Business Overview

This highly regarded bakery and cafe has been one of the most popular spots for years. It’s an excellent, high traffic location enabling current and new customers easy access. On average, the Business serves 100 to 150 customers per day.  It is locally owned and operated. It has a loyal following, long-term staff and is known for outstanding food served at reasonable prices.

Great opportunity for a buyer looking for a business that can be fairly easily duplicated and expanded with additional locations.

Financial

  • Asking Price: $175,000
  • Cash Flow: $77,000
  • Gross Revenue: $670,000
  • EBITDA: N/A
  • FF&E: $25,000
  • Inventory: $7,000
  • Inventory Included: N/A
  • Established: N/A
About The Facility:

The bakery and cafe is approximately 1,000 square feet with ample parking. It has excellent street visibility and is in a high traffic area.  It has a very busy morning and lunch crowd.

Is Support & Training Included:

Seller is willing to stay on to assist in support and training.

Purpose For Selling:

Divestiture

Pros and Cons:

Competition exists in the area but plenty of room for growth.

Opportunities and Growth:

Significant opportunities exist to grow the business.  The Seller has outlined many of them in the confidential package.

Additional Info

The transaction doesn't include inventory valued at $7,000*, which ins't included in the listing price.

The real estate is leased by the business for $0.00

Why is the Current Owner Selling The Business?

There are all sorts of reasons people resolve to sell operating businesses. Nevertheless, the real reason and the one they tell you may be 2 totally different things. As an example, they might say "I have too many various obligations" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these might simply be justifications to try to hide the reality of changing demographics, increased competitors, recent reduction in revenues, or an array of various other reasons. This is why it is really important that you not depend totally on a seller's word, but rather, utilize the vendor's response in conjunction with your overall due diligence. This will paint a much more reasonable picture of the business's present situation.

Existing Debts and Future Obligations

If the existing company is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many operating businesses take out loans in order to cover points such as inventory, payroll, accounts payable, and so on. Keep in mind that occasionally this can suggest that profit margins are too thin. Many businesses fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that must be met or might cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location bring in new customers? Many times, operating businesses have repeat clients, which form the core of their everyday revenues. Specific aspects such as brand-new competitors growing up around the location, road construction, and personnel turn over can affect repeat customers and also negatively impact future profits. One important point to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business on a regular basis, the better the chance to develop a returning client base. A last idea is the basic location demographics. Is the business located in a densely populated city, or is it situated on the edge of town? Just how might the regional average family income impact future earnings potential?