Listing ID: 80433
Business Overview
Excellent Revenue, Potential, and Profit! The Price has been reduced to sell for a qualified buyer!
Presently, the restaurant is operating 5 days a week with some days take out only and only open at 3 PM.
The owner has another restaurant and he simply can not do both. The is established and will provide excellent profit to an owner-operator. The owner spent over $350,000 building out this store but it has never had the leadership it needs to take it to the 1 million dollar plus level that the demograpic supports.
An Owner-Operator is needed for the Franchise Transfer of an excellent Johnny’s Pizza Franchise.
There will be a $7500 training and transfer fee. The new $30,000 new Franchise fee will not be required.
The property space has outside seating (patio) and a private room area is in addition to the square footage.
Financial
- Asking Price: $150,000
- Cash Flow: $150,000
- Gross Revenue: $650,000
- EBITDA: N/A
- FF&E: $100,000
- Inventory: $5,000
- Inventory Included: N/A
- Established: 2020
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,400
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
Well Established Strip Center in Growing Area that is set to expand
Franchisor Will Provide
Owner Has 2 other Franchises and cannot manage.
Pizza did well during the past crazy year. It should continue as people get back to work.
INDUSTRY TREND With the acceptance of curbside pickup, delivery services, and less cash (more charges), this business will be able to increase its selling multiple above past benchmarks. "Closures of hometown pizzerias often made headlines this year, but newcomers waited in the wings. CHD Expert found that the total number of pizza locations nationwide actually went up—from 77,724 to 78,092, a nudge of 0.47%. The number of independent pizzerias rose from 41,573 to 41,879, while the chains added a few stores, too, from 36,151 to 36,213. In other words, the pizza industry as a whole turned out to be both recession-proof and pandemic-proof. Sadly, we can’t say the same for non-pizza restaurants.... "'COVID-19 has accelerated the growth of the delivery space [by] several years,' says Alex Blum, founder and CEO of Relay, a back-end delivery service that offers an alternative to third-party giants like Grubhub and Uber Eats....'Five years from now, it will be rare to find a restaurant that does not offer delivery in some capacity,' Blum says." Source: "The 2021 Pizza Power Report: How Pizzeria Operators Can Thrive in the Coming Year" by Rick Hynum, https://www.pmq.com/pizza-power-report-2021/ "High-end pizza restaurants are offering more gourmet items with organic ingredients for health-conscious consumers. The ubiquitous adoption of the internet has driven this trend of online ordering. Higher demand for industry offerings has spurred a steady stream of new entrants. Pizza chains catering to lower incomes are competing in a highly saturated marketplace. Pizza restaurants will continue to encounter competition from alternative retail outlets. The industry will continue to deal with rising input prices, especially fresh meats. Changing consumer preferences have forced pizza restaurants to adapt over the past five years." Source: IBISWorld Industry at a Glance Growing business for pickup and takeout This is a very crowded industry segment so there will be constant fighting for the customers.
This Business Is An Established Franchise
Additional Info
The venture was founded in 2020, making the business 2 years old.
The sale shall not include inventory valued at $5,000*, which ins't included in the requested price.
The company has 12 employees and resides in a building with approx. square footage of 2,400 sq ft.
The building is leased by the company for $6,100 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals choose to sell businesses. However, the real factor vs the one they tell you might be 2 absolutely different things. As an example, they may state "I have a lot of various obligations" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these might just be justifications to try to hide the reality of transforming demographics, increased competition, recent decrease in earnings, or an array of other factors. This is why it is really important that you not depend entirely on a seller's word, however rather, utilize the seller's answer together with your overall due diligence. This will repaint a much more reasonable picture of the business's current 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. Lots of operating businesses take out loans so as to cover points like supplies, payroll, accounts payable, etc. Remember that occasionally this can imply that revenue margins are too thin. Numerous companies come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that have to be satisfied or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in brand-new consumers? Most times, operating businesses have repeat clients, which develop the core of their daily revenues. Certain variables such as brand-new competition sprouting up around the location, roadway construction, as well as staff turn over can affect repeat consumers and adversely impact future profits. One vital thing to think about is the area 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 higher the possibility to construct a returning consumer base. A final thought is the basic location demographics. Is the business located in a densely inhabited city, or is it located on the outside border of town? How might the neighborhood average home earnings impact future revenue potential?
