Listing ID: 79127
This well-established Mexican restaurant has been in existence since 1993, created by the current owner. The business operates as a Limited Liability Corporation. The real estate is also owned by the seller under a separate entity, and although it is not included in the listing price of the business, the seller would certainly entertain offers should a buyer be interested.
The restaurant is the most popular Mexican Restaurant in the Mount Washington Valley, proudly offering quality, authentic delicious Mexican cuisine in a festive, fun, and colorful atmosphere. Conveniently located with excellent visibility, the restaurant is easy to visit whether you are entering or leaving the Mount Washington Valley. This little piece of Mexico prides itself on appealing to loyal, repeat customers including visitors and locals alike. It continues to achieve their longstanding goal of providing reasonably priced, fresh, simple, and flavorful food and drink in a comfortable, festive atmosphere. Loyalty of local families and businesses helps yield strong year-round numbers.
2020 was certainly a challenge due to COVID 19 restrictions but the restaurant has rebounded extremely well in 2021, despite having to close for a period due to road construction taking place in front of the business, which has now been completed.
Offered for sale is the business entity, including all tangible and intangible assets. The building is in good condition and fully functional as an established restaurant with both on-site and on-street parking. This is an established business in an established location with an established and loyal following.
- Asking Price: $150,000
- Cash Flow: $50,020
- Gross Revenue: $517,216
- EBITDA: N/A
- FF&E: $68,000
- Inventory: $10,000
- Inventory Included: N/A
- Established: 1993
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:4,400
- Lot Size:N/A
- Total Number of Employees:11
- Furniture, Fixtures and Equipment:N/A
The building consists of approximately 2600 finished square feet including dining room, bar area, lower accessible dining area, and kitchen/storage. There is also roughly 1800 square feet of basement storage space. There are 73 seats in the upper dining room and bar area and 35 seats in the lower accessible dining room.
The current owner is willing to stay on and train for two weeks after the transfer of the business at no charge and may be available on a paid consultant basis should that be important to the buyer.
The current owner is looking to retire after many years in business.
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 Mexican offerings. The restaurant has only one real competitor in the valley which is a chain Mexican restaurant which is not as established. Their established history at the same location brings folks back from year to year resulting in consistently strong market share.
The owner has thought about adding flat breads to enhance profitable offerings. Also, the bottom line could be greatly impacted by getting their homemade sauces and salsas into grocery and convenience stores. They also believe that by adding breakfast on weekends the bottom line would also be positively impacted and will attract a whole new audience.
The company was started in 1993, making the business 29 years old.
The deal won't include inventory valued at $10,000*, which ins't included in the asking price.
The company has 11 employees and resides in a building with estimated square footage of 4,400 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell operating businesses. Nevertheless, the real reason vs the one they tell you may be 2 entirely different things. For instance, they may state "I have too many other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these may simply be excuses to attempt to hide the reality of changing demographics, increased competitors, current decrease in earnings, or an array of other reasons. This is why it is very crucial that you not rely totally on a vendor's word, but instead, use the vendor's answer along with your overall due diligence. This will repaint a much more realistic picture of the business's current scenario.
Existing Debts and Future Obligations
If the current business is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses take out loans in order to cover points such as inventory, payroll, accounts payable, so on and so forth. Remember that occasionally this can imply that profit margins are too small. Numerous companies fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that have to be satisfied or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area draw in brand-new customers? Many times, businesses have repeat customers, which develop the core of their daily revenues. Particular factors such as brand-new competition sprouting up around the location, road building, and also personnel turnover can influence repeat consumers and also adversely affect future earnings. One essential thing to consider is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Certainly, the more people that see the business regularly, the better the chance to develop a returning customer base. A last idea is the general area demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? How might the neighborhood typical household earnings impact future revenue prospects?