Business Overview

This coffee house, nestled in a large shopping center offers a diverse and unique menu. The 2,800 sq-ft space boasts a well-equipped kitchen as well as a large dining room for customers to meet, eat, drink and relax. Due to the built-in audience of shopping center environment, the owners have introduced a variety of new menu items. Sales are on pace to increase 14% over 2019.

The business is staffed with a combination of PT and FT employees. Owner works in a management role and would like to sell now and focus on other investments.

Opened in 2017 in the newly constructed shopping center, the owners put $300,000 into the buildout and design of this business. It’s now turnkey opportunity and can be operated “as-is” right away, but a new owner would have full autonomy to add their own touches. Whether it be small menu changes or a complete overhaul – everything required is included in the purchase of the business.

Key Aspects
• 28,00 Sq Ft restaurant. Lease stipulates only coffee house permitted in shopping area
• Indoor and outdoor seating available
• 11 PT and FT staff

Growth Opportunities
• Can be purchased “as is” or converted to new owner’s concept
• Continuing growing customer base with rewards and frequent shopper promotions

Shareowner’s Objectives
• Owners have decided to divest some of their businesses as they reach retirement. Willing to help in the transition however is necessary and will provide all the secrets of their success in the 5 years of being open.

Financial

  • Asking Price: $350,000
  • Cash Flow: $125,000
  • Gross Revenue: $565,000
  • EBITDA: N/A
  • FF&E: $80,000
  • Inventory: $30,000
  • Inventory Included: Yes
  • Established: 2017

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:2,800
  • Lot Size:N/A
  • Total Number of Employees:12
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

retirement

Additional Info

The venture was established in 2017, making the business 5 years old.
The sale shall include inventory valued at $30,000, which is included in the listing price.

The company has 12 employees and resides in a building with disclosed square footage of 2,800 sq ft.
The real estate is leased by the company for $6,900 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals choose to sell businesses. Nevertheless, the genuine factor vs the one they tell you might be 2 completely different things. For instance, they might say "I have too many various obligations" or "I am retiring". For many sellers, these factors are valid. However, for some, these might simply be reasons to attempt to hide the reality of changing demographics, increased competition, recent decrease in earnings, or an array of other factors. This is why it is very crucial that you not rely entirely on a seller's word, yet instead, make use of the seller's solution together with your general due diligence. This will paint an extra realistic picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous companies borrow money with the purpose of covering things like supplies, payroll, accounts payable, and so on. Bear in mind that occasionally this can mean that earnings margins are too tight. Numerous organisations fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that need to be satisfied or might result in fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area draw in new customers? Most times, operating businesses have repeat customers, which form the core of their day-to-day revenues. Certain factors such as brand-new competitors growing up around the area, roadway construction, as well as staff turnover can impact repeat consumers and also negatively affect future revenues. One vital thing to take into consideration is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business often, the greater the opportunity to develop a returning customer base. A final thought is the general location demographics. Is the business located in a largely populated city, or is it located on the outside border of town? How might the neighborhood typical family earnings influence future earnings potential?