Business Overview

TRANSWORLD BUSINESS ADVISORS OF HOUSTON. LISTING REF #76931-949417

This build-your-own pizza restaurant opened in 2016 and is located in central Houston just minutes from popular downtown venues. This franchise has been rated as a top food franchise by Entrepreneur, Fast Casual, and Restaurant Business!

This brand started in 2008 and has over 75 locations across the United States. The store atmosphere is centered around the hearth of the signature brick oven and designed to blend their Italian heritage with the eclectic vibe of their hometown by mixing industrial elements with reclaimed wood and vintage tile. Menu items include authentic brick oven pizzas, pastas, chopped salads, paninis, gelato, and 25 taps of craft beer. Dine-in, carry out, delivery, and catering provide multiple revenue streams!

The restaurant for sale has 3,093 sq ft and is located in an area with excellent demographics, visibility, and traffic counts. The monthly rent (including CAM) is $7,176. The business averaged about $550,000 in annual revenue (pre-covid) with $80K in discretionary earnings. Lunch business was weak in 2020 and beginning of 2021 since many offices were closed in the area due to covid. Revenues in 2021 are returning to normal levels and will continue to increase into 2022 as offices, conference centers, and nearby venues reopen. A new 326-unit apartment building is also opening nearby in early 2022.

The listing price includes over $60,000 in FF&E, $150,000 in Leasehold Improvements, plus $5,000 in Inventory. There are 7 employees including 2 managers on staff. The owner will provide 2 weeks of training to ensure a smooth transition. Additional time is available upon request. The current owner is active in the business but wishes to retire in order to spend more time with family.

Increased marketing and sampling to nearby businesses, schools, and churches will help increase revenue going forward. Obtaining a liquor license is another opportunity for growth. There are also strong delivery, catering, and corporate opportunities in the area.

Financial

  • Asking Price: $279,000
  • Cash Flow: $80,000
  • Gross Revenue: $550,000
  • EBITDA: N/A
  • FF&E: $60,600
  • Inventory: $5,000
  • Inventory Included: N/A
  • Established: 2016

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:3,093
  • Lot Size:N/A
  • Total Number of Employees:7
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

retirement

Additional Info

The venture was started in 2016, making the business 6 years old.
The deal won't include inventory valued at $5,000*, which ins't included in the requested price.

The company has 7 employees and resides in a building with disclosed square footage of 3,093 sq ft.
The building is leased by the company for $7,176 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals decide to sell companies. Nevertheless, the genuine factor and the one they say to you may be 2 absolutely different things. For instance, they may claim "I have a lot of various commitments" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may simply be justifications to try to hide the reality of transforming demographics, increased competition, current decrease in revenues, or a variety of various other factors. This is why it is very important that you not count absolutely on a seller's word, but rather, make use of the vendor's answer together with your total due diligence. This will repaint a much more practical image of the business's current situation.

Existing Debts and Future Obligations

If the existing company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of operating businesses take out loans so as to cover items such as inventory, payroll, accounts payable, etc. Keep in mind that occasionally this can imply that earnings margins are too small. Many organisations come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that need to be fulfilled or may cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location bring in new consumers? Often times, operating businesses have repeat customers, which form the core of their day-to-day earnings. Particular elements such as brand-new competition growing up around the location, road building, as well as staff turnover can affect repeat consumers and negatively impact future revenues. One essential thing to think about is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Clearly, the more people that see the business often, the higher the possibility to develop a returning client base. A final idea is the general location demographics. Is the business situated in a densely inhabited city, or is it located on the edge of town? Just how might the regional average home earnings influence future income potential?