Listing ID: 77113
This bar and grill has been a successful, highly profitable, family-owned business for many years! The restaurant and bar feature an extensive food menu with many burgers, sandwich, entre, appetizer, and salad options. The beverage program is well-curated with a diverse selection of hand-crafted cocktails, local wines, and craft beers. In addition, the business offers catering services for birthdays, weddings, anniversaries, business functions, and holiday parties.
Evidenced of its popularity, this restaurant has profound page recognition on Facebook (e.g. likes, follows, check ins) and very strong Google and Yelp reviews. In addition, the website is beautifully developed.
Listed price includes Type-47 liquor license.
- Asking Price: $399,000
- Cash Flow: $165,000
- Gross Revenue: $814,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Seller owns the real property and will negotiate a new lease with gross rent at $7,000/mo.
The building is leased by the company for $7,000 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell companies. However, the true factor vs the one they tell you may be 2 entirely different things. As an example, they might claim "I have way too many other commitments" or "I am retiring". For many sellers, these factors stand. But also, for some, these may simply be reasons to try to hide the reality of altering demographics, increased competition, current reduction in earnings, or a variety of various other factors. This is why it is very important that you not rely completely on a seller's word, yet instead, use the vendor's solution together with your total due diligence. This will paint a much more realistic image of the business's present situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies borrow money so as to cover things like stock, payroll, accounts payable, and so on. Keep in mind that occasionally this can mean that earnings margins are too thin. Numerous companies come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that have to be satisfied or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location draw in brand-new clients? Many times, businesses have repeat consumers, which develop the core of their daily profits. Certain variables such as new competitors sprouting up around the location, road construction, as well as personnel turnover can affect repeat clients and adversely influence future earnings. One crucial thing to take into consideration is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business regularly, the better the possibility to develop a returning customer base. A final idea is the basic area demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? Exactly how might the local median home income impact future revenue potential?