Business Overview

This Family Mexican Restaurant and Bar located in Montgomery County, Texas has been a staple in the community for over 20 years. The simple concept featuring traditional Tex-Mex food and alcohol allows for low food costs, low labor costs and high [profit margins.

The business has had consistent sales year over year sales even during the pandemic. The business has generated over $1,500,000.00 in sales consistently for the last 2 years. The reported cash flow is $280,000, there is more to share after and NDA is signed.

With a great team in place that allows the owners to over see the operation. The business is a great addition to a restaurant portfolio or for a new owner.

Financial

  • Asking Price: $1,200,000
  • Cash Flow: $600,592
  • Gross Revenue: $1,527,590
  • EBITDA: N/A
  • FF&E: $125,000
  • Inventory: $100,000
  • Inventory Included: Yes
  • Established: 1995

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:3,000
  • Lot Size:N/A
  • Total Number of Employees:33
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This is a leased location of 3,000 square feet with a Total Rent of $5,000. Seller is active in the business with 18 FT employees, 4 PT employees and 11 Independent Contractors. Hours of operation are 11 AM to 9 PM, Monday - Sunday. $100,000 in Inventory and $125,000 in FF&E included in Asking Price. $150,000 made in Leasehold Improvements. ServSafe and Liquor License Required.

Is Support & Training Included:

Four (4) Weeks

Purpose For Selling:

Business owners and family live too far away to continue to commute. Retire

Pros and Cons:

The business has competition in the market, but nothing that compares to the product, service and facility this business has.

Opportunities and Growth:

The business could increase revenue by investing in marketing.

Additional Info

The company was started in 1995, making the business 27 years old.
The sale does include inventory valued at $100,000, which is included in the listing price.

The company has 33 employees and is located in a building with disclosed square footage of 3,000 sq ft.
The real estate is leased by the company for $5,000 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons people decide to sell companies. However, the genuine factor and the one they tell you may be 2 absolutely different things. For instance, they may claim "I have a lot of other obligations" or "I am retiring". For lots of sellers, these factors stand. But, for some, these might simply be justifications to attempt to conceal the reality of transforming demographics, increased competition, current reduction in profits, or a variety of other reasons. This is why it is very vital that you not depend absolutely on a vendor's word, however rather, utilize the vendor's answer in conjunction with your general due diligence. This will paint an extra sensible picture of the business's existing situation.

Existing Debts and Future Obligations

If the current business is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of companies borrow money with the purpose of covering items such as stock, payroll, accounts payable, and so on. Remember that in some cases this can imply that profit margins are too thin. Numerous organisations fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that must be fulfilled or might result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location draw in brand-new consumers? Many times, businesses have repeat customers, which form the core of their daily revenues. Particular factors such as new competitors growing up around the location, roadway building, and personnel turn over can impact repeat consumers as well as negatively affect future earnings. One essential point to think about is the placement of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more individuals that see the business often, the better the opportunity to construct a returning customer base. A last idea is the basic location demographics. Is the business situated in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the regional mean household income influence future earnings potential?