Franchised Steak House Restaurant And Pub For Sale

Business description

Summary

1. History Background
Fully describe the business's activities
Fully licenced franchised family Restaurant and Pub

How long has the business been established
8 years,

How long has the owner had the business
3 years

2. Present Market
How does the business operate on a daily basis
Open 7 days a week to families and children, students,businessmen,sportsmen and women .

How are the clients attracted to the business
Good franchise food specials-very good quality and value.Entirely refurbished with an excellent bar and smoking areas.Very popular with Sport enthusiasts and families alike.Well established and renowned.

What Advertising/Marketing is carried out
Franchise TV and in-store advertising

What competition exists
None nearby offering the vast menue and bar facilities

3. Financial
Is the business VAT Registered
Yes

Are there up-to-date Management Accounts available
Yes

What Balance Sheet and Income Statements are available
The last 2 years managements accounts and financials year end Feb

What percentage of of the business is cash/credit
40% cash,60% credit

How could the profitability of the business be improved
Wider advertising of food and bar specials.One-man band entertainment which attracts patrons and increases food consumption.Advertising at the nearby sports grounds.

Is Seller finance available and for what amount
No

What is the payback period
30 months,which is excellent for a well established big brand franchise

What is the ROI
35%

4. Staffing
What is the total staff complement
4 managers,20 kitchen staff,6 barmen

Are they on contract
Yes

Do any have management potential
Possibly-needs to be discussed with the current owner

How involved is the Owner in running the business
Fairly extensive involvment 7 days per week

5. Premises
When does the current lease end
May 2012

Is there an option of renewal & what period
Yes,for another 5 years

What is the annual escalation %
9%

What are the trading hours
08h00-late Monday to Sunday

What is the square meterage of the business

Is a copy of the lease available
Yes

Do you require a licence
Liquor licence

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,Premises and bar area recently refurbished.Ongoing repairs and maintenance

Do any require repairing
Not evident

How have they been valued.
Yes,at cost

Are they presently insured
Yes

7. S.W.O.T. Analysis
Strengths
Well established franchise with ongoing repeat business.Very settled community and business patrons.Close to a prominent Sports facility.Prime location on a main through road with excellent visibility.Caters for students,businessmen,sportsmen,families,children

Weaknesses
Decreased spending with the econmic downturn

Opportunities
Increased local promotion,and entertainment.Create special functions.

Threats
None apparent

8. Reason For Sale
What is the reason for the sale
Owner runs two restaurants and would like to spend more time with a young family

9. Conclusion
Why is this a good business
Well priced,established good franchise.

What is the price plus stock and the net profit
R 2,217,000 inclusive of all furniture,equipment and office equipment, plus stock R 95,471

Property information

Location:

Randburg

Other information

Furniture / Fixtures value:

R1,000,000 (included in the asking price)

Inventory / Stock value:

R100,000