Fully describe the business's activities?
A relaxing bar and grill style restaurant, with contemporary stylish decor and high definition televisions. Situated in a busy shopping village in the Cape Town Northern suburbs, with a view back to Table Mountain. The restaurant has gained a reputation as being a "must visit" in the area. This is one of three businesses operating under the same name, the other two being in a coastal holiday town. The owners are willing to sell the businesses individually or all three as a package deal.
How long has the business been established?
The owners started the business in 2013, following on the success of their two other restaurants.
How does the business operate on a daily basis?
The business is opened and closed by the two Managers working in shifts. The owner visits the business on a fortnightly basis. The operating hours are from 10h00 to 02h00, seven days a week.
How are the clients attracted to the business?
Largely by word of mouth.
What Advertising/Marketing is carried out?
The business has a website, Facebook page, and prominent location.
What competition exists?
There are other restaurants in the area, but nothing in a similar local bar and grill style.
What are the seasonal trends?
Business is steady throughout the year.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
Yes, to July 2017.
What Balance Sheet and Income Statements are available?
To February 2017.
What percentage of the business is cash/credit?
All business is cash or credit cards.
How could the profitability of the business be improved?
Closer supervision by the owner.
Is Seller finance available and for what amount?
What is the total staff complement?
10 excluding the owners.
Give a breakdown of staff/ functions/ length of service?
2 managers - 1 per shift; 2 barmen; 4 kitchen staff; 2 waiters. Casual staff are employed during busier times.
Are they on contract?
Yes - all necessary documentation complying with labour legislation is available.
Do any have management potential?
Yes - there are two managers currently operating each shift.
How involved is the Owner in running the business?
The owner spends 1 day every second week at the business. He is responsible for the administration of this business, along with the two other similar businesses, but no longer has a hands-on daily role.
When does the current lease end?
The lease ends in 2018. There is an 8% annual escalation and an option to renew the agreement.
Do you require a licence?
The business requires a liquor licence and general trading licence. These are both in place.
What lease deposit and/or other surety is required?
1 month's rental and a personal surety.
What are the main assets of the business?
Furniture and fittings, kitchen and bar equipment typical of a bar and grill style restaurant.
Are any items not included in the sale?
No. Certain fridges and vending machines belong to beverage distributors.
What is their overall condition?
Do any require repairing?
How have they been valued ?
Owner's valuation of fair, net realisable value.
Well established with a good reputation. Good location in a busy centre. Reliable staff with good management in place.
Being in a different town to the owners other two restaurants, the owners do not spend much time at the business.
With a more hands on approach from a new owner sales can be grown significantly. The business could benefit from increased advertising.
What is the reason for the sale?
The owners have other business interests and want to exit the restaurant business.
Why is this a good business?
This is an established business with a good reputation, generating a strong cash flow.
What is the price plus stock and the net profit?
R1.87 million including stock of R90k. The business generated a profit of R583K in the last financial year.
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