Listing ID: 84135
Well-established profitable restaurant with positive cash flow, steady sales and a solid customer base on Boston’s North Shore. Founded 34 years ago and at the current location for 25 years. Owner chose personal lifestyle over maximizing revenue so the restaurant is not open for dinners or Sundays – leaving open quick growth potential for a new owner.
SBA financing available for qualified buyer with relevant experience.
Seller Financing Available
- Asking Price: $575,000
- Cash Flow: N/A
- Gross Revenue: $1,650,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $10,000
- Inventory Included: No
- Established: 1987
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:19
- Furniture, Fixtures and Equipment:N/A
Stand-alone building located on a busy street with very little walking traffic. On one side is a mostly residential neighborhood, on the other side are shopping malls with well-known stores such as Staples, Marshalls, CVS and Stop & Shop.
Owner will be available for a mutually agreed transition period.
Time for a change and retirement after 34 years
Several restaurants are in the area which is known as a place where there are several food options, but the nearby population is large enough to support them all. This restaurant is well located for both local and drive-in customers and has sufficient parking off and on street.
Sales can be quickly increased by adding dinners and Sunday hours, including brunch. The restaurant is open 6-days per week.
The business was established in 1987, making the business 35 years old.
The sale shall not include inventory valued at $10,000*, which ins't included in the asking price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people resolve to sell operating businesses. Nonetheless, the genuine factor and the one they tell you may be 2 completely different things. For instance, they might claim "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these may simply be justifications to attempt to hide the reality of changing demographics, increased competition, current decrease in revenues, or a range of various other factors. This is why it is really important that you not rely entirely on a seller's word, however rather, make use of the seller's response combined with your total due diligence. This will paint a much more sensible picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of businesses finance loans with the purpose of covering items such as inventory, payroll, accounts payable, and so on. Remember that sometimes this can mean that revenue margins are too tight. Many companies come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally 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 contracts with suppliers that should be satisfied or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area draw in brand-new clients? Many times, companies have repeat consumers, which form the core of their day-to-day revenues. Specific elements such as new competitors sprouting up around the area, road construction, and also employee turnover can affect repeat consumers as well as adversely affect future revenues. One important point 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 often, the greater the possibility to construct a returning client base. A final thought is the general location demographics. Is the business situated in a densely populated city, or is it located on the outside border of town? Just how might the local median household earnings influence future income potential?