Listing ID: 71463
Fast/Casual restaurant with Great Rent and Cool Artistic design & feel. Over $900,000 was spent on the build-out and equipment. This is a great rent way below market in the heart of the action on Moody St. The space is ideal for QSR or small full-service restaurant. The space is vented but it does not have full exhaust venting at this time.
FACILITY: Fully Renovated restaurant
PARKING: Street parking – parking lot nearby
EQUIPMENT: The equipment is in excellent condition and has been well maintained.
LEASE TERM: 2 years remaining with options
BASE RENT: $2,500 /month
CONCEPT: Fried Chicken Restaurant
SIZE: 1,200 sq.ft. with 1,000 sq.ft. basement
SEATS: 30 seats (plus outdoor seating)
HOURS: Currently Closed
LICENSES: Beer, Wine & Cordial License (1am)
SALES: When opened, around 48k/mo.
- Asking Price: $197,000
- Cash Flow: N/A
- Gross Revenue: $576,000
- 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 why people resolve to sell companies. Nonetheless, the genuine reason vs the one they tell you might be 2 completely different things. As an example, they might claim "I have too many other responsibilities" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may just be justifications to try to conceal the reality of transforming demographics, increased competition, recent reduction in revenues, or a range of various other reasons. This is why it is very important that you not count completely on a seller's word, but rather, utilize the seller's answer in conjunction with your overall due diligence. This will repaint an extra practical picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many businesses borrow money with the purpose of covering points such as stock, payroll, accounts payable, etc. Keep in mind that occasionally this can suggest that earnings margins are too thin. Many companies fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that must be met or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location attract new consumers? Often times, companies have repeat customers, which develop the core of their daily earnings. Certain elements such as new competitors sprouting up around the area, roadway building and construction, and employee turnover can influence repeat clients and also negatively impact future revenues. One vital point to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Clearly, the more people that see the business often, the better the possibility to develop a returning consumer base. A final thought is the general area demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? How might the local typical home income impact future revenue prospects?