Listing ID: 80725
This famous restaurant has been established for over 10 years with a focus on food of uncompromising freshness and quality along with a 100% commitment to customer satisfaction. The staff of 20 employees includes eight full time and 12 part-timers known for being friendly, courteous and customer service oriented. Their large unique menu of classic American style offerings has a loyal following of faithful customers. The dining room is a warm, inviting atmosphere that emanates the culture and history of the American past. Patrons can order from the convenient drive-thru, enjoy their meal in the dining area or the popular patio. The restaurant is a landmark destination for locals and travelers alike; there simply isn’t another restaurant like it.
- Asking Price: $410,000
- Cash Flow: N/A
- Gross Revenue: $1,157,139
- EBITDA: N/A
- FF&E: $143,450
- Inventory: $20,000
- Inventory Included: Yes
- Established: N/A
The location is on a high traffic corridor in one of the wealthiest demographic areas in the Valley. The site is a freestanding building with indoor seating for 56, large patio area and drive-in with a large kitchen designed for high volume. The building is approximately 3,000 square feet and leases for $4,408.66 per month plus NNN expenses. There are approximately two years left on the current Lease.
The Owners enjoy operating the business but after over 30 years in the industry
Strengths include the many features of the location - indoor seating, patio and drive-in with easy access and plenty of parking. The geographic area is one of the top growth areas of the Treasure Valley. The concept has won numerous local and regional awards and has been voted “Treasure Valley’s Best” multiple times. This restaurant has a cult-like following of customers who love the old school vibe, unique delicious menu, generous portions, fair pricing and amazing desserts.
The ideal buyer would be any restaurateur interested in the iconic brand and format of the restaurant, or any operator seeking a rare drive-through location with indoor seating and patio area. THE POSSIBILITIES A new Owner could negotiate a Licensing Agreement for the current concept or bring in their own theme to this highly lucrative location that has all the attributes needed for success.
The deal does include inventory valued at $20,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell companies. Nonetheless, the genuine factor vs the one they say to you may be 2 entirely different things. As an example, they might say "I have a lot of other commitments" or "I am retiring". For numerous sellers, these factors stand. However, for some, these may just be justifications to attempt to conceal the reality of altering demographics, increased competition, current reduction in earnings, or an array of various other reasons. This is why it is very vital that you not rely absolutely on a vendor's word, however rather, utilize the seller's solution in conjunction with your overall due diligence. This will repaint an extra realistic picture of the business's current situation.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Numerous businesses borrow money with the purpose of covering items such as supplies, payroll, accounts payable, etc. Keep in mind that in some cases this can suggest that profit margins are too small. Lots of businesses fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally 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 vendors that have to be satisfied or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in new clients? Often times, companies have repeat clients, which form the core of their daily earnings. Specific elements such as brand-new competition growing up around the area, road construction, and staff turn over can affect repeat consumers as well as negatively affect future revenues. One essential point to consider is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business on a regular basis, the greater the chance to build a returning consumer base. A last idea is the general area demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? Just how might the regional typical household income impact future earnings potential?