Family Restaurant In Roodepoort For Sale

Business description

Fully describe the business's activities?
Family orientated italian themed restaurant focused on catering for children

How long has the business been established?
Six Years

How long has the owner had the business?
Six years

What steps are in place to solve 'load shedding' problems?
The shopping mall has generators and the restaurant operates mainly on GAS

2. Present Market
How does the business operate on a daily basis?
Owner run

How are the clients attracted to the business?
High visibility in the entrance of a highly popular up market mall

What Advertising/Marketing is carried out?
Web sites, ads on various internet restaurant sites, Direct marketing through email, sms's. Also do flyer drops, posters and banners within the areas.

Does the business have any contract work?
No

What competition exists?
The mall is not over traded in restaurants and this restaurant has its own character and vibey unlike the big franchises.

What are the seasonal trends?
Because the restaurant is inside the centre it's trading is not affected by the weather. The normal holiday seasons do however play a role.

3. Financial
Is the business VAT Registered?
Yes

What VAT documentation is on file?
All the Vat returns are on file with the seller

Are there up-to-date Management Accounts available?
Yes

What Balance Sheet and Income Statements are available?
2011 and prior is available

What percentage of of the business is cash/credit?
80% Credit Card, 20% Cash

What is the age analysis of the debtors book?
None

How could the profitability of the business be improved?
As the revamp is now complete and the clients accept the new mall turnover is expected to pick up substantially.

Is Seller finance available and for what amount?
No, the seller believes the buyer should rather borrow the money from financials institutions or friends if required.

4. Staffing
What is the total staff complement?
?13

Give a breakdown of staff/functions/length of service?
3 x Cooks, 2 x Salad, 1 x Bar, 3 x Pizza, 1 x Sculley and 6-8 Waiters

Are they on contract?
No Contracts, waiters are casuals

Do any have management potential?
Yes, some of the waiters have potential to make good managers

How involved is the Owner in running the business?
100% as the partner Kinga is full time in the business

5. Premises
When does the current lease end?
5.5 Years

What is the annual escalation %?
8%

What are the trading hours?
10am-10pm Seven days a week

What is the square meterage of the business?
80m?

Is a copy of the lease available?
Yes

Do you require a licence?
Gas and Liquor licenses

6. Assets
Is a full asset list on file?
Yes

Are any items not included in the sale?
No

What is their overall condition?
Excellent

Do any require repairing?
No

How have they been valued. ?
Replacement value

Which assets are on lease/HP and with whom?
None

Are they presently insured?
Yes

7. S.W.O.T. Analysis
Strengths?
Small funky intimate business with a lot of character attracting the people that don't necessarily like the big franchised operations. Small, easily managed. Easily looks full which attracts more clients even when there is still plenty of space available. Very interesting, appealing and affordable menus. Physical position at the entrance to the newly revamped mall is a major strength of the business.

Weaknesses?
None identified

Opportunities?
To grow as clients become exposed to the newly revamped mall

Threats?
Economy only perceived, the mall has been revamped and all the shops are full so no further restaurants coming.

8. Reason For Sale
What is the reason for the sale?
Seller has opened a new store and requires the partner to operate the new store

9. Conclusion
Why is this a good business?
Small funky profitable business in a highly desired up market mall that has just been revamped.

What is the price plus stock and the net profit?
R1,950,000 plus R30,000 stock with a average Net monthly profit of R71,000

Other information

Furniture / Fixtures value:

R400,000 (included in the asking price)

Inventory / Stock value:

R30,000 (included in the asking price)