Listing ID: 73025
Restaurant, Rental Cabins, and New Owners Residence over 3,200′ with 4 Bedrooms and 3 Baths – Many with Lake Views
The owners have built a strong brand drawing about 80% of their restaurant business from locals.
There is an opportunity to grow the catering business by renting/building another kitchen to serve this market. There is a great demand for catering of their faire which they have been unable to serve due to limited facility availability. They do cater when they can work it in. NOTE: There are 145 companies with 20-999 employees in the county.
The owners have made major upgrades and additions every year for the past 5+ years, resulting in growing sales and profits year over year. The new owner should be able to focus on managing and promoting the business since all of the upgrades have been completed.
Restaurant seats 150, with many tables having a lakeview. There is a large patio area with lake views too. Sales for 2019 were initially impacted as they made adjustments due to COVID restrictions. They ended up with sales slightly greater than 2018 but cost where higher reducing net.
In spite of COVID they ended up profitable in 2019 with 2020 Sales & Net up 25%/55% over 2019 and 2021 Sales & Net up 25%/35% over 2020
Sales for 2021 completed another record year. There has been consistent substantial growth for past 5 years. Sales have been boosted by all the upgrades and excellent management of this property.
The owner’s house is 4 bedrooms + 3 Baths and could easily be converted into 2 rental units. A unit could be set aside for onsite manager to live. The new owner could use the top two floors which would consist of a 3 bedroom with 2 bath home. The lower level could then be converted into a rental units.
There are currently 11 rental cabins which have all been upgraded and many have lake views. Rental sales for 2021 are almost triple 2017 rentals and they turn people away every season. There is a total of approx. 6 acres with room to add 3 cabins without taking away from the intimate feel of this unique property. The owner estimates the cost per new cabin would be $60K each.
Real Estate is Listed by Richard Roberts at The Brandon Group.
Please contact Richard Roberts by using email form to the right or by calling his direct number, 479.689.4455 Ext 11.
NOTE: The phone number to the right that is revealed when you click on button is not our phone number. It is a tacking number that we do not use.
- Asking Price: $2,375,000
- Cash Flow: $492,250
- Gross Revenue: $2,124,743
- EBITDA: N/A
- FF&E: $158,356
- Inventory: $5,000
- Inventory Included: Yes
- Established: 1940
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:3,400
- Lot Size:N/A
- Total Number of Employees:11
- Furniture, Fixtures and Equipment:N/A
The entire complex has been totally upgraded over the past five years to the highest standards possible. The only thing you will need to do is standard day to day maintenance. There is acreage for adding cabins and the house can be converted into a couple of Airbnb units. Rental cabin income has increased by 30% or more year over year since 2017.
The owners are going to stay in the area to provide all the training and support needed by the new owners. There are 3 people crossed trained for front of the house and back of the house. Both areas have one person capable of replacing owners.
This part of the country continues to grow at an above average rate. We feel the growth in population and the quality of the product will continue to keep this growing.
The hours in the restaurant can be extended and also add Mondays to the days open. Breakfast could also be added to the menu. The cabins are fully booked for the summer and fishing/hunting times which indicates there may be some room for price increases. There is room for additional cabins to be built and the house can be converted into a Airbnb. "The fastest-growing counties and metropolitan area in Arkansas over the past decade were in the state's northwest region, according to data released Thursday from the U.S. Census Bureau. Benton County had the state's fastest growth, with its population increasing by 28.5% since 2010 to 284,333. The second fastest growing, Washington County, saw its population increase by about 21% to 245,871. The Fayetteville-Springdale-Rogers metropolitan area grew by 24.2% to 546,725. The region is home to the headquarters of Walmart and Tyson Foods, as well as the University of Arkansas' flagship campus in Fayetteville." Source AP News
The company was founded in 1940, making the business 82 years old.
The sale shall include inventory valued at $5,000, which is included in the suggested price.
The business has 11FT 14PT employees and is located in a building with disclosed square footage of 3,400 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell operating businesses. Nevertheless, the genuine reason vs the one they say to you may be 2 absolutely different things. As an example, they may claim "I have too many other obligations" or "I am retiring". For many sellers, these factors are valid. But, for some, these might just be excuses to try to hide the reality of altering demographics, increased competitors, recent decrease in revenues, or a variety of various other factors. This is why it is very essential that you not rely entirely on a vendor's word, but instead, make use of the vendor's response together with your total due diligence. This will repaint a much more sensible picture of the business's current situation.
Existing Debts and Future Obligations
If the existing business is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of operating businesses borrow money so as to cover points such as inventory, payroll, accounts payable, and so on. Keep in mind that sometimes this can mean that revenue margins are too thin. Numerous businesses 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 take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that should be satisfied or might result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area draw in brand-new clients? Most times, businesses have repeat consumers, which form the core of their everyday revenues. Particular variables such as brand-new competition sprouting up around the area, roadway building, as well as staff turn over can influence repeat customers and negatively influence future incomes. One essential point to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more individuals that see the business often, the better the opportunity to build a returning customer base. A final thought is the basic location demographics. Is the business situated in a densely populated city, or is it located on the edge of town? Just how might the local typical household income impact future revenue prospects?