Business Overview

This super hip Highland Park area restaurant with liquor and a large outdoor patio is an extraordinarily enchanting venue in one of the city’s hottest areas. The unique venue has recently been entirely refurbished and a new conditional use permit was put in place to create its ambiance and signature vibe.

Financial

  • Asking Price: $375,000
  • Cash Flow: $191,549
  • Gross Revenue: $1,420,597
  • EBITDA: $191,549
  • FF&E: $30,000
  • Inventory: $17,000
  • Inventory Included: N/A
  • Established: 2012

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,148
  • Lot Size:N/A
  • Total Number of Employees:35
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The 2,468 square foot indoor-outdoor venue leases for a remarkable $3,536 per month on a lease until December 2022 with two 5-year options. All the business’s furniture, fixture, equipment, Type 47 Liquor License and goodwill be included in the sale. Approximately $17,000 in inventory will be sold at cost at close in addition to purchase price.

Is Support & Training Included:

The seller will train for 2 weeks at 20 hours per week.

Purpose For Selling:

Personal

Pros and Cons:

While competition in the immediate vicinity has increased, this venue has made a remarkable splash in a very short period. As a result, it has established itself and its concept. It stands out from direct competition on all fronts – from its unique buildout to its eclectic menu.

Opportunities and Growth:

As this establishment only operated with beer and wine since opening, the recent addition of a liquor license dramatically increases the venue’s options to bolster revenue and the high margin sales associated with spirit and specialty cocktail sales. New management may also revisit the venue’s labor expense, as it appears to represent 39% - 42% of considerable revenues (by comparison, rent is at 1.8% - 2.2%).

Additional Info

The company was founded in 2012, making the business 10 years old.
The transaction won't include inventory valued at $17,000*, which ins't included in the requested price.

The business has 35 employees and is situated in a building with disclosed square footage of 1,148 sq ft.
The building is leased by the company for $3,535 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals choose to sell operating businesses. Nonetheless, the real factor vs the one they say to you may be 2 entirely different things. For instance, they may state "I have too many other commitments" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may simply be reasons to try to conceal the reality of altering demographics, increased competitors, current reduction in revenues, or a variety of various other reasons. This is why it is really crucial that you not count completely on a seller's word, but rather, use the vendor's response together with your overall due diligence. This will paint a much more practical picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous companies borrow money in order to cover things such as supplies, payroll, accounts payable, and so on. Bear in mind that sometimes this can mean that revenue margins are too tight. Many organisations fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that should be fulfilled or might cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location bring in brand-new clients? Most times, businesses have repeat clients, which develop the core of their daily revenues. Particular factors such as brand-new competition sprouting up around the location, roadway building, and also personnel turn over can influence repeat consumers as well as adversely affect future incomes. One vital thing to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Certainly, the more individuals that see the business on a regular basis, the greater the opportunity to build a returning customer base. A final idea is the general area demographics. Is the business placed in a densely inhabited city, or is it situated on the outside border of town? Just how might the local average family earnings influence future income potential?