Listing ID: 75091
One of Phoenix, Arizona’s most successful Italian restaurants, this business scores high on food and service and cash flow. This very successful restaurant has been in business for over 20 years and its menu and quality of service has garnered a customer base that extends across the Phoenix metro area. Attributes of its long term success are proven sales, profit levels and 2021 SDE will be well over $500,000 plus the all important high quality food and service. This is an Award Winner. Open 7 days per week for lunch and dinner, it has a restaurant liquor license and full premium stocked bar. All facets are in place for the Buyer to continue the winning tradition of Italian food and service. Pre Approved for SBA 7A loan or seller might consider carrying a portion of the purchase price. Restaurant continued to show profitability during the pandemic despite governmental restrictions on occupancy. Non disclosure agreement and proof of funds required of all inquiries. Price just reduced to $995,000 and 2021 SDE looks like it will be close to $600,000! Now Bargain Priced. NOW IN ESCROW. TAKING BACK UP OFFERS.
- Asking Price: $995,000
- Cash Flow: $500,000
- Gross Revenue: $2,100,000
- EBITDA: N/A
- FF&E: $400,000
- Inventory: $25,000
- Inventory Included: N/A
- Established: 1999
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:5,000
- Lot Size:N/A
- Total Number of Employees:40
- Furniture, Fixtures and Equipment:N/A
The restaurant is notably and constantly being kept in top notch shape. Many upgrades have been made and equipment is replaced when needed. Seller prides himself on clean premises and constant upgrades and improvements. Big kitchen and several dining areas plus full bar.
Two weeks and more available for compensation
They own the market around them and draw guests from a wider trade area than normal. Great menu and food, great service in this category of restaurants leads to high cash flow and SDE. Not many restaurants in this category can match what they do.
Would be possible to do another one in the trade area but that might remove the touch of the on-site owner/operator.
The venture was established in 1999, making the business 23 years old.
The transaction doesn't include inventory valued at $25,000*, which ins't included in the asking price.
The company has 40 employees and is situated in a building with estimated square footage of 5,000 sq ft.
The building is leased by the business for $6,300 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals resolve to sell companies. Nevertheless, the true reason vs the one they tell you may be 2 completely different things. As an example, they might say "I have too many various obligations" or "I am retiring". For many sellers, these factors stand. However, for some, these might just be reasons to attempt to conceal the reality of transforming demographics, increased competition, current reduction in incomes, or an array of other factors. This is why it is very essential that you not count entirely on a seller's word, however instead, use the vendor's solution in conjunction with your total due diligence. This will paint a more practical picture of the business's present scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Many operating businesses borrow money so as to cover points like stock, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can imply that revenue margins are too thin. Lots of organisations fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that have to be met or might cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location bring in new clients? Many times, businesses have repeat consumers, which create the core of their day-to-day revenues. Specific factors such as new competition growing up around the area, roadway construction, and also employee turn over can impact repeat consumers as well as negatively influence future profits. One crucial point to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business on a regular basis, the greater the possibility to construct a returning consumer base. A last thought is the general area demographics. Is the business located in a densely populated city, or is it located on the outside border of town? Exactly how might the neighborhood average house earnings influence future revenue prospects?