Listing ID: 77282
This is an amazing Delicatessen and Café that consistently produces income in the $1.8-$1.9 million dollar range in only approximately 1,760 Square Feet. Imagine long lines everyday for a business that has been established since 1993. This is truly a landmark Delicatessen and Cafe with a wonderful reputation in the community. Net income consistently has been in the $300,000 range even during COVID for the past 5 years. . There is a full time on site manager.
There are Six sandwich stations. They also have a sit down Café with outside seating that specializes in hot sandwiches. They also carry upscale gourmet foods and boutique California wines.
The business enjoys a great lease:
Rent including NNN: $8,659.40
Term: December 3, 2023 + 5 year option
January – August 2021 net income $219,493 on track to have $329,240 net income 2021. Last 5 years averaged over $300,000 net income and this year is best since open.
- Asking Price: $1,100,000
- Cash Flow: $329,240
- Gross Revenue: $1,853,219
- EBITDA: $329,240
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1993
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,760
- Lot Size:N/A
- Total Number of Employees:26
- Furniture, Fixtures and Equipment:N/A
High visibility corner location in the center of town. There are two entrances but it operates as one business with one kitchen, two bathrooms. Inside seating 31 and outside seating 53. Has a shared parking lot + street and city parking lots near by.
Owner will train
There are other sandwich places in the area but non of them can compare to the sales and net income of this business. Annualized net income through August 2021 is $329,240. Net income is Consistently over $300,000 annually for past 5 years. 2021 is best year since open.
Business could be expanded with more catering. And additional locations could be opened with the landmark brand that has been established.
The venture was started in 1993, making the business 29 years old.
The company has 26 employees and resides in a building with approx. square footage of 1,760 sq ft.
The building is leased by the business for $865,940 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell companies. However, the real factor and the one they say to you may be 2 totally different things. As an example, they might say "I have a lot of other commitments" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these may simply be excuses to attempt to conceal the reality of altering demographics, increased competitors, recent decrease in earnings, or an array of various other factors. This is why it is really crucial that you not count entirely on a seller's word, however rather, use the vendor's response along with your overall due diligence. This will repaint a much more practical picture of the business's current situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Lots of businesses borrow money with the purpose of covering items such as stock, payroll, accounts payable, etc. Keep in mind that occasionally this can indicate that revenue margins are too thin. Lots of companies come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that need to be fulfilled or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area bring in new customers? Many times, businesses have repeat consumers, which form the core of their daily earnings. Certain variables such as new competition growing up around the location, roadway building and construction, as well as personnel turnover can impact repeat customers as well as adversely impact future revenues. One essential thing to think about is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business regularly, the better the opportunity to construct a returning client base. A final idea is the basic location demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? Just how might the neighborhood mean house income effect future revenue prospects?