Business Overview

Very profitable cafe style restaurant with a great reputation for 20 plus years in a beautiful community. Perfect type restaurant for individual desiring evenings off and most of the weekends off since they are only open Monday through Saturday 6am – 2pm. Seller is willing to finance up to 20% of purchase price.

Financial

  • Asking Price: $199,000
  • Cash Flow: $114,448
  • Gross Revenue: $595,223
  • EBITDA: N/A
  • FF&E: $100,000
  • Inventory: $7,500
  • Inventory Included: Yes
  • Established: 2003

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:10
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Restaurant seats 80 and has plenty of parking with an adjacent parking lot and street parking on two sides. The dining area and kitchen were designed to efficiently serve up to 400 meals per day.

Is Support & Training Included:

Will train for 2 weeks @ $0 cost. Restaurant and management skills recommended. A food license is required and easily obtained through the State of Iowa.

Purpose For Selling:

Retirement.

Pros and Cons:

There are many restaurants in the surrounding area, but only two serving full breakfast menus and this restaurant has the best reputation by far.

Opportunities and Growth:

A new buyer could add Sunday service and substantially increase sales and bottom line since Sunday service is in high demand.

Additional Info

The business was established in 2003, making the business 19 years old.
The transaction shall include inventory valued at $7,500, which is included in the asking price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people choose to sell operating businesses. Nonetheless, the real reason and the one they tell you may be 2 absolutely different things. As an example, they may state "I have too many other responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these may just be justifications to try to hide the reality of changing demographics, increased competitors, recent decrease in incomes, or a variety of various other reasons. This is why it is very essential that you not count entirely on a vendor's word, but rather, make use of the seller's solution along with your overall due diligence. This will repaint a much more practical picture of the business's current circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Many operating businesses take out loans so as to cover things like inventory, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can mean that profit margins are too thin. Numerous organisations fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that have to be satisfied or might lead to fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location bring in brand-new consumers? Often times, businesses have repeat customers, which form the core of their day-to-day revenues. Particular factors such as new competitors sprouting up around the area, road building and construction, and also employee turn over can impact repeat clients and adversely affect future earnings. One vital point to consider is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Clearly, the more people that see the business regularly, the higher the chance to construct a returning client base. A last thought is the general area demographics. Is the business situated in a densely inhabited city, or is it located on the outside border of town? Just how might the regional mean house earnings effect future revenue potential?