Listing ID: 81581

Business Overview

Well-established (since 1983), growing and profitable local pizza restaurant with building/property is ready for its next owner.

Key investment considerations:

* Revenues have grown by a compound annual growth rate (CAGR) of nearly 20 percent 2018 through 2020.
* Cash flow CAGR over same period exceeded 30 percent and exceeded $250,000 in 2020.
* Asking price broken down as follows:
— $799,000 for business.
— $195,000 for property with 3,300 square foot building.
* Open five days a week from 4p to 9p-10p, upside potential exists for new owner to expand to include lunch hours and other days.
* Offers dine-in, pick-up, delivery and par-baked pizzas; menu also includes breadsticks, wings, salads, beef roll and other hot/cold sandwiches.
* Owner willing to provide seller financing to qualified buyers.

Owner willing to remain on for a short period of time to ensure smooth transition.

Call now for more details!

Current owner purchased the business from the former owners in 2017 that established it in a western Chicagoland suburb downtown location in 1983.
The pizza restaurant industry is an important segment in the restaurant industry in the United States. With consumers dining in, getting takeout, and ordering delivery, pizza restaurant sales reached over 46 billion U.S. dollars in 2020. Pizza restaurant sales have seen almost consistent growth in the U.S. for almost a decade. The number of pizza restaurants in the United States has also been on the rise, increasing by over six thousand units in the last eight years to a high of more than 78 thousand units in 2020, though the impact of the 2020 coronavirus (COVID-19) pandemic on this trend is uncertain. See https://www.statista.com/topics/1610/pizza-delivery-market/.

Currently, this pizza restaurant is open five days a week from 4p to 9p (closes at 10p on Friday and Saturday). Growth potential exists for new owners to open more days per week and longer hours to include lunch.

Financial

  • Asking Price: $994,000
  • Cash Flow: $284,571
  • Gross Revenue: $766,635
  • EBITDA: N/A
  • FF&E: $55,250
  • Inventory: $5,000
  • Inventory Included: Yes
  • Established: 1983

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:15
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

retiring

Additional Info

The business was founded in 1983, making the business 39 years old.
The deal does include inventory valued at $5,000, which is included in the requested price.

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals decide to sell businesses. Nonetheless, the genuine factor vs the one they say to you might be 2 completely different things. As an example, they might state "I have way too many various obligations" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may simply be justifications to try to hide the reality of changing demographics, increased competitors, current reduction in profits, or an array of various other reasons. This is why it is extremely important that you not rely totally on a vendor's word, however instead, use the vendor's response in conjunction with your overall due diligence. This will paint a much more sensible image of the business's existing scenario.

Existing Debts and Future Obligations

If the current company is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Lots of companies borrow money in order to cover points like inventory, payroll, accounts payable, etc. Bear in mind that in some cases this can imply that revenue margins are too small. Numerous companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that need to be fulfilled or might cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location draw in brand-new clients? Many times, businesses have repeat clients, which create the core of their daily earnings. Particular variables such as brand-new competitors sprouting up around the area, road construction, as well as employee turn over can impact repeat clients and also negatively impact future profits. One important thing to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Clearly, the more people that see the business regularly, the better the chance to build a returning client base. A last thought is the basic area demographics. Is the business placed in a densely populated city, or is it located on the edge of town? Just how might the local median household earnings influence future income prospects?