Listing ID: 76850
Highly profitable Iconic Restaurant located in a prime area of West Los Angeles on a major street. This upscale and traditional restaurant has been in business for over 30 years and offers indoor and outdoor dining. Its menu and impressive wine collection are highly rated by long-term loyal customers and attracts Foodies from all over. This restaurant is known for its strong customer base and “regulars” who frequent the restaurant on a consistent basis.
This turnkey restaurant has had consistent year after year increases in gross revenues with Pre-Covid revenues in excess of $2M. Gross revenue in 2017 – 2019 ranged from $2.2M – $2.6M with cash flow ranging from $823K – $1.1M. Since May 2021 when indoor dining resumed, the restaurant experienced month after month increases in gross revenues. The monthly average gross revenue since May 2021 ranges from $215k to $255k per month making these monthly revenues consistent with 2019 when the restaurant grossed over $2.6M for the year and the cash flow was over $1M. 2021 overall gross revenue is approximately $2.5M with over $900K+ in cash flow, even with the restaurant having limited seating capacity for the first 4 months in 2021. Given that this restaurant has the flexibility to provide significant outdoor, heated seating under a tent, puts this restaurant in a unique and strong position to deal with Covid or any future issues. This flexibility with this location has been determined to be significant in order to maintain strong revenue and cash flow compared to other locations that have struggled due to limited flexibility.
This highly sought-after restaurant is a unique opportunity for an industry buyer as the sellers are looking to retire. The purchase price includes $60,000 of active inventory at cost. Any inventory over $60,000 at cost will be available to purchase. The landlord is willing to provide a reasonable, long-term lease agreement at below-market rent for the first few years. Seller will provide necessary training based on the Buyer’s needs. Loyal, long-term staff (front of the house and back) is in place. The business has excellent books and records and tax returns with very few add-backs. The business qualifies for SBA finance with 10-15% down for a well-qualified, industry Buyer.
Please note this is a highly confidential matter and no additional information will be provided until a Confidentiality Agreement and background information has been submitted. Please hit the reply button or the Contact Seller button or email Matt at firstname.lastname@example.org or call (818) 999-9621 to receive a confidentiality agreement and to learn more about this opportunity.
- Asking Price: $2,599,000
- Cash Flow: $1,085,987
- Gross Revenue: $2,669,269
- EBITDA: N/A
- FF&E: N/A
- Inventory: $60,000
- Inventory Included: Yes
- Established: 1982
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:23
- Furniture, Fixtures and Equipment:N/A
Excellent building and floorplan with the flexibility to offer outdoor seating in a heated tent area. This has proven to be significant during Covid.
Seller will provide ample training as needed
Impressive, loyal customer base
Several growth opportunities that the seller will discuss with a qualified buyer.
The business was established in 1982, making the business 40 years old.
The transaction does include inventory valued at $60,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell businesses. Nevertheless, the genuine factor and the one they tell you may be 2 entirely different things. For instance, they might say "I have way too many various responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these may just be excuses to attempt to conceal the reality of transforming demographics, increased competition, current reduction in revenues, or a range of various other reasons. This is why it is very essential that you not count completely on a vendor's word, yet rather, use the seller's response together with your total due diligence. This will repaint a much more sensible picture of the business's present circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies borrow money in order to cover things such as supplies, payroll, accounts payable, etc. Remember that sometimes this can indicate that profit margins are too tight. Numerous organisations come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that must be fulfilled or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area bring in new clients? Most times, companies have repeat consumers, which form the core of their day-to-day profits. Certain elements such as new competitors sprouting up around the area, roadway construction, as well as employee turnover can impact repeat customers and negatively affect future profits. One vital point to think about is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Obviously, the more people that see the business on a regular basis, the greater the chance to build a returning customer base. A last thought is the basic location demographics. Is the business placed in a largely inhabited city, or is it situated on the edge of town? How might the local mean family income effect future earnings prospects?