Business Overview

TRANSWOLRD BUSINESS ADVISORS OF HOUSTON. LISTING REF #76931-641098

**UPDATE: Seller Financing Available Up To $40,000!**

Are you a caterer, baker or chef looking to scale your current business while also collecting passive income? This is the ideal opportunity for you. Get in at the early stage of this growing trend. Numerous trends are driving the demand for ghost kitchens. This business is a fully equipped “ghost kitchen” in a central Houston location (near the Heights) with multiple tenants in place, but it still has capacity left to grow. If you’re looking for an absentee business to augment your income—this is it. It takes very little time to manage and makes for a very good passive investment for any new owner, but it is ideal for a caterer or baker who wants to grow their business.

This business is a relatively recent and growing concept – a “ghost kitchen”. For businesses that neither need nor can afford to lease a their own commercial kitchen, this business provides flexible lease terms and all hour’s access to a fully equipped and licensed/permitted kitchen. Tenants are often caterers, bakeries and, increasingly, restaurants that offer only take-out service utilizing any of several delivery services such as GrubHub, DoorDash or UberEats. This kitchen remained open and profitable during the COVID lock-down. A buyer would be smart to move fast on this great opportunity for an investor seeking passive income or for a food service business that can utilize the available capacity, essentially obtaining a rent-free kitchen for their own use.
Retail space converted to a fully equipped, licensed and permitted kitchen.

Financial

  • Asking Price: $85,000
  • Cash Flow: $18,000
  • Gross Revenue: $68,400
  • EBITDA: N/A
  • FF&E: $80,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2015

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,900
  • Lot Size:N/A
  • Total Number of Employees:N/A
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

other investments

Additional Info

The business was established in 2015, making the business 7 years old.

The real estate is leased by the company for $2,800 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals resolve to sell businesses. Nevertheless, the genuine factor vs the one they tell you may be 2 absolutely different things. For instance, they may state "I have a lot of other commitments" or "I am retiring". For numerous sellers, these factors stand. But, for some, these might simply be excuses to try to hide the reality of altering demographics, increased competitors, current reduction in revenues, or a range of other factors. This is why it is really vital that you not rely absolutely on a vendor's word, but instead, use the seller's response together with your general due diligence. This will repaint a much more reasonable image of the business's present scenario.

Existing Debts and Future Obligations

If the current business is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Numerous businesses borrow money so as to cover items such as stock, payroll, accounts payable, etc. Remember that occasionally this can mean that revenue margins are too small. Lots of businesses fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that need to be met or might lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area bring in new consumers? Most times, operating businesses have repeat consumers, which form the core of their everyday profits. Particular variables such as brand-new competition growing up around the location, road construction, and also personnel turn over can affect repeat consumers as well as adversely influence future profits. One vital point to consider is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the better the opportunity to construct a returning client base. A last thought is the general area demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? Exactly how might the neighborhood mean household income impact future income potential?