Listing ID: 78951
Popular Bar & Grill for over 30 years.
ADDRESS: Massachusetts Avenue, Cambridge, MA
LOCATION: Located in a popular square with numerous restaurants, retail shops, student apartments, office buildings and neighborhood bars.
SPACE: Approximately 3,000 square feet.
SEATING: There is seating for 125 patrons.
HOURS: Currently open Wednesday: 4:00PM – 1:00AM Thursday – Saturday: 11:00AM until 2:00AM.
LICENSES: There is a Full Liquor License with service available until 2:00 AM
LAYOUT: The restaurant features a bar & lounge area, a dining area, open kitchen with a take-out section.
SALES: Historic sales have been over $1,100,000.
LEASE TERM: The landlord may negotiate a long-term lease for a qualified tenant.
RENT: Estimated occupancy costs: Base Rent: $5,250 mo., NNN / $63,000 +/- NNN.
NNN: The real estate taxes are approximately $ 750 mo.
PRICE: The asking price for the assets of the business is $175,000
COMMENT: This is a perfect location for a moderately priced tavern or bar and grill that appeals to both local residents, students, office workers and young professionals. There is potential to increase sales by extending the hours of operation and take-out.
Information is from sources that we deem reliable. No representation is made as to the accuracy of any information provided. Offering is subject to prior sale, lease, or withdrawal without notice or change in prices and conditions.
- Asking Price: $175,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell operating businesses. However, the real factor vs the one they say to you might be 2 completely different things. As an example, they might claim "I have a lot of various responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these may just be excuses to try to conceal the reality of changing demographics, increased competition, recent decrease in incomes, or a variety of other factors. This is why it is really vital that you not rely entirely on a seller's word, but rather, use the vendor's answer in conjunction with your overall due diligence. This will paint an extra sensible picture of the business's present circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous operating businesses borrow money so as to cover items like inventory, payroll, accounts payable, etc. Remember that sometimes this can mean that profit margins are too thin. Many companies come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that have to be fulfilled or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location attract new consumers? Most times, businesses have repeat clients, which form the core of their day-to-day revenues. Particular factors such as new competition sprouting up around the area, roadway construction, and employee turn over can affect repeat customers and negatively impact future profits. One important thing to take into consideration is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Obviously, the more people that see the business often, the greater the chance to build a returning customer base. A last thought is the general location demographics. Is the business located in a densely inhabited city, or is it located on the edge of town? How might the local mean family earnings influence future earnings prospects?