Listing ID: 69932
Whether you’re looking to expand your current Japanese restaurant by opening a second location or thinking about opening your first location, this exciting business could be just what you need! Located within the Greater Louisville MSA (Metropolitan Statistical Area), this restaurant is a well-known and profitable, with strong financial performance year over year.
The business is located in an affluent area, with median household incomes far surpassing the state and national averages. This is a contributing factor in the restaurant’s recent strong financial performance despite Covid-19 impacts on the industry. Unlike many of its competitors, the business adapted quickly to serve customers in the most efficient way possible.
- Asking Price: $325,000
- Cash Flow: $298,436
- Gross Revenue: $993,791
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2008
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
The restaurant operates out of a large space in a highly visible strip center in the Greater Louisville MSA. The space consists of a fully operational kitchen and recently updated dinging room. All furniture, fixtures, and equipment are well-maintained and included with the sale of the business.
Will train for 4 weeks @ $0 cost. Throughout its tenure, the business has served both solely sushi and a combination of traditional Japanese entrees and sushi. An understanding of traditional Japanese cuisine and sushi would be helpful, but is not necessary. A restaurant manager could be hired to handle daily operations and ordering, limiting the amount of prior restaurant industry knowledge that is required. The current owner is heavily involved in daily operations and does not employ a manager. He is willing to remain in the business for a pre-negotiated amount of time to ensure a smooth transition and adequate training.
Owner is looking to retire after many years of operating a successful restaurant
Within the city of Louisville, there are several Japanese and sushi restaurants. However, there are few of these restaurants in close proximity to this business. There is one Japanese restaurant approximately 1 mile from the business. Otherwise, competition is quite limited. The restaurant industry as a whole is projected to make a strong comeback following the Covid-19 pandemic. Discretionary spending is anticipated to increase, leading to more meals consumed outside of the home.
Recent growth is attributed to many factors, including Covid-related closures of other restaurants in the area and resumption of in-person services at a large, local church. Additionally, the restaurant introduced online ordering in late 2020, creating an easier ordering experience for customers. Future growth opportunities include: Increase marketing and advertising efforts in the area Resume lunch offering, as the restaurant is currently only serving dinner Expand menu offerings to include traditional entrees, in addition to sushi
The venture was founded in 2008, making the business 14 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell businesses. Nonetheless, the real reason vs the one they say to you might be 2 totally different things. As an example, they may state "I have too many various commitments" or "I am retiring". For lots of sellers, these factors stand. However, for some, these might simply be excuses to try to hide the reality of altering demographics, increased competition, current reduction in revenues, or a range of other factors. This is why it is very crucial that you not rely completely on a vendor's word, but instead, make use of the seller's solution together with your general due diligence. This will paint a much more reasonable image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Many operating businesses take out loans with the purpose of covering points such as supplies, payroll, accounts payable, and so on. Remember that in some cases this can suggest that revenue margins are too thin. Numerous businesses fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that have to be satisfied or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location bring in new customers? Often times, operating businesses have repeat customers, which create the core of their day-to-day revenues. Particular elements such as brand-new competitors growing up around the location, roadway building, as well as staff turnover can influence repeat consumers and negatively impact future profits. One important point to think about is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Clearly, the more individuals that see the business regularly, the better the opportunity to develop a returning consumer base. A final thought is the basic location demographics. Is the business placed in a densely populated city, or is it located on the edge of town? Just how might the regional median household income effect future income potential?