Listing ID: 76864
This Studio City Area Gastropub boasts a well-appointed, no-expense sparred buildout what has culminated in a gorgeous, highly versatile, first-class dining, bar and entertainment venue. The facility maintains 4.5 star Yelp reviews as a customer service orientation and the utmost attention to detail has going into the training, the menu and back of house operations, and the striking build-out.
- Asking Price: $450,000
- Cash Flow: N/A
- Gross Revenue: $1,200,000
- EBITDA: N/A
- FF&E: $50,000
- Inventory: $5,000
- Inventory Included: N/A
- Established: 2018
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,875
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
This 2,875 square foot (plus outdoor area) venue leases for $9,200 per month including triple net (NNN) expenses, on a lease until 3/31/25 with two 5-year options. All of the business’s furniture, fixtures, equipment and Type 47 Liquor License will be included in the sale, with a new conditional use permit (CUP) that provides for alcohol service from 10 am to 2 am. An estimated $5,000 in inventory will be sold at cost at close.
Seller will train for 2 weeks at 20 hours per week.
Due to this market’s highly popular location, competition naturally exists. With that said, this venue clearly stands out among the local competition as well as that in the neighboring Burbank, Studio City and Sherman Oaks communities.
New management may capitalize on this venue’s popular location, liquor license and versatile layout and branding to carry the well-thought-out concept forward, adopt to an existing concept or to introduce a new one. As revenue and expense controls are an integral part of any hospitality operation, the business would likely benefit from an experienced bar operator or onsite working owner.
The venture was established in 2018, making the business 4 years old.
The deal won't include inventory valued at $5,000*, which ins't included in the asking price.
The property is leased by the business for $9,200 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people resolve to sell companies. Nevertheless, the genuine reason and the one they tell you might be 2 completely different things. For instance, they may state "I have a lot of various commitments" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these might just be excuses to try to hide the reality of altering demographics, increased competitors, recent reduction in incomes, or an array of other factors. This is why it is extremely vital that you not rely completely on a seller's word, however rather, utilize the vendor's answer combined with your general due diligence. This will repaint a much more sensible image of the business's current scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your offer. Numerous companies take out loans with the purpose of covering items such as supplies, payroll, accounts payable, so on and so forth. Remember that occasionally this can imply that revenue margins are too small. Lots of companies 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 think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that must be fulfilled or might result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location attract brand-new clients? Most times, businesses have repeat clients, which form the core of their daily profits. Particular factors such as brand-new competitors sprouting up around the area, road building, and personnel turnover can influence repeat consumers and also negatively influence future earnings. One important thing to consider is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Certainly, the more individuals that see the business on a regular basis, the better the possibility to construct a returning consumer base. A final idea is the general area demographics. Is the business located in a largely populated city, or is it situated on the outside border of town? Just how might the local median house income effect future income prospects?