Listing ID: 80467
Business Overview
Excellent Quality Pizza/Italian Franchise in Excellent Area in NW Metro Atlanta
The Restaurant has Excellent Revenue/Excellent Profit! The Price has been reduced to sell for a qualified buyer!
Established and profitable existing restaurant.
An Owner-Operator is needed for the Franchise Transfer of an excellent Johnny’s Pizza Franchise.
There will be a $7500 training and transfer fee. The new $30,000 new Franchise fee will not be required.
The organization is looking for a new owner-operator that can qualify and train through the Johnny’s Franchise Organization. No experience is necessary and the Johnny’s Franchise Organization will provide training.
Buyer must qualify through Johnny’s Franchise Organization to be considered.
Financial
- Asking Price: $355,000
- Cash Flow: $150,000
- Gross Revenue: $900,000
- EBITDA: N/A
- FF&E: $100,000
- Inventory: $5,000
- Inventory Included: N/A
- Established: N/A
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,300
- Lot Size:N/A
- Total Number of Employees:26
- Furniture, Fixtures and Equipment:N/A
Strip Center
Transition and Johnny's Franchise will Train
Owner has another business that is requiring his time.
Restaurant sales are already good, the plan should be to continue and grow the established of local customers and build more customers in order to increase overall revenue. The focus is on going beyond guest expectations with our excellent food and service. Marketing did well during the past crazy year and continues to do as people get back to work as things normalize.
This is an Excellent Demographic in a growing area. The INDUSTRY TREND shows that with the acceptance of curbside pickup, delivery services, and less cash (more charges), this business will be able to increase its selling multiple above past benchmarks. "Closures of hometown pizzerias often made headlines this year, (note that this restaurant continued to thrive) but newcomers waited in the wings. CHD Expert found that the total number of pizza locations nationwide actually went up—from 77,724 to 78,092, a nudge of 0.47%. The number of independent pizzerias rose from 41,573 to 41,879, while the chains added a few stores, too, from 36,151 to 36,213. In other words, the pizza industry as a whole turned out to be both recession-proof and pandemic-proof. Sadly, we can’t say the same for non-pizza restaurants.... "'COVID-19 has accelerated the growth of the delivery space [by] several years,' says Alex Blum, founder and CEO of Relay, a back-end delivery service that offers an alternative to third-party giants like Grubhub and Uber Eats....'Five years from now, it will be rare to find a restaurant that does not offer delivery in some capacity,' Blum says." Source: "The 2021 Pizza Power Report: How Pizzeria Operators Can Thrive in the Coming Year" by Rick Hynum, https://www.pmq.com/pizza-power-report-2021/ "High-end pizza restaurants are offering more gourmet items with organic ingredients for health-conscious consumers. The ubiquitous adoption of the internet has driven this trend of online ordering. Higher demand for industry offerings has spurred a steady stream of new entrants. Pizza chains catering to lower incomes are competing in a highly saturated marketplace. Pizza restaurants will continue to encounter competition from alternative retail outlets. The industry will continue to deal with rising input prices, especially fresh meats. Changing consumer preferences have forced pizza restaurants to adapt over the past five years." Source: IBISWorld Industry at a Glance Growing business for pickup and takeout This is a very crowded industry segment so there will be constantly fighting for the customers.
Additional Info
The sale doesn't include inventory valued at $5,000*, which ins't included in the asking price.
The business has 26 employees and is situated in a building with approx. square footage of 3,300 sq ft.
The real estate is leased by the business for $5,060 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell operating businesses. Nevertheless, the true reason vs the one they say to you might be 2 absolutely different things. As an example, they may say "I have too many various commitments" or "I am retiring". For lots of sellers, these reasons stand. But also, for some, these might just be justifications to attempt to hide the reality of altering demographics, increased competition, recent decrease in revenues, or a range of other reasons. This is why it is really important that you not depend absolutely on a seller's word, but instead, use the vendor's response in conjunction with your total due diligence. This will paint a much more sensible picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many operating businesses finance loans so as to cover points like supplies, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can imply that profit margins are too thin. Many companies fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that must be met or may cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area attract brand-new consumers? Many times, operating businesses have repeat customers, which develop the core of their daily earnings. Certain variables such as new competition growing up around the location, roadway building and construction, as well as employee turnover can impact repeat customers as well as negatively affect future revenues. One essential point to think about is the location of the business. Is it in a very 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 build a returning client base. A final idea is the basic area demographics. Is the business situated in a densely inhabited city, or is it located on the outskirts of town? Exactly how might the regional average household earnings influence future revenue potential?
