Listing ID: 79087
PRICE REDUCED BY MOTIVATED SELLER! This restaurant was established nearly 40 years ago by the current owner. The business operates as a Sole Proprietorship. The real estate is also owned by the sellers under a separate entity and is available for $550,000 should a buyer care to own rather than lease. The real estate also includes an apartment above the restaurant.
As of the end of October 2021, this restaurant has already surpassed 2019’s numbers with 2 months remaining. They survived 2020 intact and have flourished to the point of rebounding above and beyond their success pre-COVID. Employee morale is high, their core staff remains focused, and the concentration is on having fun with each other and with their customers. The result is evident in the incredible volume of business and steadily increasing profitability. This restaurant is a success story for the resiliency of well managed restaurants post COVID!
The restaurant, which is a landmark in its market area has been recognized nationally and statewide, and has received multiple awards of excellence.
Offered for sale is the business entity, including all tangible and intangible assets. The real estate could also be for sale for the right buyer looking to own rather than lease. The building is in very good condition and fully functional as an established restaurant with ample parking. This breakfast/lunch restaurant is a very popular destination for locals and visitors alike as it prides itself on serving some of the best homemade comfort food in New Hampshire served in a warm and comfortable environment. Loyalty of local families and businesses helps yield strong year-round numbers.
- Asking Price: $525,000
- Cash Flow: $175,130
- Gross Revenue: $953,811
- EBITDA: N/A
- FF&E: $126,360
- Inventory: $20,000
- Inventory Included: N/A
- Established: 1987
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:3,600
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
The building was originally built in 1950 with additions and improvements made in the last 10 years. It is kept in very good condition. The total area of the building is roughly 3600 square feet, with seating for 65. There is also an additional area that can be utilized for an extra dining room. There is ample parking on site.
The seller is willing to train for 30 days, at 5 hours per day at no charge.
The seller is looking to retire.
Although there are many dining options in the area which is part of the draw to the area, this restaurant has a niche market with its popular homemade breakfast and lunch offerings and the stellar reputation it has built up for almost 40 years. Competition is mostly from fast food and much smaller operations. Their established history at the same location brings folks back from year to year resulting in a very strong and consistently growing market share.
The owner strongly believes that business volumes will be greatly impacted by opening for dinner, procuring a liquor license, and utilizing additional space that is available but not being used. Creating an online ordering platform for take-out business would have a huge impact on business volumes and efficiency. Extending operating hours, particularly on the weekends, would also result in a greater volume of diners and increased profitability. The restaurant is fully equipped for outside catering, so increasing that market would not take a lot of capital investment but would have an instant impact on cost-controlled profitability.
The business was started in 1987, making the business 35 years old.
The deal won't include inventory valued at $20,000*, which ins't included in the suggested price.
The company has 12 employees and resides in a building with disclosed square footage of 3,600 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons people choose to sell companies. Nonetheless, the real reason vs the one they say to you might be 2 completely different things. As an example, they might say "I have too many other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these might simply be justifications to try to hide the reality of altering demographics, increased competitors, recent decrease in incomes, or a range of other reasons. This is why it is really crucial that you not count absolutely on a vendor's word, yet instead, utilize the vendor's response in conjunction with your general due diligence. This will paint a much more sensible image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of companies borrow money in order to cover items such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can imply that revenue margins are too small. Numerous organisations fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that should be satisfied or may lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area draw in new customers? Most times, companies have repeat consumers, which form the core of their daily profits. Particular elements such as brand-new competition sprouting up around the location, roadway building and construction, and also employee turnover can affect repeat consumers and adversely influence future incomes. One important point to consider is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more individuals that see the business often, the higher the opportunity to develop a returning customer base. A last thought is the general area demographics. Is the business located in a largely populated city, or is it located on the outside border of town? Exactly how might the regional mean house income effect future earnings prospects?