Listing ID: 71557
This is a Thai/Chinese food restaurant. Serving bar with full liquor license.
seats 19 with large take out and door to door delivery service.
Please go to business website use ID#AC
- Asking Price: $249,000
- Cash Flow: $150,000
- Gross Revenue: $750,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1991
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,300
- Lot Size:N/A
- Total Number of Employees:7
- Furniture, Fixtures and Equipment:N/A
This is a 2300 sf restaurant with basement of approximately 2000 sf working area.
The owner will train new buyer in the daily operation.
owner is retiring
The venture was established in 1991, making the business 31 years old.
The company has 7 employees and is situated in a building with approx. square footage of 2,300 sq ft.
The building is leased by the company for $5,000 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons people decide to sell companies. Nevertheless, the true reason and the one they say to you might be 2 totally different things. As an example, they might state "I have a lot of other obligations" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these might just be excuses to try to conceal the reality of transforming demographics, increased competition, recent reduction in revenues, or a range of other reasons. This is why it is extremely vital that you not depend totally on a seller's word, yet instead, use the vendor's response combined with your overall due diligence. This will repaint a more reasonable picture of the business's current scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of operating businesses borrow money so as to cover items such as stock, payroll, accounts payable, so on and so forth. Remember that sometimes this can suggest that profit margins are too small. Numerous organisations fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future commitments to think about. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that should be met or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area draw in new customers? Most times, operating businesses have repeat customers, which form the core of their daily earnings. Specific elements such as brand-new competition growing up around the location, roadway building, as well as personnel turnover can influence repeat customers and also negatively impact future profits. One essential point to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business on a regular basis, the better the opportunity to develop a returning customer base. A final thought is the general location demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? How might the regional mean household income influence future income prospects?