Listing ID: 83855
Café offers a great in house dining experience, and the size of the kitchen lends the opportunity for significant growth within the catering and delivery market. Just like any restaurant during the pandemic, there was a hit to revenues, but due to the well established name, tradition and history, the restaurant was able to continue operations and increase it’s business nearly 50% from 2020 into 2021! Average revenues over $710,000/yr pre COVID. Revenues shown are 4 year average.
- Asking Price: $225,000
- Cash Flow: N/A
- Gross Revenue: $601,200
- EBITDA: N/A
- FF&E: $50,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1976
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,200
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
Lease is negotiable to new Tenant/Owner. Lease is full service gross including all utilities, CAM costs, RE expenses, etc. Total size of kitchen & dining: 3200 SF All equipment, furniture, and fixtures are included with the sale of the business. Business name, website, phone number, etc. will be part of the sale. Inventory value will be calculated based on whole sale costs at the time of closing. Current owner offering a turn-key business with room to grow.
Owner willing to stay on for a transition period.
Exploring other business interests
The restaurant industry is currently recovering due to the COVID-19 pandemic and now is a great time to purchase an established business knowing it can survive during such difficult times along with increasing revenue trends.
Opportunity for growth with extended hours of operation. Increasing its online presence focusing more on deliveries.
The venture was started in 1976, making the business 46 years old.
The company has 12 employees and resides in a building with approx. square footage of 3,200 sq ft.
The property is leased by the company for $0.00
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell businesses. However, the true factor and the one they tell you may be 2 completely different things. As an example, they may say "I have too many various responsibilities" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may just be reasons to attempt to conceal the reality of changing demographics, increased competition, current decrease in revenues, or a variety of various other factors. This is why it is really crucial that you not depend completely on a seller's word, however rather, utilize the vendor's solution along with your total due diligence. This will repaint a more reasonable image of the business's present scenario.
Existing Debts and Future Obligations
If the current business is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous companies borrow money with the purpose of covering things such as inventory, payroll, accounts payable, and so on. Keep in mind that in some cases this can indicate that profit margins are too thin. Numerous businesses fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that should be met or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location bring in new consumers? Many times, companies have repeat consumers, which create the core of their daily earnings. Particular aspects such as brand-new competitors sprouting up around the area, road construction, and employee turn over can influence repeat customers and also negatively affect future incomes. One vital point to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Clearly, the more people that see the business on a regular basis, the better the chance to build a returning consumer base. A last idea is the basic location demographics. Is the business placed in a densely inhabited city, or is it situated on the outside border of town? Exactly how might the regional average home earnings effect future income potential?