Listing ID: 78977
ADDRESS: Peabody, Massachusetts 01960
CONCEPT: A casual theme, moderately priced bar & grill.
SIZE: The restaurant is approximately 3,000 square feet, with a full basement. The space consists of a dining room, a bar with 26 seats, a kitchen, restrooms and full basement (used for refrigeration, storage and an office).
SEATING: The restaurant is licensed for 130 patrons.
LICENSES: There is an All Alcoholic Beverage License.
HOURS: Open for dinner only Sunday – Friday. Saturday: Lunch & Dinner
BASE RENT: Base rent is currently $4,900 mo. / Annual rent is currently $58,800 year (Includes Real Estate Taxes)
LEASE TERM: There are approximately seven (7) years remaining, plus an option for five (5) years.
SALES: Sales in 2019 were approximately $772,168.
CONDITION: The facility appears to be in very good condition and the space is adaptable to multiple concepts. The seller’s investment was approximately $1,000,000.
PRICE: Given the level of investment, the quality of the build-out and the potential for sales growth, the asking price for the assets is $350,000.
COMMENTS: This is a great opportunity for a working owner/operator. The space is adaptable for multiple concepts; such as, a bar & grill, sports bar, etc. There is potential to increase sales by extending the hours of operation.
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: $350,000
- 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 people decide to sell companies. However, the true factor and the one they tell you may be 2 totally different things. As an example, they might state "I have a lot of other commitments" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these might simply be excuses to try to conceal the reality of altering demographics, increased competitors, recent decrease in revenues, or an array of various other factors. This is why it is very vital that you not rely completely on a vendor's word, but instead, use the seller's answer along with your total due diligence. This will paint an extra sensible image of the business's current scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses borrow money with the purpose of covering items such as inventory, payroll, accounts payable, so on and so forth. Remember that sometimes this can mean that revenue margins are too tight. Numerous companies fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that have to be satisfied or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location bring in new customers? Many times, companies have repeat clients, which create the core of their everyday revenues. Particular variables such as new competitors sprouting up around the area, roadway building and construction, and also personnel turnover can impact repeat customers as well as negatively influence future profits. One essential point to think about is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Certainly, the more individuals that see the business regularly, the higher the chance to develop a returning client base. A last thought is the general location demographics. Is the business placed in a largely inhabited city, or is it situated on the outside border of town? Just how might the regional mean family income impact future revenue prospects?