South East London Profitable Japanese Restaurant Price Reduced For Sale

Business description

Business Details
The particular highlights of the business are:
- Ideally located concern offering excellent lifestyle.
- A well established business.
- Good loyal clientele.
- Fully equipped business with favorable lease terms (see below).
- Turnover in excess of £620,000 with a net profit of £120,000 (see financial summary below).
- A business with great potential which has not been exploited because the owner is concentrating on other business interests.
- An easily run operation.
- Good loyal well trained staff.
- A good first time buyers business.

History
Phoenix Business Transfer Agents are delighted to place onto the market this very profitable Japanese restaurant which has been established since 2006. The business has been in the hands of the current owner since 2009 and he now wishes to sell due to consolidating his other business interests.

Services
This very good business opportunity provides specialised Japanese cuisine with takeaway facilities.

Staffing
The concern employs 10 staff. 5 are full time and 5 are part time. The total wage bill is £52,000 pa. All staff would stay on after a sale if required.

Owners Role
The owner’s role is managerial and he works 6 days a week.

Marketing
The owner is currently not implementing any marketing activity but does have a website.

Competition
As far as competition is concerned there is none in the immediate area.

Market
The client base consists of locals with good customer flow from the nearby rail station.

Opportunities
The concern has huge potential. In particular the turnover and profits can be increased by:
• Increasing the marketing activity with direct mailings and local and internet advertising.
• Becoming more efficient with staffing levels.
• Working more hands on hours and saving on wages.
• If the new owner is a hands on Chef and experienced in Japanese cuisine turnover could be increased by £105,000 per year in salary reductions by reducing the current kitchen staffing levels.
• With an enhanced website.

Training and Handover
The owner would be available for an extensive training and handover period for the benefit of the new owners if required. The owner would also be happy for an on the job observation period to assess the business prior to offers being made.

Property Details
The property is terraced and is part of a parade of shops. The front is branded with an attractive glass front. The main customer service area is tiled. It is very well presented and is very conveniently laid out.

The restaurant has 90 covers. The customer service point is to the centre. There are customer toilets.

To the rear is a store room. There is a toilet, staff facilities and a fully equipped kitchen.

Equipment with sale
All fixtures, fittings and equipment are included in the sale price and are valued at £20,000.

Financial Details
The present turnover is £572,000 per year with a gross profit of £260,000 and a net profit of £52,000. The wages are £52,000. The present value of the stock is £25,000.
The potential turnover of the business within the next 2 years is forecast to reach £650,000 given the changes that are required to be made to the business. Full financial disclosure is available on request after viewings and the signing of a confidentiality agreement.
Please note Phoenix do not guarantee the accuracy of these figures which are in many cases estimated and are not verified. Please do not rely on the accuracy of these figures and seek professional help before making any offers. Phoenix will not be held liable for any inaccuracies in these figures or any other statements contained in relation to this business.

Property information

Property:

Leasehold

Lease terms:

The original length of the lease was 10 years with 6 years remaining. The rent is £16,000 pa with a review in 2014. The lease may be renewable or negotiable for longer term if required. The rates are £5,000 pa.

Leasehold rent:

£16,000 pa per annum

Location:

- Situated in the Jamaica Road area of South East London.
- Prominent location on main arterial road.
- Part of a parade of shops.
- Excellent parking facilities nearby.
- Industrial estates nearby.
- Area earmarked for regeneration.
- Surrounded by a densely populated residential area with schools and other local amenities.
- Local population consists of 29.35% of people fall into Social Grade C1. The second highest proportion of 26.97% belongs to Grade AB, whilst 11.02% fall into Grade E, the least represented band.
- Area offers exceptional lifestyle.
- High levels of passing trade.
- Good volumes of traffic and pedestrian flow.
- Commercially thriving area.
- Well linked with the A200 and A101 with excellent railway links.

Premises details:

The property is terraced and is part of a parade of shops. The front is branded with an attractive glass front. The main customer service area is tiled. It is very well presented and is very conveniently laid out.

The restaurant has 90 covers. The customer service point is to the centre. There are customer toilets.

To the rear is a store room. There is a toilet, staff facilities and a fully equipped kitchen.

Business Operation

Expansion potential:

The concern has huge potential. In particular the turnover and profits can be increased by:
• Increasing the marketing activity with direct mailings and local and internet advertising.
• Becoming more efficient with staffing levels.
• Working more hands on hours and saving on wages.
• If the new owner is a hands on Chef and experienced in Japanese cuisine turnover could be increased by £105,000 per year in salary reductions by reducing the current kitchen staffing levels.
• With an enhanced website.

Competition / Market:

As far as competition is concerned there is none in the immediate area.

Reasons for selling:

Owner wishes to sell due to consolidating his other business interests.

Trading hours:

Monday to Saturday: 12 noon to 10 pm.
Sunday: 5 pm to 10 pm.

Employees:

The concern employs 10 staff. 5 are full time and 5 are part time.

Years established:

4 Years

Other information

Support & training:

The owner would be available for an extensive training and handover period for the benefit of the new owners if required. The owner would also be happy for an on the job observation period to assess the business prior to offers being made.

Furniture / Fixtures value:

£20,000 (included in the asking price)

Inventory / Stock value:

£25,000

Related documents:

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