Listing ID: 70295
Once known as the “Chops & Hops” and now known as the “Hwy 79 Food & Brew”, this property needs a new start with a new proprietor. Facilities have been closed for several months. Sale price includes all the fixtures, furniture and equipment needed to operate a restaurant, bar and brewery. Pretty much everything that you need in fixtures, furniture and equipment, including dishware, silverware, pots/pans, glassware, etc. Attractive building both inside and out. There is a two bedroom – one bath apartment above the kitchen area. This property listing and personal property is being sold ‘As Is Where Is’ with no warranties or guarantees, expressed or implied. No liquor or malt beverage licenses included.
There is a waste water & sewer services agreement and easement in place, (see documents), of which there is currently a $200 per month fee in place for those services.
- Asking Price: $699,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals choose to sell operating businesses. Nevertheless, the true reason vs the one they tell you may be 2 entirely different things. As an example, they might state "I have a lot of various responsibilities" or "I am retiring". For many sellers, these factors are valid. But, for some, these may simply be justifications to try to conceal the reality of changing demographics, increased competition, recent reduction in earnings, or a variety of various other reasons. This is why it is very crucial that you not rely totally on a seller's word, however instead, utilize the vendor's answer along with your total due diligence. This will paint a much more reasonable image of the business's current circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your deal. Lots of operating businesses borrow money with the purpose of covering items like supplies, payroll, accounts payable, etc. Remember that sometimes this can suggest that profit margins are too tight. Lots of companies fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that have to be satisfied or may cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location draw in new customers? Most times, businesses have repeat consumers, which create the core of their daily revenues. Specific aspects such as brand-new competitors sprouting up around the area, roadway building, as well as employee turnover can influence repeat clients and also negatively impact future earnings. One important point to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the greater the possibility to develop a returning customer base. A final thought is the basic area demographics. Is the business located in a largely inhabited city, or is it situated on the outside border of town? How might the neighborhood mean family income impact future income prospects?