Business Overview

This established restaurant in the Northwest Arkansas/River Valley area boasts an impressive loyal customer base, unique food offerings and an excellent location. With a planned local hospital expansion and a frenzy of commercial projects underway close to the business, there is a tremendous opportunity to increase revenue, especially in the area of catering. And with over 5,000 sq. ft. of real estate, including an outdoor patio seating area, it also offers plenty of room for future expansion. Potential buyers can rest assured that this restaurant has proven to be resilient. The current owners successfully operated it through the pandemic, and it is now trending to top pre-pandemic revenue numbers. All equipment is in excellent condition and the long-tenured staff is cross-trained.

Financial

  • Asking Price: $388,000
  • Cash Flow: $141,965
  • Gross Revenue: $1,117,380
  • EBITDA: $25,337
  • FF&E: $450,000
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: N/A

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:5,000
  • Lot Size:N/A
  • Total Number of Employees:33
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

A 5,000 sq. ft. building with outdoor patio seating.

Is Support & Training Included:

Free training and help with transition for a reasonable time period.

Purpose For Selling:

Owners retiring

Pros and Cons:

Customer engagement activities and live music has helped foster loyal patronage and a unique enough menu has helped secure a niche portion of the market.

Opportunities and Growth:

A local hospital's planned expansion, and a frenzy of commercial projects underway close to this business, present abundant opportunities to expand catering services. This restaurant is on pace to grow 50% year on year. With a little over 10% projected growth of the restaurant industry in 2021, it shows great promise.

Additional Info

The company has 33-35 employees and is situated in a building with disclosed square footage of 5,000 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals choose to sell companies. Nevertheless, the genuine factor and the one they tell you may be 2 totally different things. For instance, they may say "I have too many other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these might simply be reasons to try to hide the reality of changing demographics, increased competitors, recent reduction in revenues, or a variety of various other factors. This is why it is really crucial that you not depend entirely on a seller's word, yet rather, utilize the seller's response together with your overall due diligence. This will repaint an extra practical picture of the business's present scenario.

Existing Debts and Future Obligations

If the current business is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Many operating businesses take out loans with the purpose of covering points such as inventory, payroll, accounts payable, etc. Keep in mind that occasionally this can suggest that revenue margins are too tight. Many organisations fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that should be met or might result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location draw in brand-new customers? Most times, operating businesses have repeat clients, which develop the core of their day-to-day profits. Specific factors such as brand-new competitors sprouting up around the area, roadway building, and also staff turnover can influence repeat clients and negatively influence future incomes. One crucial point to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business often, the greater the chance to construct a returning client base. A final thought is the general area demographics. Is the business situated in a densely inhabited city, or is it located on the outskirts of town? Just how might the regional median home income impact future income prospects?