Listing ID: 80943
Business Overview
This is a rare opportunity to purchase an iconic and well-known Treasure Valley brand. This 10-year company is ripe for the right buyer to add locations and expand into other markets. The core menu items are wildly popular, with appeal to a broad demographic. A growing supplement to sales born out of the Covid era, the company generates approximately 15% of its revenue from online pre-orders and sales for pick up or delivery. Additionally, a potential high growth path can emerge from the company’s work with a packaging partner to sell one of its products over the internet and retail. There is too much infrastructure in place to describe in a brief narrative, but this company is built to and ready for growth.
The company is nearly fully staffed, but the company is always looking for enthusiastic ambassadors/employees. There are approximately eight full-time employees, including a general manager, pastry chef, sous chef and store managers. Additionally, the company has about 36 part-time employees. One owner primarily oversees operations by working with the managers working 20 to 40 hours a week. Another owner manages finances, growth initiatives, assists as necessary in management and works approximately 10 hours per week.
Financial
- Asking Price: $499,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: $305,000
- Inventory: $6,000
- Inventory Included: Yes
- Established: N/A
The company operates three locations plus two seasonal kiosks in addition to quality, longstanding wholesale accounts. The flagship location also serves as a central production facility. It is a leased location of more than 3,000 square feet. The second site is just over 1,500 square feet and is located on a major arterial. The third location is embedded in a high foot traffic special purpose building and benefits from not having any other food service competition immediately nearby.
The seller’s interest in selling is primarily driven by circumstances outside th
The business has a very strong and cool brand name. The business is completely locally scalable especially with the infrastructure in place. The seller believes the growth in the Treasure Valley can accommodate two additional locations. Additionally, the brand and business model can be exported into other cities. Perhaps franchise the concept? The company has good management depth and a trained staff.
The ideal buyer for the business is capitalized well enough to grow the business as described above. The business would also be an excellent add-on for an existing business operator experienced in multi-location food service and interested in leveraging the experience to a business that provides some diversification. The business is also a good fit for a hands-on operator who could do very well with the business as it exists now and work on optimizing its operations further to even greater profit levels.
Additional Info
The transaction does include inventory valued at $6,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all types of reasons people decide to sell businesses. However, the real reason and the one they tell you might be 2 entirely different things. As an example, they may say "I have a lot of other commitments" or "I am retiring". For many sellers, these factors stand. But also, for some, these may just be excuses to attempt to conceal the reality of changing demographics, increased competitors, current decrease in incomes, or a variety of other reasons. This is why it is extremely essential that you not rely entirely on a vendor's word, yet rather, use the vendor's solution along with your overall due diligence. This will paint a much more sensible picture of the business's existing scenario.
Existing Debts and Future Obligations
If the current business is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of operating businesses take out loans with the purpose of covering items such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can imply that earnings margins are too thin. Many companies come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that must be met or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area attract brand-new consumers? Often times, operating businesses have repeat customers, which create the core of their daily earnings. Specific factors such as new competition sprouting up around the location, roadway building, and also employee turnover can affect repeat consumers as well as adversely influence future incomes. One crucial point to consider is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business on a regular basis, the higher the opportunity to build a returning consumer base. A last thought is the basic area demographics. Is the business placed in a largely populated city, or is it located on the edge of town? Exactly how might the neighborhood typical household earnings effect future earnings potential?
