Listing ID: 76895
This Santa Ana Restaurant and Bar is located in the heart of its popular historic district. The venue boasts a versatile layout in a prime location with liquor, sidewalk seating, convenient access and stellar street visibility. This is an asset only sale; the name, menu and concept will not be included in the sale.
- Asking Price: $199,000
- Cash Flow: $1
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: $30,000
- Inventory: $5,000
- Inventory Included: N/A
- Established: 2017
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,600
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
This 2,600 square foot venue plus patio leases for $8,112 per month including common area maintenance (CAM) expense on a lease until 1/3/1/24 with one 5-year option. All of the business’s furniture, fixtures, equipment, Type 47 Liquor License and lease will be included in the sale. An estimated $5,000 in liquor inventory will be sold at cost at close in addition to purchase price.
The owner will train for 2 weeks at 20 hours per week.
Downtown Santa Ana is a highly popular dining and entertainment district. As such competition certainly exists, however this venue’s location, layout and favorable characteristics and entitlements provide it highly attractive competitive attributes.
New operators may take this clean, attractive build-out, versatile layout, and prime location in any number of directions with a wide variety of concepts. The condition use permit (CUP) allows for alcohol service from 8 am to 12 midnight 7 days per week (no live entertainment), which is a coveted entitlement – though the venue’s licensing ensure that it should maintain a food / restaurant driven concept as opposed to a pure play bar.
The venture was established in 2017, making the business 5 years old.
The transaction doesn't include inventory valued at $5,000*, which ins't included in the listing price.
The real estate is leased by the company for $8,112 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals decide to sell operating businesses. Nonetheless, the real reason vs the one they say to you may be 2 entirely different things. As an example, they might state "I have way too many various obligations" or "I am retiring". For lots of sellers, these factors stand. However, for some, these may simply be reasons to try to conceal the reality of altering demographics, increased competitors, recent decrease in revenues, or a range of other reasons. This is why it is very important that you not depend entirely on a seller's word, yet rather, use the seller's answer combined with your overall due diligence. This will paint a more sensible picture of the business's existing scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies take out loans in order to cover things like supplies, payroll, accounts payable, and so on. Bear in mind that in some cases this can suggest that revenue margins are too thin. Lots of 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 think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that need to be satisfied or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area attract new consumers? Most times, businesses have repeat consumers, which form the core of their daily profits. Particular variables such as brand-new competition sprouting up around the location, roadway building and construction, and personnel turnover can influence repeat clients and negatively affect future revenues. One essential thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Certainly, the more individuals that see the business regularly, the greater the opportunity to construct a returning client base. A final idea is the basic area demographics. Is the business located in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the regional median family income effect future revenue potential?