Listing ID: 83996
If you ever dreamed of having a restaurant that is a place of meeting and community, serving wholesome comfort food to all the regulars, this is it! They don’t take reservations and there is a line out the door of customers waiting to be seated. This location has been a restaurant since the 1960’s, continually updated and well-run this restaurant is a household name in Southwestern Michigan and is ready to transition to new owners.
Serving breakfast and lunch from a traditional menu this restaurant has a pleasant environment and familiar staff. Large dining rooms are accommodating and the building flows well. Visibility is excellent and there is plenty of parking. Catering and takeout can be expanded as well as serving dinner to grow the business.
- Asking Price: $325,000
- Cash Flow: N/A
- Gross Revenue: $400,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1998
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:3,700
- Lot Size:N/A
- Total Number of Employees:14
- Furniture, Fixtures and Equipment:N/A
Restaurant is a stand alone 3700 sq/ft building with two separate dining rooms, plently of seating and a well thought out kitchen with abundant storage.
Seller will provide training to help the purchaser take over providing a smooth transition while learning the business and its operating activities, gaining and understanding of the customers and vendor partners.
Seller wants to pursue other interests.
There are no other Breakfast and Lunch Restaurants close by.
There is room to grow by adding dinner back to the menu. Off site catering and hosting private corporate events would increase sales.
The business was started in 1998, making the business 24 years old.
The company has 14 employees and is situated in a building with approx. square footage of 3,700 sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals choose to sell businesses. However, the real reason and the one they tell you may be 2 totally different things. For instance, they might claim "I have a lot of various responsibilities" or "I am retiring". For numerous sellers, these factors stand. But, for some, these might just be justifications to try to hide the reality of changing demographics, increased competitors, recent decrease in incomes, or a range of other factors. This is why it is really essential that you not count entirely on a vendor's word, yet rather, utilize the vendor's solution together with your overall due diligence. This will paint a much more realistic picture of the business's current situation.
Existing Debts and Future Obligations
If the current business is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses finance loans with the purpose of covering points such as inventory, payroll, accounts payable, etc. Bear in mind that occasionally this can indicate that revenue margins are too tight. Lots of businesses fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that should be satisfied or may lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location draw in brand-new clients? Often times, businesses have repeat clients, which develop the core of their day-to-day earnings. Specific variables such as brand-new competition sprouting up around the area, roadway construction, as well as employee turn over can influence repeat customers as well as negatively influence future profits. One important point to consider is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business on a regular basis, the greater the opportunity to develop a returning consumer base. A final idea is the basic area demographics. Is the business placed in a densely populated city, or is it located on the outside border of town? Exactly how might the regional typical home earnings impact future earnings potential?