Listing ID: 83364
Successful restaurant offering middle to high-end food choices, specialty cocktails and over a dozen local beers on tap in a popular four-season recreation area. The business serves high quality made from scratch meals focusing on local and fresh ingredients. The inviting open-concept space makes the restaurant both a popular local hangout and a place for visitors to gather and have a good meal. The business has been more successful than the owners had ever anticipated and they’re ready to hand it over to someone else to serve the community. Note, the sales and cash flow shown are from 1/1/21 to 8/31/21.
- Asking Price: $950,000
- Cash Flow: $20,736
- Gross Revenue: $741,529
- EBITDA: N/A
- FF&E: $150,000
- Inventory: $22,000
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:3,680
- Lot Size:N/A
- Total Number of Employees:7
- Furniture, Fixtures and Equipment:N/A
Open concept kitchen and dining area, bar seating plus outdoor patio seating during warmer months.
Ready for a new challenge
There are other restaurants in the area, but none offer the quality of food and beverages that this restaurant does. Located in a popular recreation area visited by many during all four seasons.
Finding and hiring more staff would allow for expanded service and the demand is already there and waiting. Offering breakfast service, which is currently an underserved option in the area could also increase revenue and appeal to a different clientele. There is also the opportunity to offer entertainment and more private and public events if staffing allows.
The deal won't include inventory valued at $22,000*, which ins't included in the asking price.
The company has 7 FT/8 PT employees and is located in a building with estimated square footage of 3,680 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals resolve to sell operating businesses. However, the real reason vs the one they tell you may be 2 entirely different things. As an example, they might say "I have way too many other obligations" or "I am retiring". For numerous sellers, these factors stand. But, for some, these may simply be reasons to attempt to hide the reality of altering demographics, increased competition, current decrease in incomes, or an array of various other factors. This is why it is very essential that you not rely absolutely on a seller's word, however instead, make use of the seller's response along with your total due diligence. This will repaint a more reasonable picture of the business's present circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Many companies finance loans with the purpose of covering items like stock, payroll, accounts payable, and so on. Bear in mind that in some cases this can indicate that revenue margins are too tight. Numerous 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 obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that have to be fulfilled or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area draw in new consumers? Often times, operating businesses have repeat consumers, which develop the core of their everyday profits. Particular factors such as brand-new competitors sprouting up around the area, road building, and personnel turnover can influence repeat consumers as well as negatively influence future incomes. One crucial thing to think about is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business on a regular basis, the higher the opportunity to develop a returning client base. A last idea is the general location demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? Just how might the neighborhood median household earnings impact future income prospects?