Business Overview

TRANSWORLD BUSINESS ADVISORS OF HOUSTON. LISTING REF # 76931-764634

UPDATE to SDE: A shift in management payroll brings annual SDE up by $30,000+.

This beloved family-run restaurant thrives in the same location it’s been in since they opened their doors 15 years ago. With a combination of American, South American, Cuban and other world cuisines, this amazing and highly popular restaurant is ready for its new owners. The restaurant boasts a large wine selection, full bar and a variety of delicious and fresh menu items and specials that are updated frequently. All menu items have recipes and systems in place for smooth and professional execution. This much-loved local restaurant has an exceptionally dedicated and loyal client base with regulars who’ve been coming in since the beginning and several employees who’ve been on board for upwards of 10 years.
For 15 years, the restaurant has continued to grow and evolve with annual sales topping $2.3 million consistently, and that’s without being open on Sundays or for breakfast during the week. Sundays alone could add over $400,000 to the yearly revenue if the new owners set hours of 9:00 AM – 8:00 PM. With the assumption of a margin between 10-14%, adding Sundays could add between $40,000-56,000 to bottom line. The average SDE for 2018 and 2019 was $287,000 and even through Covid, the restaurant’s sales were over $1.7 million with an SDE of approx. $84,000. The to-go side of the business is still going strong even as the revenue bounces back to pre-pandemic levels.
The current staff is well-trained and highly experienced and even in the current climate, the turnover rate is extremely low. The ownership, management and employees know many of the regular clientele on a first name basis. As a hands-on owner from the day one, the seller is excited to transition this special business to its next owner.

Financial

  • Asking Price: $1,250,000
  • Cash Flow: $346,274
  • Gross Revenue: $2,496,094
  • EBITDA: N/A
  • FF&E: $50,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:4,400
  • Lot Size:N/A
  • Total Number of Employees:39
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Initially established in 2006, this restaurant started with serving breakfast and lunch and soon expanded to dinner service. In 2009, the current owner expanded into the space next door and added a bar/wine room and private room for bigger parties and events. With its quality ingredients and unique recipes, plus the consistent and stellar customer service, this restaurant quickly became a culinary destination of choice for local residents. As the area grew tremendously, so did the restaurant’s reputation and sales. Montgomery County, Texas and The Woodlands area specifically are some of the largest growing and most economically stable and successful areas in the entire state. Remodeled and updated a handful of times over the years, the aesthetics of the space are welcoming and open with the kitchen in full view. The recent addition of a full bar could add tremendously to the annual sales, and the restaurant has a long history of being a destination for quality wine service.

Is Support & Training Included:

4 weeks

Purpose For Selling:

retirement

Opportunities and Growth:

Opening on Sundays for breakfast through dinner could add a minimum of $400,000 to the annual revenue. In addition to Sundays, adding breakfast service during the week could add $800-1,000 in sales per day. With an added push for booking the private room (rehearsal dinners and the like), the new owners could add a good amount of revenue. The same can be said of hosting more wine dinners and tasting events, bourbon dinners and beer tastings, for example. The surrounding areas have grown exponentially since the restaurant first opened 15 years ago, and rapid, new development continues, both residential and commercial.

Additional Info

The company has 39 employees and is located in a building with approx. square footage of 4,400 sq ft.
The property is leased by the company for $8,569 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals resolve to sell companies. Nonetheless, the real factor and the one they say to you may be 2 entirely different things. For instance, they might say "I have too many various responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these may just be reasons to attempt to conceal the reality of changing demographics, increased competitors, recent decrease in revenues, or an array of other reasons. This is why it is extremely essential that you not depend entirely on a vendor's word, however instead, use the seller's response along with your general due diligence. This will repaint an extra realistic picture of the business's current scenario.

Existing Debts and Future Obligations

If the current business is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your offer. Numerous operating businesses take out loans with the purpose of covering things like stock, payroll, accounts payable, etc. Remember that sometimes this can imply that earnings margins are too thin. Lots of organisations fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments 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 need to be met or may result in fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area attract new customers? Many times, businesses have repeat clients, which form the core of their daily earnings. Specific aspects such as new competitors sprouting up around the area, roadway building, and personnel turnover can influence repeat clients and also adversely impact future revenues. One essential point to consider is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business regularly, the higher the possibility to build a returning client base. A final idea is the basic area demographics. Is the business located in a largely inhabited city, or is it situated on the edge of town? Exactly how might the local mean family earnings influence future earnings potential?