Listing ID: 72146
This upscale Italian establishment is located in a popular location around Philadelphia. The family-owned restaurant has a fully equipped, large kitchen and 120-130 seats. The location has an event room that can be rented out for small events and has enough kitchen space to potentially do catering.
Asking Price: $399,000
Gross Revenue: $900,000
Cash Flow: $150,000
Square Footage: 6,000
# of Seats: 120-130
4 ovens, 3 bain maries, cappuccino machine, 3 reach-in coolers, 3 reach-in freezers, 16 ft. hood, deep fryer, 2 8-burner stoves, 6-burner flat top
Real Estate: Leased
Year Established: 2011
- Asking Price: $399,000
- Cash Flow: $150,000
- Gross Revenue: $900,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2011
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
# of Seats: 120-130 FF&E: Included 4 ovens, 3 bain maries, cappuccino machine, 3 reach-in coolers, 3 reach-in freezers, 16 ft. hood, deep fryer, 2 8-burner stoves, 6-burner flat top
Yes 2 weeks
No direct competition
Could add liquor license or catering services
The business was established in 2011, making the business 11 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals choose to sell operating businesses. Nonetheless, the genuine factor vs the one they say to you might be 2 absolutely different things. For instance, they may state "I have way too many various obligations" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these may just be justifications to try to hide the reality of transforming demographics, increased competitors, current reduction in profits, or a range of various other reasons. This is why it is really crucial that you not count totally on a seller's word, yet instead, utilize the vendor's answer in conjunction with your overall due diligence. This will paint an extra sensible picture of the business's current situation.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many operating businesses take out loans in order to cover points such as inventory, payroll, accounts payable, etc. Bear in mind that sometimes this can mean that revenue margins are too small. Many companies come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that must be fulfilled or might lead to fines 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 consumers, which form the core of their everyday earnings. Specific variables such as new competition growing up around the location, roadway construction, and also staff turnover can impact repeat clients and also adversely affect future incomes. One vital thing to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Certainly, the more people that see the business on a regular basis, the better the opportunity to develop a returning consumer base. A final idea is the basic area demographics. Is the business situated in a largely inhabited city, or is it located on the outskirts of town? How might the neighborhood typical household earnings effect future income potential?