Listing ID: 83384
Highly reputable café business with two locations in Southern Maine. Both locations offer indoor and outdoor seating, as well as take-out, serving breakfast and lunch. The business offers quality locally sourced products including pastries and fair trade organic coffee from Maine. Superior customer service has been a known contributor to the continued success of both locations. Customers represent a wide range of demographics from local businesses, local neighborhoods, students, tourists and a high volume of long-time repeat customers.
- Asking Price: $470,000
- Cash Flow: $166,545
- Gross Revenue: $1,277,746
- EBITDA: N/A
- FF&E: $79,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2013
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,450
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
2 locations; one is 1,450+/- SF and the other is 2,000+/- SF. Both locations offer indoor and outdoor seating, take-out, ordering area and small retail section.
With the current Covid situation, the business has focused more of its efforts on take-out & curbside. Both cafes continue to prosper due to a loyal customer base that patronize the locations consistently in search of the community centric atmosphere and products not offered by others.
The business has a very large following along with an excellent reputation. With a proven history of success and profitability, this offers the ability to expand the current locations as well as add new locations in the future. Expanding hours and food/beverage options may also increase profitability.
The company was started in 2013, making the business 9 years old.
The business has 8 FT/2-3 PT employees and resides in a building with disclosed square footage of 3,450 sq ft.
The real estate is leased by the company for $6,137 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals resolve to sell operating businesses. However, the real factor vs the one they say to you might be 2 totally different things. As an example, they might state "I have way too many other commitments" or "I am retiring". For lots of sellers, these factors stand. However, for some, these might just be justifications to attempt to conceal the reality of transforming demographics, increased competition, recent decrease in revenues, or an array of various other factors. This is why it is very vital that you not rely entirely on a seller's word, but rather, make use of the vendor's answer along with your general due diligence. This will paint a more reasonable image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of businesses finance loans so as to cover points such as inventory, payroll, accounts payable, etc. Bear in mind that sometimes this can indicate that earnings margins are too thin. Numerous companies come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that have to be satisfied or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location attract new clients? Many times, companies have repeat consumers, which create the core of their daily earnings. Particular elements such as new competitors sprouting up around the location, road construction, and personnel turnover can impact repeat consumers and negatively affect future revenues. One crucial point to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Obviously, the more individuals that see the business regularly, the higher the possibility to build a returning client base. A last thought is the basic location demographics. Is the business placed in a densely populated city, or is it located on the outskirts of town? Exactly how might the local mean home earnings influence future income potential?