Coffee Shop And Restaurant In Centurion For Sale

Business description

1. History Background
A franchised Italian Restaurant and Coffee Shop which serves light meals,
pasta, pizza and coffee in a great center.
Fully describe the business's activities?
How long has the business been It was established in 2008
established?
How long has the owner had the Since it was established
business?
What steps are in place to solve 'load There is a generator in place.
shedding' problems?
What is the average KW usage? 15 kva
2. Present Market
The business operates during the day preparing light meals, coffee and other
italian food. Delivery of stock is taken regularly and food products are kept
fresh.
How does the business operate on a
daily basis?
The clients are attracted to the business through its good highly visible
location, through a good brand loyalty and through various advertising in local
publications.
How are the clients attracted to the
business?
What Advertising/Marketing is carried Advertising is carried out on the web site and in the newspapers.
out?
The business does do some catering but not contracted, this is a good
opportunity for the prospective buyer to consider.
Does the business have any contract
work?
What competition exists? Mugg & Bean in the near vicinity and a News Cafe in the same centre.
What are the seasonal trends? Positive correlation to the restaurant industry.
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3. Financial
Is the business VAT Registered? Yes the business is Vat registered.
What VAT documentation is on file? Vat Returns
Are there up-to-date Management Yes
Accounts available?
What Balance Sheet and Income As per management accounts
Statements are available?
What percentage of of the business is 100% cash
cash/credit?
What is the age analysis of the debtors none
book?
Trading hours need to be extended to include evening trade and alcohol may
be brought in as it is currently not being sold, there is good margin on alcohol
and it will drastically increase turnover.
How could the profitability of the
business be improved?
Is Seller finance available and for what No.
amount?
What is the payback period? 35 months
What is the ROI? 33.5% per annum
4. Staffing
What is the total staff complement? 8 Waiters, 2 managers, 7 kitchen staff and 2 Barista's
Give a breakdown of The managers have been there for 2.5 years
staff/functions/length of service?
Do any receive special perks or No
incentives?
Are they on contract? Yes, standard employment agreements
Do any have management potential? Yes - 2 existing staff members
The current owner is present on site everyday but is not highly involved in
running the business.
How involved is the Owner in running
the business?
5. Premises
When does the current lease end? The current lease ends in three years time.
Is there an option of renewal & what Yes, an option to renew for a further five years.
period?
What is the annual escalation %? 8%
What are the trading hours? The business trading hours are from 06:30 - 19:00
What is the square meterage of the 187 square meters indoors and 120 outdoors.
business?
Is a copy of the lease available? Yes, a copy of the lease is available
No, but an alcohol licence is required to improve the profitability of the
business
Do you require a licence?
6. Assets
Is a full asset list on file? No, in the process of compiling
07 October 2011 Page 2 of 5
6. Assets
Are any items not included in the sale? No
What is their overall condition? Good working condition
Do any require repairing? No
How have they been valued. ? Owners valuation
Which assets are on lease/HP and with A pizza oven is on rental.
whom?
Will Seller settle or Buyer to take over? Negotiable.
Are they presently insured? Yes
7. S.W.O.T. Analysis
The business got existing management and is a national brand. Mugg & Bean
is the only
real competition
Strengths?
Weaknesses? Lack of advertising.
To start selling alcohol, as well as evening trades will improve the business's
profitability and the expansion of catering.
Opportunities?
Threats? Competition exists in the immediate area
8. Reason For Sale
What is the reason for the sale? Owner wants to concentrate on other businesses
9. Conclusion
Great emphasize is placed on quality and keeping abreast of trends
internationally.
Traditional values are maintained yet creative changes over the years have
ensured that
the Nino’s menu remains innovative yet traditional.
Why is this a good business?
What is the price plus stock and the net R1, 210 000
profit?
07

Other information

Furniture / Fixtures value:

R700,000 (included in the asking price)

Inventory / Stock value:

R35,000 (included in the asking price)