Fully describe the business's activities?
Neat newly renovated Wimpy located in Pretoria CBD. Ample seating and no smoking area. The restaurant does delivery as well and this can be marketed more to increase sales. There are lots of empty buildings in and around the business which will be filled within the next 3 to 6 months. This includes a building specifically for 2 and 3 bedroom flats of 112. This will increase evening trade and profits.
How long has the business been established?
The Wimpy has been operating from this site for over 40 years
How long has the owner had the business?
The current owner bought it 10 Years ago.
How does the business operate on a daily basis?
The restaurant is open during office hours with a manager in place to open or close when needed. It can currently seat about 100 people. The staff is very well trained as per the Franchisor requirements.
How are the clients attracted to the business?
Wimpy is a national brand and well known in this area. The revamp has increased the visibility of the shop with new signage and a better look.
What Advertising/Marketing is carried out?
The head office handles most of the marketing through TV adverts, Newspaper ads, and radio.
Does the business have any contract work?
No all are walk in clients, they do deliveries to buildings around the restaurant.
What competition exists?
There are a number of take away businesses and restaurants in close proximity to the Wimpy but the area does allow for so many as it is extremely busy.
What are the seasonal trends?
December, Easter and public holidays are normally very quite. This will change with the flats being build across the street.
Is the business VAT Registered?
Yes the business has been VAT registered since the begining.
What VAT documentation is on file?
VAT Returns will be available for potential buyers.
Are there up-to-date Management Accounts available?
Not yet, we are waiting on the franchisor with it's DCF reports.
What Balance Sheet and Income Statements are available?
Feb 2018 is available with te seller.
What percentage of the business is cash/credit?
Cash 50% Card 50%
What is the age analysis of the debtors book?
Not applicable, the clients has to pay before they leave.
How could the profitability of the business be improved?
The liquor license has been approved and they have been selling liquor which increased turnover. The revamp will also increase turnover by 30% which will start happening now.
Is Seller finance available and for what amount?
The seller is not open to any structured transaction.
What is the total staff complement?
14 Staff members in total
Give a breakdown of staff/ functions/ length of service?
1 Manager 2 grillers 2 soft serve 2 kitchen staff 5 waiters
Do any receive special perks or incentives?
Are they on contract?
Do any have management potential?
The manager in place does handle a lot of responsibility.
How involved is the Owner in running the business?
The owner is involved daily with all aspects of the business.
When does the current lease end?
a New lease has recently been signed until 2021
Is there an option of renewal & what period?
There is an option to renew for another 5 years.
What is the annual escalation %?
8% per year
What are the trading hours?
Monday to Friday 06h00 to 17h00 Saturday 07h00 to 15h00 Closed on Sundays and Public Holidays
What is the square meters of the business?
+/-100 square meters
Is a copy of the lease available?
Yes with the seller.
Do you require a licence?
a Liquor Licence is in place.
What lease deposit and/or other surety is required?
One months rental deposit is required of +/-R30 000.00 Franchise Joining fee of +/-R100 000.00
What are the main assets of the business?
Catering equipment and kitchen equipment
Are any items not included in the sale?
All items are included.
What is their overall condition?
Good working conditions.
Do any require repairing?
No all equipment is regularly serviced
How have they been valued ?
Second hand value
Which assets are on lease/HP and with whom?
No assets are on lease or HP The coffee machine belongs to the Franchisor
Are they presently insured?
This is a famous brand in South Africa The business is extremely well known and well established
Low profits currently but this will increase because of the revamp
With the revamp you can expect a 30% increase in turnover The liquor license will greatly increase turnovers There are new residential development happening close to the restaurant meaning you can increase you hours and therefore turnovers.
What is the reason for the sale?
The seller owns another restaurant and wants to focus on that and reinvest in it with the capital from this sale.
Why is this a good business?
The business is very well established and known in the area. It is a Wimpy with still great opportunities.
What is the price plus stock and the net profit?
The business is priced at R2 250 000.00 including stock of about R50 000.00 and an average monthly profit of R72 000.00.
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