Franchised Restaurant And Pub For Sale

Business description

History Background
Fully describe the business's activities?
This business offers a full PUB & Restaurant service
How long has the business been established?
The Owner established the business more than 10 years ago
What steps are in place to solve "load shedding" problems?
There is a 165 kw generator worth R200 000 to deal with any load shedding problems.
Present Market
How does the business operate on a daily basis?
This PUB & Restaurant is the perfect hub for business people to meet and relax in an enviroment that is both warm and friendly. It is also ideal for young adults and families. Is very busy during major sport events.
How are the clients attracted to the business?
Situated in a well known Mall in West Rand, and is part of a well known franchise. Estabished a strong client base over the 10 years since opening.
What Advertising/Marketing is carried out?
The Franchisor advertises in the media and TV.
What competition exists?
Many restaurants exists in the Mall,
What are the seasonal trends?
No seasonal trends.
Financial
Is the business VAT Registered?
The business is Vat registered.
What VAT documentation is on file.?
Available from the owner.
Are there up-to-date Management Accounts available?
Management accounts are available.
What percentage of of the business is cash/credit?
70% Cash and 30% credit cards.
How could the profitability of the business be improved?
Advertising in the local news paper.
Staffing
What is the total staff complement?
Total of 42 staff Members
Give a breakdown of staff/functions/length of service?
5 Managers: 1 x Kitchen Manager (8 Years), 2 x Shift Managers (2 Years), 1 x Bar Manager (10 years) 1 x General Manager ( 3 years) 20 x Waiters, 5 x Bar staff, 12 x Kitchen workers.
Do any receive special perks or incentives?
The Managers receive incentives
Are they on contract?
All workers on contract, except the Waiters who are on commission.
How involved is the Owner in running the business?
Owner involved in the business on a daily basis.
Premises
When does the current lease end?
April 2011
Is there an option of renewal & what period?
There is a option to renewal for further 5 years.
What is the annual escalation %?
9%
What are the trading hours?
Open 7 days a week from 09h00 to 24h00. Kitchen close at 23h30.
What is the square meterage of the business?
440 m2
Is a copy of the lease available?
Available from owner
Do you require a licence?
Liquor , TV
Assets
Is a full asset list on file?
A full list available from owner
Are any items not included in the sale?
Yes, owner will give details
What is their overall condition?
All is in working condition
How have they been valued. ?
Owners valuation
Which assets are on lease/HP and with whom?
No assets on HP or Lease
Are they presently insured?
All assets are insured.
S.W.O.T. Analysis
Strengths?
Well known franchise, established for more than 10 years
Weaknesses?
None
Opportunities?
More advertising
Threats?
There is a lot of other restaurants in the Mall,
Reason For Sale
What is the reason for the sale?
Owner want to retire.
Conclusion
Why is this a good business?
Well known brand, and well known in the area.
What is the price plus stock and the net profit?
R3 342 000 plus stock of R100 000

Other information

Furniture / Fixtures value:

R2,500,000

Inventory / Stock value:

R100,000 (included in the asking price)