Listing ID: 83094
Sunbelt Business Brokers of New Orleans presents this long standing busy hang out and “hole in the wall” restaurant and bar for sale in New Orleans, LA. Business has all the energy, excitement and charm of a true New Orleans original establishment. Location is key for any business and this business is located in an excellent prime spot. Video poker brings in a large amount of revenue and cash flow to the business. One of the busiest high traffic pedestrian area sections of New Orleans. Business is a locals “hole in the wall” stop for breakfast, lunch or just to grab a beer and catch up with friends. Restaurant and Bar is highly rated on multiple platforms for great prices, excellent food and convenience. No surprise due to the success of the business. It has been open over three decades. Owner has decided to sell to enjoy retirement. Seller will help train and transition new owner. Contact us today for more information on this busy hang out restaurant and bar today before its gone! Great opportunities like this don’t last long!
- Asking Price: $500,000
- Cash Flow: $292,255
- Gross Revenue: $494,866
- EBITDA: N/A
- FF&E: $75,000
- Inventory: $15,000
- Inventory Included: Yes
- Established: 1986
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,500
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
The venture was started in 1986, making the business 36 years old.
The sale does include inventory valued at $15,000, which is included in the asking price.
The company has 12Ft employees and is situated in a building with disclosed square footage of 2,500 sq ft.
The building is leased by the company for $6,000 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell companies. Nonetheless, the real reason and the one they say to you might be 2 absolutely different things. As an example, they may state "I have too many various commitments" or "I am retiring". For many sellers, these factors stand. But, for some, these might simply be excuses to try to hide the reality of altering demographics, increased competitors, current reduction in earnings, or an array of other reasons. This is why it is extremely crucial that you not count absolutely on a seller's word, yet instead, make use of the vendor's response along with your general due diligence. This will repaint a more reasonable picture of the business's present circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Numerous companies take out loans in order to cover things such as stock, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can imply that profit margins are too thin. Numerous organisations fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that have to be satisfied or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area draw in new consumers? Often times, businesses have repeat consumers, which form the core of their day-to-day revenues. Certain aspects such as new competitors growing up around the location, roadway construction, and employee turn over can influence repeat clients as well as negatively affect future incomes. One crucial thing to consider is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business on a regular basis, the greater the chance to construct a returning customer base. A last idea is the basic location demographics. Is the business placed in a largely inhabited city, or is it situated on the outside border of town? Exactly how might the neighborhood mean house earnings impact future earnings prospects?