Listing ID: 80741
Business Overview
This restaurant has been in continuous operation since 1980 offering breakfast, lunch and dinner alongside a newly remodeled full service lounge with large screen TVs. There is also a private banquet facility for up to 50 people. The busy location serves a diverse group of loyal customers from city, state and federal agencies, locals and seasonal clientele. Customers enjoy great food and service from a loyal staff; many have been with the business for over 20 years.
Financial
- Asking Price: $190,000
- Cash Flow: N/A
- Gross Revenue: $653,055
- EBITDA: N/A
- FF&E: $249,000
- Inventory: $7,000
- Inventory Included: Yes
- Established: N/A
The freestanding building is approximately 6,277 square feet with a large parking area and easy access. A well maintained exterior has mature landscaping. The interior has a nice layout with a large capacity kitchen and comfortable atmosphere. The building leases for a base rent of $5,865 per month and has approximately three years left on the lease plus one five year option to renew. The dining area has seating capacity of 110, lounge capacity of 50 and banquet room capacity of 50.
The owners are ready to sell and focus on another career path.
A few of the obvious strengths include a long established popular restaurant that is well known for excellent food, good value and attentive service any time of day or night. The high traffic area generates constant business from local customers, government agencies, surrounding businesses and people traveling in and out of the area. This proven concept has a loyal following of locals and travelers alike.
The ideal buyer would be any entrepreneur interested in continuing this successful concept. A local operator, or regional or national chain with a similar format should see the value in location, build-out, favorable lease and proven long term success. THE POSSIBILITIES Originally a franchise, the business enjoys built-in name recognition in the region that could be capitalized on by a new owner. The business is well positioned to take advantage of catering opportunities at nearby hotels and the resurgence in travel.
Additional Info
The deal does include inventory valued at $7,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people choose to sell companies. Nonetheless, the real reason and the one they say to you might be 2 totally different things. As an example, they might state "I have way too many various commitments" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might just be excuses to try to conceal the reality of transforming demographics, increased competition, current decrease in earnings, or an array of other reasons. This is why it is extremely important that you not count totally on a seller's word, yet rather, make use of the vendor's answer in conjunction with your overall due diligence. This will paint an extra realistic image of the business's existing scenario.
Existing Debts and Future Obligations
If the current company is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Many companies take out loans in order to cover points such as supplies, payroll, accounts payable, and so on. Remember that in some cases this can imply that profit margins are too thin. Many organisations fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that need to be fulfilled or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area attract new customers? Often times, operating businesses have repeat customers, which create the core of their daily profits. Specific aspects such as brand-new competition sprouting up around the location, roadway construction, as well as personnel turn over can influence repeat consumers and also negatively influence future revenues. One essential thing to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more individuals that see the business regularly, the higher the possibility to construct a returning consumer base. A last thought is the basic location demographics. Is the business situated in a densely inhabited city, or is it situated on the edge of town? How might the local typical family earnings influence future income potential?
