Listing ID: 81543
Business Overview
This is a building, land and complete restaurant. It is well established with many regulars. Open for lunch and dinner serving a wide range of specialty dishes. Upside opportunity to add additional menu items, gaming and other entertainment. Offer comes as a fully equipped restaurant and can be revenue producing on close day. This is a building, land and equipment sale.
Financial
- Asking Price: $525,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: $6,000
- Inventory Included: N/A
- Established: 1988
Detailed Information
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:3,136
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
This is a fully equipped restaurant with a strong brand for serving authentic Spanish cuisine at a reasonable price. May patrons have been coming since restaurant opened for business.
Seller will provide training and consulting based upon Buyer experience in operating such a business.
Retiring from hospitality business.
Restaurant has a good location and established brand.
Consider adding gaming, catering and periodic entertainment.
Additional Info
The venture was established in 1988, making the business 34 years old.
The transaction won't include inventory valued at $6,000*, which ins't included in the asking price.
The company has 10 employees and is located in a building with disclosed square footage of 3,136 sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people resolve to sell companies. Nonetheless, the genuine reason vs the one they tell you may be 2 entirely different things. As an example, they may claim "I have way too many various obligations" or "I am retiring". For many sellers, these factors are valid. However, for some, these might just be reasons to try to conceal the reality of changing demographics, increased competitors, recent reduction in earnings, or an array of various other factors. This is why it is extremely crucial that you not depend entirely on a seller's word, but instead, make use of the vendor's response combined with your general due diligence. This will paint a more realistic image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your offer. Many businesses finance loans in order to cover points like stock, payroll, accounts payable, so on and so forth. Remember that occasionally this can imply that profit margins are too tight. Many businesses come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that have to be satisfied or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area draw in new clients? Often times, companies have repeat consumers, which create the core of their everyday revenues. Certain variables such as brand-new competition growing up around the location, road construction, and staff turnover can influence repeat clients and also adversely affect future incomes. One important thing to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business often, the greater the opportunity to construct a returning consumer base. A final thought is the basic area demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? Just how might the local typical household earnings impact future income potential?
