Business Overview

14 year established franchise delivery pizza shop in a growing city is available for acquisition. This business was originally established in 2007 by the previous owner and was acquired by the current owner in 2018 and the owner has remodeled the store front and replaced some of the kitchen equipment. When first established, the business was one of the first delivery pizza shops in the area, but as the city started to grow, the competition grew as well and other similar mom and pop shops and corporate pizza shops began to open in the surrounding area. Despite many competitions opening up, especially in the last few years, with almost 15 years in business and having a solid customer base and a good relationship with the community by providing fresh and quality ingredients, the sales have not been impacted too significantly. The sales have been consistent throughout the last several years around $400,000/year and even during the pandemic in 2020, the annual net sales were $405,000 and 2021 is projected to be close to $435.000. Some corporate marketing is in place, such as e-mail marketing, TV ads, but in order to fully reach its maximum financial potential, online presence and social media marketing are needed, all 3rd party delivery services need to be utilized, build a long term relationship with nearby existing and upcoming new schools for additional catering sales is crucial, and door to door flyers to newly developed community to acquire customers from untapped area. The owner is involvement in the actual operation is minimal and generally the owner is involved in upper management level, such as bookkeeping and payroll, but the owner likes to work a few shifts 2-3 days a week for inventory and just to make sure the operation and the employees are at their best. The employees are fully competent and by hiring a general manager, the business can be run as owner-absentee. This business is well-established and has a track record of consistent sales ever during the most difficult time and is in a good position to do even better in the future due to regular customers and future customers from growing population.

Listing ID #001162
For more info, please call Kevin Chung at 1-866-519-2421.

Financial

  • Asking Price: $155,000
  • Cash Flow: $90,556
  • Gross Revenue: $439,887
  • EBITDA: N/A
  • FF&E: $45,000
  • Inventory: $3,500
  • Inventory Included: Yes
  • Established: 2007

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:14
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This business is located in a 1,125 SF retail strip center surrounded by densely populated residential neighborhoods and rapidly growing city and community.

Is Support & Training Included:

Owner will provide a sufficient training for an agreed-upon period to make the transition into the business as seamless as possible.

Purpose For Selling:

Relocating

Pros and Cons:

While there are other direct and indirect corporate competitors in the immediate area, this business has built up a solid customer base during the 10+ years in the area and its fresh quality and ingredients cannot be compared.

Opportunities and Growth:

Corporate marketing is in place that provides ample marketing for this business, but other local marketing campaigns is needed to generate more cash flow and acquire new untapped customers. Social media campaign is crucial as well as utilizing all 3rd party delivery services and as 3 new schools are scheduled to open in Fall of 2021 and 2 more in 2022, strengthening relationships with the schools and communities will help garner more catering sales and exposure.

Established Franchise:

This Business Is An Established Franchise

Additional Info

The company was established in 2007, making the business 15 years old.
The transaction does include inventory valued at $3,500, which is included in the requested price.

Why is the Current Owner Selling The Business?

There are all types of reasons why people decide to sell operating businesses. However, the true reason vs the one they tell you might be 2 entirely different things. For instance, they might claim "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may simply be excuses to attempt to conceal the reality of changing demographics, increased competition, recent decrease in earnings, or a range of various other reasons. This is why it is really vital that you not rely entirely on a seller's word, however rather, make use of the vendor's answer along with your total due diligence. This will paint a much more realistic picture of the business's existing situation.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies finance loans in order to cover things such as supplies, payroll, accounts payable, and so on. Remember that sometimes this can suggest that revenue margins are too tight. Numerous organisations fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that must be met or may cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the area attract brand-new clients? Most times, companies have repeat clients, which create the core of their daily revenues. Specific variables such as new competitors growing up around the location, road construction, and also employee turn over can influence repeat customers and also negatively affect future incomes. One vital point to consider is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Obviously, the more individuals that see the business on a regular basis, the greater the chance to develop a returning client base. A last thought is the general location demographics. Is the business placed in a densely inhabited city, or is it located on the outskirts of town? How might the neighborhood typical family income effect future income prospects?