Listing ID: 71450
This is a great opportunity to acquire a first-rate restaurant at a huge discount. No expense was spared with over 7 million being spent on the build-out and equipment. Sales were $3.6 a year with the Deli concept and the full-service restaurant with a great rent. This really is a must see!
FACILITY: Completely re-invented space with a $5,000,00 in renovations
PARKING: Street parking & local lots
EQUIPMENT: The equipment is in excellent condition and has been well maintained.
LEASE TERM: Lease ends in July with option to extend
BASE RENT: All in approx. $10k/mo.
CONCEPT: Sandwich Shop & Full Bar and Restaurant
SIZE: 5,000 square ft main floor – 4,000 square ft basement
SEATS: 125 seats
HOURS: Currently closed
LICENSES: Full Liquor License (1 am)
SALES: $3,600,000 in sales before Covid
ASKING PRICE: $1,450,000 (For the Business) – Some Financing for Qualified Buyers
- Asking Price: $1,450,000
- Cash Flow: N/A
- Gross Revenue: $3,600,000
- 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 individuals resolve to sell businesses. However, the genuine reason vs the one they say to you might be 2 totally different things. As an example, they may claim "I have too many various obligations" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these may simply be justifications to try to conceal the reality of altering demographics, increased competitors, current reduction in profits, or a variety of other reasons. This is why it is very essential that you not rely absolutely on a vendor's word, yet instead, utilize the seller's solution along with your overall due diligence. This will paint an extra realistic image of the business's present scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of businesses take out loans in order to cover things like supplies, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can indicate that revenue margins are too thin. Lots of organisations fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that must be met or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location attract brand-new clients? Often times, companies have repeat clients, which develop the core of their day-to-day profits. Certain variables such as brand-new competition sprouting up around the area, roadway building, and also employee turn over can impact repeat customers and adversely impact future revenues. One vital thing to consider is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Obviously, the more individuals that see the business often, the better the possibility to develop a returning client base. A last idea is the basic location demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? Just how might the regional typical home income impact future revenue prospects?