Listing ID: 83755
Ever dreamed of owning a restaurant and bar in a quiet, small town? Bailey’s Restaurant & Bar in Ormsby, Minnesota has an excellent history of outstanding food and service. Customers drive from within a 30 mile radius for famous dinner specials such as “All You Can Eat Fish”, “BBQ Rib and Prime Rib Nights” and their newly added “Sunday Breakfast Buffet”. Approximately 80% of revenue is from food sales while the remaining 20% is from bar and off-sale revenue. Revenue and net income have steadily increased over the years including a 37% increase in revenue from 2020 to 2021 and a 65% increase in owner net cash flow. 2021 had the highest sales for the establishment’s 20+ year history.
You must visit this establishment to appreciate the charm of the 100 plus year old building featuring an antique Brunswick Bar. Seating for 80 guests with room to add additional outdoor seating on the extra lot. Bailey’s currently operates with 6 part time bar/wait staff, 1 part time cook and a manager that does it all – scheduling, food and beverage ordering, cook and provided bar and wait staff service. Owner’s role is cooking several nights per week and is open to staying on until new owner trained or new cook is hired.
Price includes real estate, all business assets, equipment, furniture, and liquor license for bar and off-sale. Inventory to be negotiated at time of sale. Seller is open to discussing financing arrangements.
SBA pre-approved loan for qualified buyers.
This business is located along the Main Street in Ormsby, MN. Location is about 45 miles southwest of Mankato, 12 miles south of St. James and 25 miles northwest of Fairmont.
- Asking Price: $145,000
- Cash Flow: $44,376
- Gross Revenue: $321,990
- EBITDA: N/A
- FF&E: $50,000
- Inventory: $5,000
- Inventory Included: Yes
- Established: 2003
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:1,813
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
1813 SF building built in 1903. Maintenance free steel roof with vinyl exterior on sides and brick face.
Owner will train as needed.
Only bar and restaurant in 10 mile radius
The company was established in 2003, making the business 19 years old.
The sale will include inventory valued at $5,000, which is included in the suggested price.
The company has 8 employees and is situated in a building with disclosed square footage of 1,813 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals resolve to sell operating businesses. Nonetheless, the genuine factor and the one they say to you might be 2 completely different things. As an example, they might claim "I have too many various responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may simply be reasons to attempt to hide the reality of transforming demographics, increased competition, current reduction in earnings, or an array of various other factors. This is why it is extremely crucial that you not depend totally on a seller's word, yet rather, make use of the seller's solution along with your total due diligence. This will repaint a more practical image of the business's existing situation.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Numerous companies finance loans so as to cover things such as inventory, payroll, accounts payable, and so on. Bear in mind that in some cases this can suggest that earnings margins are too small. Lots of businesses fall 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 take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that need to be fulfilled or might cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area attract brand-new customers? Often times, companies have repeat clients, which develop the core of their daily earnings. Specific variables such as brand-new competitors growing up around the area, roadway construction, and personnel turnover can influence repeat customers as well as adversely influence future incomes. One crucial point to consider is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business regularly, the higher the opportunity to build a returning client base. A final idea is the basic area demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? Exactly how might the local mean house earnings impact future income potential?