Established Leasehold Cafe In Central London For Sale

Business description

The particular highlights of the business are:
- A well established business.
- Good loyal clientele.
- Fully equipped business with favorable lease terms (see below).
- Turnover in excess of £145,000 with a net profit of £7,500. (See financial summary below).
- A business with great potential which has not been exploited because the low staffing levels have restricted the growth of the business.
- An easily run operation.
- A good first time buyers business and ideal purchase for a partnership.
- Low rent and rates.
- Very low overheads.
- Business enjoys superb local reputation.
- The concern provides hot and cold drinks, breakfasts, sandwiches, hot lunches, cakes, pastries and deserts.

History
Phoenix Business Transfer Agents are delighted to place onto the market this Leasehold Café in Central London which has been established since 1966. The business has been in the hands of the current owner since 2003 and he now wishes to sell due to other business interests.

Services
This very good business opportunity provides and cold drinks, breakfasts, sandwiches, hot lunches, cakes, pastries and deserts.

Staffing
The concern employs no staff.

Owners Role
The owner is involved in the day to day running of the business.

Marketing
No marketing or promoting of the business has recently been undertaken as the business is well known.

Competition
There is no local competition.

Market
The client base consists of local residents with a high level of office, retail workers and passing trade.

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.
• Increasing the opening hours to include Sunday trading.
• Increasing the services to include contract catering, deliveries and outside catering.
• Becoming more efficient with staffing levels.
• With the introduction of a website and e-commerce.

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.


The present annual turnover is £150,000 with a gross profit of £78,000 and a net profit of £7,500. The present value of the stock is £1,000.
The potential turnover of the business within the next 2 years is forecast to reach £225,000 pa 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.


Disclaimer
These details do not constitute part of an offer or contract.
The statements and descriptions given are made without warranties by Phoenix Business Agents Limited who it should be noted have NOT verified the information provided.
Purchasers should in all cases undertake financial due diligence using their own professional advisors before committing themselves in contract rather than relying on illustrations ,figures and information given on behalf of the seller.

Property information

Property:

Leasehold

Lease terms:

The original length of the lease was 11 years with 3.5 years remaining. The rent is £20,800 pa. The lease may be renewable or negotiable for longer term if required. The rates are £8,700 pa including the studio flats.

Leasehold rent:

£20,800 per annum

Living accommodation:

On the first and second floors there are two studio flats which generate £19,200 pa of revenue which effectively covers the rent of the café.

Location:

- Situated in the Old Street area of Central London.
- Prominent location on main arterial road
- Part of a parade of shops.
- Excellent parking facilities nearby.
- Surrounded by a densely populated residential area with schools and other local amenities.
- High levels of passing trade.
- Good volumes of traffic and pedestrian flow.
- A commercially thriving area.
- Well linked with the A1, A5021, A201 and A501.
- Clerkenwell, Finsbury, The Barbican and Moorgate all lie close by.
- A lifestyle area.
- Excellent local demographics for this type of area.

Premises details:

The property is terraced and is part of a parade of shops and is approximately 500 sq ft. The front is branded with an attractive glass front. The main customer service area is tiled and it is very well presented and is very conveniently laid out.

The café has 30 covers. The customer service point is to the left. There is an overhead menu.

In the basement there is a store room. There is a toilet and staff facilities.

Size in square feet:

500sq ft

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.
• Increasing the opening hours to include Sunday trading.
• Increasing the services to include contract catering, deliveries and outside catering.
• Becoming more efficient with staffing levels.
• With the introduction of a website and e-commerce.

Competition / Market:

There is no local competition.

Reasons for selling:

wishes to sell due to other business interests.

Trading hours:

Monday to Friday: 7am to 5pm
Saturday: 8.30am to 2pm
Sunday: Closed

Employees:

The concern employs no staff.

Years established:

45yrs

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:

£50,000 (included in the asking price)

Inventory / Stock value:

£1,000