Listing ID: 77127
Here’s a great opportunity for an energetic entrepreneur to either continue with what the owner has built or change to another concept. Everything that’s needed to start and run a restaurant is already in place. The owner is retiring but he realizes that with increased hours, and adding draft beer and wine, a new owner can turn this into a profitable enterprise.
This restaurant is in Petaluma.
The restaurant is 1500 sq feet, with a shared patio next door for outdoor eating and drinking. The current lease has another five years, with one seven-year option. The rent is reasonable, and includes NNN. There is extensive parking in the center’s lot.
The price includes fixtures, furniture, a new floor installed by the current owner, a brand-new glycol system for draft beer, goodwill, training, trade name (if desired). A full list of equipment will be provided upon request.
This is a turnkey opportunity
- Asking Price: $149,000
- Cash Flow: N/A
- Gross Revenue: $462,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
The real estate is leased by the business for $0.00
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell businesses. Nevertheless, the real reason vs the one they tell you might be 2 totally different things. For instance, they may claim "I have a lot of other commitments" or "I am retiring". For many sellers, these factors stand. But also, for some, these may simply be justifications to attempt to conceal the reality of transforming demographics, increased competition, current reduction in revenues, or an array of other factors. This is why it is extremely crucial that you not depend entirely on a vendor's word, but rather, make use of the seller's response combined with your general due diligence. This will paint a much more sensible picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Many companies borrow money so as to cover points such as stock, payroll, accounts payable, so on and so forth. Remember that in some cases this can suggest that profit margins are too tight. Numerous businesses fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that have to be met or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location attract new consumers? Often times, operating businesses have repeat consumers, which develop the core of their daily earnings. Certain factors such as brand-new competitors growing up around the area, roadway building, as well as employee turn over can influence repeat customers and negatively impact future revenues. One vital thing 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? Undoubtedly, the more individuals that see the business regularly, the better the possibility to build a returning client base. A final thought is the basic area demographics. Is the business located in a densely inhabited city, or is it situated on the outskirts of town? Just how might the regional average home income influence future revenue potential?