Listing ID: 82187
Millstream Brau Haus restaurant is a German Bierhalle serving German-beer inspired food along with a large selection of craft beers. The Brau Haus provides a beer-inspired food venue alternative to the limited family style menus found in the other eating establishments in the Amana Colonies area. The Amana Colonies is on the U.S. National Register of Historic Places and is a popular tourist area in Eastern Iowa. It is made up of seven villages which were founded in 1856. Prior to 1932 the people of Amana lived a communal life. Tourists come to learn about what life was like for the colonists and to attend the many events held in the area.
- Asking Price: $495,000
- Cash Flow: $215,957
- Gross Revenue: $1,029,391
- EBITDA: N/A
- FF&E: $282,061
- Inventory: $175,090
- Inventory Included: Yes
- Established: 2016
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:26,500
- Lot Size:N/A
- Total Number of Employees:29
- Furniture, Fixtures and Equipment:N/A
The building is 26,500 square feet with two stories and has a full basement and a loft area. There is a full kitchen, a bakery and cold/frozen vegetable and meat walk-in coolers. There is also a small, private apartment on the second floor that can be rented for additional income. There is ample parking available on the 1.680 acres.
As required by buyer.
This “landmark” restaurant is located next door to Millstream Brewing Company, Iowa’s oldest microbrewery of premium craft beers and soft drinks. The 1 million plus tourists who visit the Amana colonies each year have limited restaurant choices and Millstream Brau Haus offers unique food and beer choices.
A new owner could increase revenues by extending the Brau Haus hours to accommodate morning breakfast patrons as well as later in the evening to accommodate guests looking for some evening entertainment.
The business was established in 2016, making the business 6 years old.
The transaction shall include inventory valued at $175,090, which is included in the asking price.
The business has 29 employees and is located in a building with estimated square footage of 26,500 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell businesses. Nonetheless, the real reason and the one they say to you might be 2 completely different things. As an example, they may say "I have way too many various responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these might just be excuses to try to conceal the reality of altering demographics, increased competition, recent decrease in earnings, or an array of other reasons. This is why it is really essential that you not rely entirely on a seller's word, however instead, utilize the vendor's answer in conjunction with your total due diligence. This will paint a much more practical picture of the business's present scenario.
Existing Debts and Future Obligations
If the current company is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of businesses take out loans with the purpose of covering points like supplies, payroll, accounts payable, so on and so forth. Remember that sometimes this can imply that revenue margins are too thin. Lots of companies come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future obligations to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that should be fulfilled or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location attract brand-new customers? Often times, businesses have repeat customers, which develop the core of their daily revenues. Specific variables such as brand-new competitors growing up around the area, road construction, as well as personnel turnover can impact repeat consumers and also negatively impact future revenues. One important point to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more people that see the business often, the better the possibility to develop a returning customer base. A final thought is the general location demographics. Is the business placed in a largely inhabited city, or is it situated on the edge of town? How might the regional median family earnings impact future earnings prospects?