Summary

This business relocated to the current premises in the 2nd half of 2011 after many years in a location nearby. Although generating limited profits at present,the business will inevitably grow in the months ahead as it becomes established in the new location. Opening in the evenings and catering for functions are opportunities. Excellent opportunity for a hands-on owner with "food" experience to acquire a "springboard" to future success. Priced below asset value at R180,000.

1. History Background

Fully describe the business's activities?

A fully licenced coffee shop, bakery and take away.

How long has the business been established?

The business operated for some 10 years in a shopping mall and recently moved to a new location.

How long has the owner had the business?

Since 2006

2. Present Market

How are the clients attracted to the business?

Advertising in community newspapers, website, sign on road, word of mouth and flyers.

Does the business have any contract work?

No

What competition exists?

There is some competition locally from two businesses, but these are not seen as a threat.

What are the seasonal trends?

Hard to tell in the present location. However the clientele are locals and thus trade is likely to be consistent all year round.

3. Financial

Is the business VAT Registered?

The business is VAT registered and all VAT returns etc are available.

Are there up-to-date Management Accounts available?

Monthly management accounts are prepared shortly after month-end. Figure shown are those since re-location.

What Balance Sheet and Income Statements are available?

2011 financials are available.

What percentage of the business is cash/credit?

100% cash/credit cards.

How could the profitability of the business be improved?

Outside catering. Opening in the evening. Hands-on owner working at the business full-time - cost control, staff motivation etc.

Is Seller finance available and for what amount?

No

4. Staffing

What is the total staff complement?

3 waiters, 5 kitchen staff. NB there is currently a manager in place who could be dispensed with if there was a full-time hands-on owner. Staff costs shown exclude the manger.

Do any receive special perks or incentives?

Pension contributions are paid for 2 staff.

Are they on contract?

Yes

Do any have management potential?

No

How involved is the Owner in running the business?

The owner works at the business on alternate days.

5. Premises

What are the Lease details

There is a 5 year lease expiring in August 2016 with a 5 year renewal option. Escalation 9%. Copy of the lease will be made available to qualified buyers.

What are the trading hours?

Mon - Fri 7 am to 5.30 pm. Sat 8 am to 2 pm. Sun 8.30 am to 2 pm.

What is the square meters of the business?

120 sqm

Do you require a licence?

Liquor Licence in place.

What lease deposit and/or other surety is required?

6. Assets

Is a full asset list on file?

Yes

Are any items not included in the sale?

Yes - Fridges are on loan.

What is their overall condition?

All shop fittings 4 months old. Furniture all recently refurbished.

Do any require repairing?

No

How have they been valued ?

Owners valuation.

Which assets are on lease/HP and with whom?

None

Are they presently insured?

Yes

7. S.W.O.T. Analysis

Strengths?

Good reputation. Personal service. On busy road.

Weaknesses?

Shopping centre in which the business is located is small.

Opportunities?

Outside catering. Functions. Open in the evenings.

Threats?

None perceived.

8. Reason For Sale

What is the reason for the sale?

Pregnancy

9. Conclusion

Why is this a good business?

Good reputation. Good position. New fit out. Long lease.