Listing ID: 82364
Local pizza and pasta shop in a high traffic location. Well known local shop that has been around for almost 40 years. Business during Covid was the best they have ever had! Primarily take-out and delivery, in-house dining available, renovations currently underway.
This great restaurant also has a liquor license for beer and wine.
Restaurant itself has been around for almost 40 years, current owners have held it for 4 years
Compete with national chain restaurants, and a few local pizza restaurants, very few within 1 mile of physical location
- Asking Price: $104,000
- Cash Flow: $85,000
- Gross Revenue: $732,000
- EBITDA: N/A
- FF&E: $79,000
- Inventory: $7,000
- Inventory Included: Yes
- Established: 1982
- 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
The business was founded in 1982, making the business 40 years old.
The deal shall include inventory valued at $7,000, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell businesses. Nevertheless, the real reason and the one they say to you might be 2 absolutely different things. For instance, they might state "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these may just be excuses to try to hide the reality of altering demographics, increased competition, current decrease in profits, or a variety of various other reasons. This is why it is extremely crucial that you not depend totally on a seller's word, yet instead, utilize the seller's response together with your total due diligence. This will repaint a much more sensible picture of the business's current scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of companies borrow money in order to cover items like supplies, payroll, accounts payable, so on and so forth. Remember that sometimes this can indicate that profit margins are too tight. Lots of organisations come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that need to be met or may cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area attract brand-new customers? Many times, operating businesses have repeat consumers, which develop the core of their day-to-day profits. Particular aspects such as brand-new competition growing up around the location, road construction, as well as staff turn over can influence repeat customers and also negatively affect future profits. One crucial thing to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Obviously, the more individuals that see the business on a regular basis, the better the possibility to construct a returning customer base. A last thought is the general area demographics. Is the business situated in a largely populated city, or is it located on the edge of town? Exactly how might the neighborhood mean household income effect future revenue prospects?