Popular Cocktail Bar And Limited Company For Sale

Business description

A stylish double fronted single storey cocktail bar and bistro that forms the anchor in a sought after Chiang Mai Old City enclave of bars and restaurants that is hugely popular with discerning 25-35 yo local Thais, expats and tourists, who like to have fun and party well away from the girlie and boy bars.

The primary strengths of the business are its unique concept, ideal location, décor, awesome music and party reputation and creative drinks menu. The business also has the envious advantages of having a strong foreigner appeal and a very high female to male customer ratio.

The business is legally structured as a registered Limited Company (est 2007) that allows for the employment of one foreigner who can obtain a Work Permit and a one-year non-immigrant ‘B’ visa. This is a very valuable asset to any foreigner living or wishing to live in Thailand.

The premises are in a great location and already decorated and fitted to a level that is ideal for the purpose. It is a perfect ‘walk-in’ business that a new owner can operate from Day 1 without any further expenditure or effort.

The current owners have built this business with vision and hard work and are selling so as to concentrate on a wholesale business that they built simultaneously and which requires more funds now.

The business is rocking - with October 2009 being the best month since opening - and there are opportunities to undertake a number of simple development tasks that would make the business even better and more profitable and these are outlined in a strategic review that will be presented to the buyer as part of a comprehensive Sale Prospectus.

There is potential for annual net profits of 1.2 million baht on sales of 2.7 million baht. Rental is 12,000 baht a month.

To achieve a quick sale, the asking price has been set at just 750,000 baht (approx $22k) to include the legally registered Limited Company, a turnkey business, fully depreciated assets worth 120,000 baht and Goodwill.

Property information

Real Estate:

Lease

Lease terms:

One year lease, renewable August. Longer lease not possible ad not needed (all bars in the area are on one year leases).

Leasehold rent:

$4,230 per annum

Location:

Established and hugely popular enclave of music bars and restaurants within the Old City of Chiang Mai that is well away from the sex tourist areas

Premises details:

Double fronted single storey with pull down metal doors for nightime security. The enclave has its own security officer at nightime also.

Other information

Expansion potential:

Physical expansion of the premises is not possible. The business itself is open to further development.

Competition / Market:

Local bars, but this place is really unique and so of course there is nowhere else like it, either in the vicinity or within Chiang Mai.

Support & training:

Yes, owners happy to give training on all aspects of the business including food and drinks recipes.

Reasons for selling:

The owners have put a great deal of effort and enthusiasm into creating a great concept and lively place which is currently hitting record revenues. They also have a wholesale food enterprse (unrelated, different premises), which they now want to concentrate on developing further with proceeds from the cocktail bar.

Trading hours:

Currently 6.00pm to 1.00am. Closed Mondays. Can open 7 days if you like.

Furniture / Fixtures value:

$3,500 (included in the asking price)