Listing ID: 81427
Business Overview
This well known family restaurant has been a local staple for almost 20 years. They have a consistent and loyal customer base. This restaurant serves breakfast, lunch, & dinner. The current owner works on-site about 28 hours a week. The restaurant has an established staff of 8 full-time employees & 10 part-time employees. The current owners are selling so they can retire.
Financial
- Asking Price: $315,000
- Cash Flow: $122,000
- Gross Revenue: $895,000
- EBITDA: N/A
- FF&E: $50,000
- Inventory: $10,000
- Inventory Included: N/A
- Established: 2004
Detailed Information
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:4,125
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Building is owned by the seller and is listed at $ 559,000. Building is approximately 4,125 sq. ft. with very large parking. Building has had numerous improvements over the years.
Owner will provide training and support for a smooth transition.
Retirement
A little digital marketing will go a long way with this business. The new owner could grow the business by harnessing all that social media has to offer, updating the existing website, and utilizing SEO best practices.
Additional Info
The company was founded in 2004, making the business 18 years old.
The sale shall not include inventory valued at $10,000*, which ins't included in the suggested price.
Why is the Current Owner Selling The Business?
There are all types of reasons people decide to sell companies. However, the real factor and the one they say to you might be 2 absolutely different things. As an example, they might claim "I have too many other obligations" or "I am retiring". For lots of sellers, these reasons stand. But also, for some, these may just be justifications to attempt to conceal the reality of transforming demographics, increased competitors, current reduction in incomes, or a variety of other reasons. This is why it is extremely vital that you not count totally on a vendor's word, however rather, make use of the vendor's solution combined with your total due diligence. This will paint a much more practical image of the business's present circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Lots of businesses take out loans with the purpose of covering things such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can indicate that profit margins are too thin. Numerous organisations 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 commitments to think about. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that must be fulfilled or might cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in brand-new customers? Often times, companies have repeat consumers, which form the core of their daily profits. Specific aspects such as brand-new competitors sprouting up around the area, roadway building, and employee turn over can impact repeat consumers and adversely influence future profits. One crucial point to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the greater the possibility to build a returning consumer base. A final idea is the basic area demographics. Is the business located in a largely populated city, or is it located on the outskirts of town? How might the local mean household earnings influence future revenue potential?
