Listing ID: 84165
Business Overview
Landmark tavern on the outer Cape serving lunch and dinner. This local landmark caters to a loyalist crowd of tourists and locals and has operated at this location for over 50 years, yes 50 years! The restaurant boasts seating for 65 while pumping average revenues north of $1.5 million! This cash cow is ideal for a hands on operator, with discretionary earnings over $275,000 annually to a working owner. The restaurant has an excellent year round staff and full kitchen staff w/ several key employees that allow present ownership to operate absentee. A long term lease with annual rent of $42,000 makes occupancy cost very manageable with the high volume revenue. Ownership has invested over $130,000 in equipment and improvements over the last 5 years. Owners wish to retire but are committed to assisting in transitioning the restaurant to new ownership.
Financial
- Asking Price: $450,000
- Cash Flow: $278,000
- Gross Revenue: $1,528,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1971
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,800
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
1800 SF free standing building with ample parking
sellers will be available for support and transition services
retirement
marketing and hands on ownership
Additional Info
The venture was started in 1971, making the business 51 years old.
The building is leased by the company for $3,500 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell operating businesses. However, the real reason vs the one they say to you might be 2 absolutely different things. As an example, they might state "I have way too many various commitments" or "I am retiring". For many sellers, these reasons stand. But, for some, these may just be reasons to attempt to conceal the reality of transforming demographics, increased competitors, current reduction in profits, or an array of various other factors. This is why it is extremely essential that you not rely completely on a vendor's word, yet rather, use the vendor's response in conjunction with your overall due diligence. This will paint an extra reasonable image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Many businesses finance loans so as to cover items like inventory, payroll, accounts payable, etc. Remember that occasionally this can indicate that revenue margins are too thin. Numerous companies fall into 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 obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that must be satisfied or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area bring in new customers? Most times, operating businesses have repeat consumers, which create the core of their daily earnings. Particular factors such as new competitors sprouting up around the location, roadway construction, and employee turn over can influence repeat consumers and also negatively affect future revenues. One vital thing to consider is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business on a regular basis, the better the chance to construct a returning customer base. A last idea is the basic area demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? Just how might the local mean family income effect future earnings prospects?
