Listing ID: 76128
Well-established and very popular small café/restaurant for sale. This business has a great reputation for its menu and quality food, and is a hot spot for breakfast and lunch in the area. Many local regulars patronize the restaurant frequently. The business also has a liquor license and serves alcoholic beverages in addition to its great coffee drinks. Known for its fun atmosphere, the restaurant has at times been open on weekend evenings, and a new owner could certainly be open for dinner if desired.
The surrounding area is experiencing strong population growth, promoting the growth in the number of regular patrons. Sales volume was set back by the pandemic, but remained strong enough to produce significant owner’s cash flow, which has not declined from years prior to 2020.
Very reasonable overhead with a fixed rent through December of 2023.
Established over 10 years ago, and owned and operated by current owner since 2015.
Located in a beautiful area where competitors help bring patrons for all to benefit.
Pre-pandemic annual sales volume was 35% to 40% higher than 2020, and there’s no reason to believe sales won’t return to those levels or more, especially given the area population growth. Business hours could also be expanded.
- Asking Price: $225,000
- Cash Flow: $101,776
- Gross Revenue: $440,004
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:15
- Furniture, Fixtures and Equipment:N/A
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell companies. Nonetheless, the genuine reason vs the one they tell you might be 2 absolutely different things. For instance, they might say "I have way too many various commitments" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these might just be reasons to attempt to conceal the reality of altering demographics, increased competitors, recent decrease in earnings, or a range of other factors. This is why it is extremely vital that you not rely absolutely on a seller's word, however rather, utilize the seller's answer combined with your overall due diligence. This will repaint a much more realistic picture of the business's current scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Numerous companies borrow money so as to cover items like inventory, payroll, accounts payable, and so on. Bear in mind that occasionally this can imply that profit margins are too tight. Numerous organisations fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that need to be satisfied or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location bring in brand-new consumers? Most times, operating businesses have repeat clients, which form the core of their day-to-day profits. Certain aspects such as brand-new competitors sprouting up around the location, roadway construction, as well as personnel turnover can influence repeat clients as well as negatively influence future earnings. One essential point to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Obviously, the more individuals that see the business regularly, the better the chance to construct a returning customer base. A final thought is the basic location demographics. Is the business placed in a largely inhabited city, or is it located on the outside border of town? Exactly how might the regional average family earnings impact future income potential?