Listing ID: 76971
This ultra-hip Culver City Area market with stellar street visibility, onsite parking, a beer and wine license that allows for both onsite and offsite consumption. The eclectic bohemian style market oozes with character and may be converted to any number of concepts. The venue has a full kitchen with a spacious walk-in cooler and separate walk-in freezer. The distinct build-out and versatile layout, kitchen equipment, deli counter set-up and more can be converted to a Gjusta or an Eataly style eatery with a variety of food offerings, with several vendor together and complementary specialty grocery offerings or even a hybrid of a grocery story with multiple food vendors in the vein of downtown’s famous Grand Central Market or Culver City’s customer embraced Citizen Public Market.
- Asking Price: $175,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
This 5,000 square foot facility with onsite parking has a new 10-year lease until 7/31/30 with one 5 year option. The premise leases for $10,000 per month, with 3.0% annual increases. The venues current furniture, fixtures, equipment, and remaining associated goodwill will be included in the sale.
Though many grocery markets as well as specialty markets exist in all areas of metropolitan Los Angeles, few have the character this venue does or high discretionary income denizens the neighborhood boasts. The venue’s remarkable freeway access coupled with is street visibility and onsite parking provide it several distinct advantages that competitors may find it difficult to contend with.
New operators will want to fully understand not only the neighborhood’s demographic, but also that of the neighboring similarly high discretionary income communities, given the venue’s location on a major throughway enroute to 2 major freeways. In addition to the more innovative grocery and eatery style concepts noted above, new operators may wish to consider implementing a natural foods market, a bakery style concept (e.g. Portos), or even a high-end butcher shop in the vein of A Cut Above or Standings Butchery, that may include an onsite deli complete with charcuterie, artisanal cheeses, specialty wines, craft beers, with the related grocery accoutrements and more. Alternately, it could simply be a burgeoning neighborhood market that may command lower margins but achieve a larger reach.
The property is leased by the company for $10,000 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons people resolve to sell operating businesses. However, the real reason vs the one they say to you may be 2 entirely different things. As an example, they may claim "I have too many other responsibilities" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may simply be reasons to try to conceal the reality of transforming demographics, increased competitors, current decrease in earnings, or a range of other reasons. This is why it is very vital that you not rely absolutely on a vendor's word, however rather, make use of the seller's solution together with your overall due diligence. This will paint a much more practical picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses finance loans so as to cover things like supplies, payroll, accounts payable, and so on. Bear in mind that sometimes this can suggest that profit margins are too tight. Numerous organisations fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that should be satisfied or may cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location bring in brand-new clients? Often times, businesses have repeat clients, which create the core of their daily profits. Specific factors such as brand-new competitors sprouting up around the location, roadway building and construction, as well as employee turnover can affect repeat clients and negatively influence future profits. One crucial thing to think about is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more people that see the business regularly, the higher the chance to develop a returning consumer base. A final thought is the general area demographics. Is the business situated in a largely populated city, or is it situated on the outside border of town? Just how might the neighborhood mean house income effect future income prospects?