Listing ID: 76853
This Silverlake area restaurant and bar with liquor, onsite parking, excellent street
visibility boasts what may arguably be the most coveted outdoor patio in the area. The
restaurant has 2 separate interior dining areas that open into an adjacent 12 seat bar as well as its outdoor patio and manager’s office. The kitchen has a large walk-in cooler, a separate walk-in freezer, a large dry storage room, prep room and a comprehensive
line with deep fryers, a grill, griddle, stove and 2 convection ovens.
- Asking Price: $795,000
- Cash Flow: $402,302
- Gross Revenue: $2,812,461
- EBITDA: $402,302
- FF&E: $40,000
- Inventory: $15,000
- Inventory Included: N/A
- Established: 1980
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:25
- Furniture, Fixtures and Equipment:N/A
This 4,600 square foot venue has seating for just over 100 inside. It boasts a remarkable 1,900 square foot patio that can accommodate nearly 100 outside. The premise leases for $17,800 per month on a lease until 2028 with one 10-year option. The business’s furniture, fixtures, equipment, goodwill and Type 47 Liquor License will be included. The parking lot is on a separate lease $1.2k/month lease with the Department of Water & Power. It has been a long-term arrangement anticipated to continue
Seller will train for 2 weeks at 20 hours per week.
While competition exists throughout the ever popular Silverlake, Los Feliz, Echo Park and Atwater Village enclaves, few if any have as attractive of layout or spaciousness.
New operators may continue with the current concept that has proven successful for nearly 40 years or they may capitalize on the venue’s attributes and versatility. The space can be adapted to accommodate any number of concepts.
The company was started in 1980, making the business 42 years old.
The transaction shall not include inventory valued at $15,000*, which ins't included in the listing price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell operating businesses. Nevertheless, the real factor and the one they tell you may be 2 absolutely different things. As an example, they might claim "I have too many other responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may simply be reasons to try to conceal the reality of changing demographics, increased competition, current reduction in incomes, or a range of other factors. This is why it is extremely important that you not count totally on a seller's word, however rather, make use of the vendor's response in conjunction with your overall due diligence. This will repaint an extra reasonable image of the business's present scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of businesses take out loans with the purpose of covering points such as supplies, payroll, accounts payable, and so on. Bear in mind that in some cases this can indicate that profit margins are too thin. Many companies fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that need to be fulfilled or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area attract brand-new consumers? Often times, businesses have repeat clients, which form the core of their daily earnings. Particular elements such as brand-new competitors sprouting up around the area, road construction, as well as employee turn over can affect repeat consumers and adversely impact future profits. One essential thing to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Clearly, the more people that see the business on a regular basis, the better the possibility to construct a returning customer base. A last thought is the basic area demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? Just how might the regional median home earnings impact future revenue potential?