Listing ID: 81163
This Outstanding Restaurant offers the public a unique blend of beverages, pastries and a variety menu filled with all sorts of tasty menu items. Once you visit you will want to come back again and again. The Restaurant has been established approaching (8) years and has continued to grow year after year. Historically this restaurant has netted close to $155,000 annually. 2021 ended with a net income of $161,893. The owner works approx. (30) hours per week overseeing approx. (10) employees. The manager has been with the owner close to 7 years. SBA financing preapproved with approx. $85,000 down. Owner will stay on to train buyer for up to 60 days beginning from the close of escrow. Sales for 2021 where the highest ever. $688,071. Price is $460,000 plus inventory of approx. $25,000 Total $485,000
- Asking Price: $460,000
- Cash Flow: N/A
- Gross Revenue: $688,071
- EBITDA: $161,893
- FF&E: $50,000
- Inventory: $25,000
- Inventory Included: Yes
- Established: 2013
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,300
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
Building is 1,300 sq. ft. Seats approximately 50 people. Plenty of parking available. Landlord will negotiate (2) five year options.
Seller is willing to stay on with buyer for up to (60) days beginning from the close of escrow for training and support.
Seller is moving his family out of state.
Yes, there is always competition in the restaurant business.
For an owner operator working FULL TIME who wants to work hard and get involved in his community no doubt this business will continue to grow and prosper.
The business was established in 2013, making the business 9 years old.
The deal does include inventory valued at $25,000, which is included in the asking price.
The company has 10 employees and is located in a building with approx. square footage of 1,300 sq ft.
The property is leased by the company for $3,070 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people choose to sell companies. Nevertheless, the genuine reason and the one they tell you may be 2 completely different things. As an example, they may say "I have too many various responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may just be reasons to attempt to hide the reality of changing demographics, increased competition, recent reduction in incomes, or an array of various other factors. This is why it is extremely vital that you not rely entirely on a vendor's word, yet instead, make use of the vendor's solution together with your overall due diligence. This will repaint an extra practical image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses take out loans so as to cover items such as supplies, payroll, accounts payable, so on and so forth. Remember that sometimes this can mean that revenue margins are too thin. Lots of businesses come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that should be satisfied or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location attract new clients? Most times, businesses have repeat customers, which develop the core of their daily earnings. Particular variables such as new competition sprouting up around the area, roadway construction, and employee turnover can impact repeat customers and negatively influence future earnings. One important thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business often, the greater the possibility to build a returning customer base. A final thought is the general location demographics. Is the business situated in a densely populated city, or is it situated on the edge of town? Exactly how might the neighborhood typical household earnings influence future income prospects?