Listing ID: 76766
One of Grand Junction’s long time consistent restaurant stand-outs. Steady 135-165K cash flow and proven performance through the Pandemic. Located in Grand Junction with excellent visibility, access and parking. Significant recent investments in equipment and remodeling. All systems are established and running smoothly.
Even being closed several weeks for front-of-the-house remodel early in the year, revenue in 2021 was at pre-covid levels and it was the most profitable year ever for this 15 year business.
Potential purchasers should note that the asking price does NOT include inventory. “Cash Flow” referred to is Seller’s Discretionary Earnings.
Please Note: Potential buyers will be asked to complete buyer registration, sign a non-disclosure, interview with broker and provide evidence of the resources to complete a transaction of this size before additional confidential information will be provided.
- Asking Price: $370,000
- Cash Flow: $164,000
- Gross Revenue: $1,020,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $25,000
- Inventory Included: N/A
- Established: 2007
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Leased. Lease assignment to buyer or new lease to be accepted by Land Lord as part of purchase conditions.
Seller will provide effective training and knowledge transfer to the Buyer in all matters relating to Company operations.
There are other restaurants that serve this market.
Restaurant currently operates 5 days per week. Opening 7 days per week would increase sales.
The venture was started in 2007, making the business 15 years old.
The sale won't include inventory valued at $25,000*, which ins't included in the requested price.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals choose to sell operating businesses. Nonetheless, the real factor vs the one they tell you may be 2 entirely different things. For instance, they may state "I have too many other responsibilities" or "I am retiring". For many sellers, these factors stand. But also, for some, these might simply be reasons to attempt to hide the reality of changing demographics, increased competitors, current reduction in revenues, or an array of other reasons. This is why it is extremely vital that you not depend entirely on a vendor's word, but instead, use the vendor's answer combined with your general due diligence. This will repaint an extra sensible image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of operating businesses finance loans so as to cover items such as supplies, payroll, accounts payable, etc. Bear in mind that in some cases this can imply that earnings margins are too thin. Lots of 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 commitments to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that should be satisfied or may result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area attract brand-new customers? Often times, operating businesses have repeat customers, which create the core of their everyday revenues. Certain variables such as brand-new competition growing up around the area, road building, and staff turn over can impact repeat clients and negatively influence future earnings. One crucial point to take into consideration is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business on a regular basis, the higher the chance to develop a returning customer base. A last idea is the basic location demographics. Is the business situated in a densely populated city, or is it situated on the outside border of town? Just how might the neighborhood median house income influence future earnings potential?