Listing ID: 77104
This caterer began 11+ years ago at catering ground zero: a talented chef bored of the same-old catering that dulled the mind and the taste buds. So he gathered a team of professionals, and before he knew it, a full-service caterer was born. The company quickly developed a reputation in the competitive Los Angeles market: from sumptuous feasts to chic receptions to the simplest affair, they were high in demand as their reputation grew. Over the years they became something more as they worked with A-List clients at the most exclusive venues. They purchased another well-known brand for their clientele and in-house talent, then acquired a third caterer for the same, plus their incredible catering facility. Three brands under one roof that target high-end events as well as the residential and corporate markets. Each brand is so well established, their history speaks volumes – all business is referral or past clientele. This commercial kitchen is the stuff of catering dreams: you can easily scale to $10 million in this 4000sf kitchen, with huge storage, a private driveway and 1300sf of office space. You’ll cater out of this building for the life of your company!
The owner needs to focus on growing his (non-food) businesses, so it’s time for him to pass the catering reins to a successor with the right experience, dedication to good food, and great energy. It’s no secret that the catering industry has been hard-hit by COVID, but that’s the opportunity. Their A+ brand-name client base, heavily embedded in LA’s most name-brand corporate and institutional clientele, would take years to break into. Give their book of business a home, nurture it patiently as we reemerge from COVID (while making a reasonable profit along the way) and you’ll be in the pole position for huge profits when the events come back. Timing is the opportunity: buy the book today (it netted $561K on $1.65M in 2019) for a fraction of the price it would demand when catering returns to normal.
Rarely is a premier So Cal caterer available to purchase, but this premier catering company is on the market today. If you’ve been looking to expand into high-end of the market, this is the opportunity is for you. Reach out to the Agent today!
- Asking Price: $299,000
- Cash Flow: $169,202
- Gross Revenue: $535,407
- EBITDA: N/A
- FF&E: N/A
- Inventory: $15,000
- Inventory Included: N/A
- Established: 2010
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:5,858
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
Huge dual dream catering kitchen! Plenty of walk-in freezer and refrigeration!
Focusing on other (non-food) businesses
The venture was established in 2010, making the business 12 years old.
The transaction shall not include inventory valued at $15,000*, which ins't included in the asking price.
The business has 10 employees and resides in a building with approx. square footage of 5,858 sq ft.
The real estate is leased by the company for $10,000 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people choose to sell businesses. Nevertheless, the true factor vs the one they tell you might be 2 absolutely different things. As an example, they might claim "I have a lot of various obligations" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may just be excuses to attempt to hide the reality of changing demographics, increased competitors, recent decrease in revenues, or an array of other factors. This is why it is really vital that you not rely entirely on a seller's word, however instead, make use of the vendor's response in conjunction with your overall due diligence. This will repaint an extra practical image of the business's current scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Many companies finance loans so as to cover items like stock, payroll, accounts payable, etc. Keep in mind that occasionally this can indicate that profit margins are too tight. Numerous businesses fall under 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 may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that should be fulfilled or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area bring in new clients? Many times, businesses have repeat consumers, which create the core of their day-to-day earnings. Particular variables such as new competition sprouting up around the location, road construction, and personnel turn over can affect repeat consumers as well as adversely influence future incomes. One important thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business often, the better the chance to construct a returning consumer base. A final thought is the basic location demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? How might the local average household income impact future earnings prospects?