Listing ID: 76693
This Business is listed by Michael Philipp of Sunbelt Business Brokers. This restaurant is conveniently located near modern hotels and recreation areas. Visitors and local residents enjoy world class mountain biking, walking trails, nearby mountains, camping, and hiking trails, all within easy reach. The Business benefits from exceptionally high customer ratings and a loyal local following, as well as a burgeoning visitor clientele. This well established American/Chinese restaurant has been operating for over 18 years, and is financially sound together with accelerating profits year after year
- Asking Price: $600,000
- Cash Flow: $250,000
- Gross Revenue: $1,000,000
- EBITDA: $250,000
- FF&E: $200,000
- Inventory: $6,000
- Inventory Included: N/A
- Established: 2003
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:4,300
- Lot Size:N/A
- Total Number of Employees:9
- Furniture, Fixtures and Equipment:N/A
This restaurant occupies a free-standing 4,300 sq ft building, utilizing just over 3,500 sq ft, and has ample parking. The building was constructed in 2007, and is situated in a growing business district. The real estate is available for purchase separately, if agreed upon by both parties. Additionally, seller financing of real estate will be considered on a case by case basis.
Seller agrees to provide training for four weeks at ten hours per week following close of escrow. Seller will be paid $13.00 per hour. The seller will then provide consultation by phone, text, and email for an additional four weeks.
Seller to retire from the restaurant industry.
Due to its unique location, there is no competition for this type of food within a reasonable driving distance. The restaurant is so well established, it was able to increase gross revenue in 2020 in comparison to 2019. The customer ratings are very high; averaging 4.7 out of 5 based on well over 500 Google reviews.
There is unused space and the opportunity to expand the food offerings. Additionally, investments into web technology would allow for direct, on-line ordering, and delivery services.
The venture was started in 2003, making the business 19 years old.
The sale won't include inventory valued at $6,000*, which ins't included in the listing price.
The company has 9 employees and is located in a building with estimated square footage of 4,300 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals choose to sell businesses. Nonetheless, the real factor vs the one they say to you might be 2 totally different things. For instance, they may claim "I have way too many various obligations" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these may simply be excuses to try to conceal the reality of transforming demographics, increased competitors, recent reduction in earnings, or a variety of other reasons. This is why it is extremely important that you not rely entirely on a vendor's word, but rather, utilize the seller's response along with your total due diligence. This will paint a more sensible image of the business's current scenario.
Existing Debts and Future Obligations
If the current business is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Lots of operating businesses take out loans so as to cover points like inventory, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can suggest that profit margins are too tight. Numerous businesses come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments 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 suppliers that should be satisfied or might cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area attract brand-new customers? Most times, companies have repeat clients, which create the core of their daily earnings. Certain factors such as new competition growing up around the location, roadway construction, as well as employee turnover can impact repeat customers as well as negatively influence future incomes. One crucial thing to consider is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Clearly, the more people that see the business on a regular basis, the better the possibility to develop a returning consumer base. A final idea is the basic area demographics. Is the business situated in a densely populated city, or is it located on the outside border of town? Just how might the local median home earnings influence future revenue potential?