Fully describe the business's activities?
Tea Garden in tranquil settings within a large garden in a large Garden Route Town, far away from the normal business environment. The business offer teas and light meals, from sandwiches to larger meals. Although the kitchen facilities are somewhat limited compared to full restaurant requirements, it is manageable for the range on the menu, and as such has a very strong following. The dining facilities are exceptional as children are able to play safely within eyesight but away from the diners, and the business is also pet friendly too which is an added advantage in the area. Often used for groups meeting, and a popular refreshment pace for Park Runners and hikers etc, this business has a large customer base and is a popular venue for old and young, families and friends as a meeting place.
How long has the business been established?
Originally started privately about 5+ years ago, the current Owners have had it for over two years now.
How long has the owner had the business?
2 years plus
How does the business operate on a daily basis?
The business is managed by a retired Director of the holding company. There is a staff structure in place with Supervisor and chefs, waitrons etc.
How are the clients attracted to the business?
A strong Face Book following, and well known in the town as a tranquil meeting spot with safe parking, where you can relax and chat for as long as you like out in the open under the trees, or under the tarpaulin in the event of wet weather. A website is also in place.
What Advertising/Marketing is carried out?
Local Newspaper advertising only utilised when there are special functions, such as the nite market once a month, or musical performances etc.
Does the business have any contract work?
No, but is used by business groups, charities, sports groups etc on a regular basis.
What competition exists?
There is no direct competition with a few km's of this business, and very few with the facilities that this one offers.
What are the seasonal trends?
As with all businesses in this region, weather plays a role, and the outdoor dining is more conducive to summer than winter. Winter still shows consistent turnover, and when the weather is really inclement, then diners may dine indoors although this is not ideal.
Is the business VAT Registered?
The holding company of this business is vat registered.
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
Subject to a qualified Buyer showing proof of funds prior to the Due Diligence process, as financials form part of larger parent business.
What percentage of the business is cash/credit?
70% credit card and 30% cash at favourable commission rates
How could the profitability of the business be improved?
More advertising and a change of menu. Sourcing of more functions and also theme evening or special promotions.
Who is the bookkeeper/Accountant?
What is the total staff complement?
8 without Owner
Do any receive special perks or incentives?
The Waitrons keep cash tips, but credit card tips are shared with the kitchen staff.
Are they on contract?
Normal Conditions of Employment.
Do any have management potential?
Yes, there is a very capable supervisor in place who is capable of being promoted.
How involved is the Owner in running the business?
Currently the Owner/ Manager is a semi-retired Director of the holding company. He oversees all the General Management functions.
When does the current lease end?
Is there an option of renewal & what period?
Yes, subject to negotiation
What is the annual escalation %?
Who is the Owner/Landlord?
Botanical Gardens Trust
Is a copy of the lease available?
Do you require a licence?
The Landlord hold the liquor license. There are all the required health certificates in place.
What lease deposit and/or other surety is required?
What are the main assets of the business?
Outdoor equipment such as tables and chairs and a large tent / tarpaulin, jumping castle etc. Inside there is the kitchen equipment and point of sale system. Coffee machine on a payment plan monthly (Hire to own).
Are any items not included in the sale?
Some of the outdoor tables and chairs belong to the landlord. There are 2 fridges that are on consignment. Owners laptop is excluded.
What is their overall condition?
All in good working order.
Do any require repairing?
How have they been valued ?
Owners second hand value.
Which assets are on lease/HP and with whom?
The coffee machine is on a rent to own basis at R150 per month
Will Seller settle or Buyer to take over?
Buyer may take over.
Are copies of agreements available?
Are they presently insured?
Tranquil gardens setting. Away from town location under trees with mountain views. Adjacent to nursery with inter-leading access. Child friendly with jumping castle in safe area just away from diners. Pet friendly which is a big plus. Comprehensive menu with kiddie menu but reasonable pricing. Used as a breakfast, tea or lunch venue but wide range of diners, individuals or groups.
As with all businesses of this nature, staff are an ongoing area that requires management. A hands on Owner will eliminate much of the issues that occur. The current Owner / Manager is not experienced in food preparation. Although a tent in place, very cold weather can impact on diners, although heaters have not been introduced previously.
More event co-ordination and activity. Increased menu offering. More regular night market introduction. Outside catering opportunities.
The location of this business and the holding of a lease will eliminate any general threats. Poor performance of the Owner is the only threat.
What is the reason for the sale?
This tea room was bought 2 years ago under the umbrella of a larger events equipment hire and coordinator in the region. It was then decided that the business founder and now semi-retired Director would oversee this business. However, the exponential growth and demands have necessitated that new management take over as the Director feel that he would like to retire fully.
Why is this a good business?
This is a very good business for somebody with catering / food experience who enjoys interacting with people and with a passion for serving food such as breakfasts, teas and cakes etc, and who will fully utilise the facilities and the needs of the diners. With low overheads and excellent outdoor facilities, it can generate a substantial income with really pleasant working conditions.
What is the price plus stock and the net profit?
Price is R580,000 and stock varies around the R25,000 mark. Average monthly profit is around R20,000
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