Business Overview

This well-established family operated Greater Costa Mesa area restaurant and bar has been a customer favorite for over 5 decades and is being offered for the first time! The spacious venue, that has become a brand name to everyone in the area, boasts a
remarkable long-standing anchor location in a major shopping center. The restaurant has several sections, that not only allow for efficient operations but also provide a convenient way to section off areas for banquets, large parties or special events. The bar is similarly separated, and could even operate as a stand-alone profit center.

Financial

  • Asking Price: $1,200,000
  • Cash Flow: $274,091
  • Gross Revenue: $2,281,442
  • EBITDA: $147,024
  • FF&E: $100,000
  • Inventory: $20,000
  • Inventory Included: N/A
  • Established: 1966

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:4,000
  • Lot Size:N/A
  • Total Number of Employees:45
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This 4,000 square foot venue leases for $9,000 per month plus $1.2k in common area maintenance (CAM) expense on a lease until 1/3/1/24 with one existing 5 year option. All of the business’s furniture, fixtures, equipment, Type 47 Liquor License, tremendous goodwill and trademarked name and related names will be included in the sale. The owner recently upgraded the premises and infrastructure at a cost of over $500,000. Also, a new roof was completed within the past year. An estimated $20,000 in liquor 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:

Retirement

Pros and Cons:

While there are no shortage of restaurants in the greater Costa Mesa– Huntington Beach corridor, this venue has been a perennial favorite for over 50 years, making it the incumbent and most established market leader. Its name brand, decades of goodwill, spacious parking lot shared in a center with high traffic anchor tenants, freeway accessibility and main street drive-by visibility all create the perfect storm of restaurant attributes that provide this venue an unmatched competitive advantage.

Opportunities and Growth:

This well-established venue has recently undergone a comprehensive remodel during the COVID induced slow-down. As a result, the venue has recovered and is surpassing its already impressive historical performance. Though it has been a family operated business, the operation may benefit from a full-time working owner-operator that has hospitality industry experience and is able to minimize expenses while bolstering the establishment’s already stellar revenues. The bar portion of the operation naturally enjoys the highest margins. This portion of the business may present the greatest opportunity for new management to quickly enhance profits even further.

Additional Info

The company was founded in 1966, making the business 56 years old.
The deal won't include inventory valued at $20,000*, which ins't included in the requested price.

The business has 45 employees and resides in a building with estimated square footage of 4,000 sq ft.
The property is leased by the company for $10,200 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals resolve to sell companies. However, the genuine reason and the one they say to you may be 2 absolutely different things. As an example, they may say "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these factors stand. However, for some, these might just be justifications to try to conceal the reality of transforming demographics, increased competitors, current decrease in profits, or a variety of other reasons. This is why it is very essential that you not count totally on a vendor's word, however rather, utilize the seller's solution together with your overall due diligence. This will repaint a more realistic picture of the business's current circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of businesses finance loans in order to cover points like stock, payroll, accounts payable, so on and so forth. Remember that in some cases this can imply that earnings margins are too small. Numerous businesses come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that have to be satisfied or might lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location draw in new customers? Many times, companies have repeat customers, which form the core of their day-to-day profits. Particular factors such as brand-new competitors sprouting up around the location, roadway building and construction, and also employee turnover can affect repeat consumers and also adversely affect future revenues. One crucial point 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? Certainly, the more individuals that see the business often, the greater the opportunity to develop a returning consumer base. A last thought is the general area demographics. Is the business situated in a densely populated city, or is it located on the outside border of town? Just how might the neighborhood mean household earnings effect future earnings potential?