Listing ID: 80613
Profitable, well established, turn key, east side restaurant, located in popular area of Kauai close to hotels and beaches. It’s a local hot spot that has a strong customer base of tourists and locals alike. The restaurant has excellent reviews, an attractive menu, as well as beer and wine offerings. There’s an additional 7 years available on the lease. Contact our office for more information!
- Asking Price: $475,000
- Cash Flow: $193,658
- Gross Revenue: $1,633,180
- EBITDA: N/A
- FF&E: $260,000
- Inventory: $14,000
- Inventory Included: Yes
- Established: 2017
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,000
- Lot Size:N/A
- Total Number of Employees:19
- Furniture, Fixtures and Equipment:N/A
3,000 sq Ft. restaurant space in desirable and popular east side Kauai location. Base rent at $3.10 PSF with percentage rent at 5%.
Owner willing to train new owner and assist with transition.
The company was founded in 2017, making the business 5 years old.
The deal shall include inventory valued at $14,000, which is included in the suggested price.
The company has 19 employees and resides in a building with disclosed square footage of 3,000 sq ft.
The property is leased by the business for $9,300 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons individuals choose to sell operating businesses. However, the true reason and the one they tell you may be 2 totally different things. As an example, they may say "I have too many other responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these might just be reasons to attempt to conceal the reality of altering demographics, increased competition, recent reduction in revenues, or an array of other reasons. This is why it is really essential that you not count absolutely on a seller's word, yet rather, utilize the vendor's response together with your general due diligence. This will paint a much more sensible image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Lots of operating businesses take out loans with the purpose of covering things like supplies, payroll, accounts payable, so on and so forth. Remember that sometimes this can imply that profit margins are too tight. Numerous companies fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to think about. 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 satisfied or may cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location draw in brand-new customers? Many times, companies have repeat customers, which create the core of their day-to-day revenues. Certain variables such as new competitors growing up around the location, roadway building, and personnel turn over can impact repeat clients and also negatively influence future earnings. One crucial thing to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Certainly, the more people that see the business regularly, the greater the possibility to develop a returning consumer base. A last thought is the general location demographics. Is the business located in a largely populated city, or is it located on the outskirts of town? Just how might the neighborhood mean family income impact future earnings prospects?