Listing ID: 76990
This Eagle Rock area restaurant boasts a modern, clean build-out with an open floor plan as well as stellar street visibility. The venue has multiple interior dining areas, each with its own unique ambiance. The fully outfitted kitchen has a walk-in cooler, while much of the food preparation occurs behind the open service counter. The venue has unique specialty cooking equipment.
- Asking Price: $150,000
- Cash Flow: $60,000
- Gross Revenue: $521,518
- EBITDA: $60,000
- FF&E: $40,000
- Inventory: $2,000
- Inventory Included: N/A
- Established: N/A
This 2,000 plus square foot space leases for $6,340 on a lease that expires in 2028 with one 5-year option. The venue has seating for 60 patrons inside. All of the business’s furniture, fixtures, equipment and goodwill will be included in the sale. Approximately $2,000 in inventory will be sold at cost at close.
Seller will train for 2 weeks at 20 hours per week or as negotiated.
This venue occupies a coveted location that provides it remarkable street visibility and convenience freeway and main street access. These qualities provide it a competitive advantage that other may find difficult to match.
New operators may continue with the current concept that has proven successful or they may capitalize on the venue’s attributes and versatility to launch any number of concepts that may thrive there. These may include quick service or fast casual restaurant concepts or a European style coffee house, amongst other possibilities.
The transaction won't include inventory valued at $2,000*, which ins't included in the listing price.
The property is leased by the company for $6,340 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell operating businesses. However, the true factor vs the one they say to you may be 2 completely different things. For instance, they may state "I have too many various obligations" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might just be excuses to attempt to conceal the reality of changing demographics, increased competition, recent reduction in revenues, or a variety of various other reasons. This is why it is extremely crucial that you not rely completely on a seller's word, yet instead, use the vendor's answer along with your general due diligence. This will paint an extra realistic image of the business's current scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous companies take out loans with the purpose of covering points like inventory, payroll, accounts payable, etc. Bear in mind that occasionally this can imply that profit margins are too tight. Many 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 tools or the building where the business resides. The business may have existing agreements with suppliers that have to be met or might result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area attract new consumers? Often times, businesses have repeat customers, which create the core of their daily profits. Certain variables such as brand-new competitors sprouting up around the area, road building, and staff turnover can impact repeat customers and negatively influence future revenues. One vital point to think about is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Certainly, the more people that see the business on a regular basis, the better the opportunity to construct a returning consumer base. A last thought is the general area demographics. Is the business located in a densely populated city, or is it located on the outside border of town? Just how might the local median home income influence future income potential?