Listing ID: 79395
Restaurant is located in top area of Pinellas Cty. The restaurant has 60 seats in and 60 seats out, Hours are 9a-9p six days a week, closed Sunday. The establishment is 3000 sq/ft with large kitchen. Has eight employees with $6000 per wk payroll not including owner.
- Asking Price: $425,000
- Cash Flow: $210,000
- Gross Revenue: $1,000,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1982
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,000
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
In excellent shape
Will stay one mth
The business was founded in 1982, making the business 40 years old.
The company has 8 employees and resides in a building with approx. square footage of 3,000 sq ft.
The building is leased by the business for $5,100 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell operating businesses. Nonetheless, the true factor and the one they say to you might be 2 totally different things. For instance, they may state "I have too many other commitments" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these may simply be excuses to attempt to conceal the reality of altering demographics, increased competitors, recent decrease in incomes, or an array of various other factors. This is why it is really essential that you not rely totally on a seller's word, but instead, utilize the seller's response together with your general due diligence. This will repaint an extra reasonable image of the business's current situation.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Lots of operating businesses borrow money with the purpose of covering items like supplies, payroll, accounts payable, and so on. Keep in mind that in some cases this can suggest that earnings margins are too tight. Lots of companies fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that must be met or might result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area bring in new customers? Most times, operating businesses have repeat consumers, which develop the core of their daily revenues. Specific variables such as brand-new competitors growing up around the location, roadway building and construction, as well as staff turnover can affect repeat consumers and also adversely affect future revenues. One vital thing to consider is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business on a regular basis, the greater the opportunity to build a returning customer base. A last thought is the general location demographics. Is the business situated in a largely populated city, or is it located on the edge of town? Just how might the regional median family earnings effect future revenue prospects?