Sectors / Category

Annual turnover

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  • Mandate: 31222
  • Added: 02 Feb 2019
  • AFS
  • 917

Popular Family Restaurant & Entertainment Centre

Western Cape, Cape Town
917
Mandate 31222
Added 02 Feb 2019
R 1,650,000* ZAR
Stock: R 50,000
Assets: R 1,300,000
R 65,699 ZAR
Kutu Venter
(PRINCIPAL)
Aldes Alpha
Western Cape
Western Cape
Summary

This restaurant is well established and popular as an indoor party venue for kids, and as a family restaurant where friends can get together for a meal while the kids are supervised in a safe play area. Good cash flow. Fully licensed. Offers great food, a cigar lounge, pool tables, coin operated slot machines and more. Evening and week-end trade offer good potential for growth. Average NP R65,600 p.m. Price R1,600,000 plus stock +- R50,000.

SELLING PRICE AFS
R 1,650,000* ZAR
Stock: R50,000
Assets: R1,300,000
R 65,699 ZAR
Summary

This restaurant is well established and popular as an indoor party venue for kids, and as a family restaurant where friends can get together for a meal while the kids are supervised in a safe play area. Good cash flow. Fully licensed. Offers great food, a cigar lounge, pool tables, coin operated slot machines and more. Evening and week-end trade offer good potential for growth. Average NP R65,600 p.m. Price R1,600,000 plus stock +- R50,000.

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Fully describe the business's activities?
This fully licensed restaurant/family entertainment center offers parents and friends a chance to enjoy enough time for a great meal, with good adult company, whilst the kids are busy and safe in their own play world. Open for Breakfast, Lunch and Dinner. They have a large indoor play area for the kids. All the activities are supervised by trained attendants and everything is cleaned and disinfected daily. High Tech electronic tagging for every child ensures safety and security while at Blasters. Ideal venue for children’s themed birthday parties and the main upstairs restaurant is available for adult parties and functions for up to 200 people. The Arcade centre is available to all clients and machines are coin operated. Pool tables offer entertainment to young and old. There is also a Cigar lounge available for smokers or for hosting private functions for smaller groups.

How long has the business been established?
The business was established in June 2014.

How long has the owner had the business?
Since inception.

How does the business operate on a daily basis?
Breakfast, lunch and dinner are served daily from Tuesday to Sunday. Online and telephone requests for hosting of children's parties are responded to and booked. Stock control, cleaning and supervision over play area also take up a substantial portion of the day.

How are the clients attracted to the business?
The business is very visible from the street front. Word of mouth. Active Facebook page with more than 3000 followers.

What Advertising/Marketing is carried out?
They advertise specials on Facebook. They are also very involved with creches and schools in the area and hand out play vouchers.

What competition exists?
There are other family restaurants with play areas for children, but there is nobody that offers entertainment for the whole family. Fully licensed, great food, supervised play area, cigar lounge, pool tables, coin operated slot machines... they have it all.

What are the seasonal trends?
Turnover peaks during winter because it is an indoor venue offering great entertainment to young and old.

Is the business VAT Registered?
The business is VAT registered

What VAT documentation is on file?
Up-to-date VAT returns are on file and will be made available during Due Diligence.

Are there up-to-date Management Accounts available?
Up-to-date Management Accounts are on file and available on request.

What Balance Sheet and Income Statements are available?
AFS 2016 and 2017 are on file and available on request.

What percentage of the business is cash/credit?
100% cash.

How could the profitability of the business be improved?
Turnover could be improved by improving evening trade and focus on young professionals for after-work drinks. At present the impression is that the business focus on kids' entertainment. The business would benefit from advertising / marketing dinner.

What is the total staff complement?
+- 26 permanent staff with additional casual staff during season

Give a breakdown of staff/ functions/ length of service?
Managers X 2 FOH X 11 Runner X 1 (full-time) Chefs X 3 Kitchen staff X 9

Do any receive special perks or incentives?
One of the Managers receives commission on birthday parties

Are they on contract?
Yes

Do any have management potential?
There are two managers.

How involved is the Owner in running the business?
The owner is involved in the business full-time.

When does the current lease end?
3 years remaining of a 7-year lease agreement.

Is there an option of renewal & what period?
Yes. Period to be negotiated with the landlord.

What is the annual escalation %?
8%

What are the trading hours?
Trading hours: 10h00 – 22h00 Tuesday - Friday 09h00 – 23h00 Saturday 10h00 – 18h00 Sunday Closed Mondays, except Public & School Holidays

What is the square meters of the business?
1340 sqm

Is a copy of the lease available?
A copy of the lease is on file and will be made available during Due Diligence.

Do you require a licence?
Liquor licence.

What lease deposit and/or other surety is required?
Deposit at present R246,000.

What are the main assets of the business?
Jungle Gym (imported) Kitchen equipment.

Are any items not included in the sale?
SAB and Coke fridges belong to suppliers. Pool tables (x3) and arcade games belong to a Chinese company. Profits are split 50/50

What is their overall condition?
All equipment is maintained regularly and is in good working order.

How have they been valued ?
Depreciated book value.

Which assets are on lease/HP and with whom?
All assets are fully paid for.

Are they presently insured?
All assets are fully insured.

Strengths?
• Good cash flow • Family oriented business - offers something for everybody • Core of good and loyal staff • Managers longstanding employees • Popular for birthday parties which offer great profits

Weaknesses?
Emphasis on 'family' has negative impact on evening/week-end trade; Shrinkage a reality in the food industry, but it is well controlled by weekly stock take, and daily stock take for kitchen and bar. Stock reconciliation is done once per week. Shortfalls are taken off salaries if they fail to provide a good reason for the shortfall.

Opportunities?
• Young professionals offer an opportunity to be explored • Centre management is changing from decor centre to more balanced tenant range which will benefit the business • The business will benefit from an extensive advertising and marketing drive to improve evening and week-end trade

Threats?
None perceived.

What is the reason for the sale?
One of the Directors who was managing the business on a day-to-day business, has accepted an international job offer. It was subsequently agreed by all the Directors to sell the business.

Why is this a good business?
The business is well established with both suppliers and customers and very popular for kids birthday parties. Evening and week-end trade offer good potential for growth. The business has good cash flow.

What is the price plus stock and the net profit?
Asking price R1,600,000 plus stock +- R50,000.

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FRANCHISE DETAILS

Aldes Alpha

2 members
12 active mandates
Western Cape
Galleon Beach, Pelican Parade
7530

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