Fully describe the business's activities?
The business is a popular Italian franchise restaurant in the East of Pretoria. The restaurant is situated within a busy shopping centre close to a large residential area, schools and other major attractions which drives business to the store. The store do deliveries but are more focused on attrating sit-in customers. The business is well known in the area and predominantly manager run.
How long has the business been established?
The business has been established since 1996.
How long has the owner had the business?
The owner took over the business in 2011.
How does the business operate on a daily basis?
The business is mainly manager-run with the owner only being involved in the overall management of the business and not in the daily operation of the business. They manager is responsible for all operational duties such as stock take, ordering and payments. The business main trade is for lunch and evenings and they also do deliveries in and around the area.
How are the clients attracted to the business?
Most of their customers are regulars, that has been visiting the restaurant for years. The restaurant is well known in the area, its a fantastic location within a wealthy neighborhood.
What Advertising/Marketing is carried out?
The Franchisor does most of the advertising and marketing for the Franchisee. They have regular specials and marketing campaigns which is run nationally. With regards to local marketing the owner a small signboard close to a one of the local schools in the area.
What competition exists?
No direct competition in the centre or area exist.
What are the seasonal trends?
During December and some of the school holidays the business seem to be a bit more quiet. However, the business income is very stable.
Is the business VAT Registered?
What VAT documentation is on file?
All VAT documentation are on file with the accountant.
Are there up-to-date Management Accounts available?
The owner has provided Aldes with his in-house management accounts. All information regarding the monthly and daily sales and purchases can be confirmed from their POS-system.
What Balance Sheet and Income Statements are available?
The accountant is in the process of drafting the annual financial statements.
What percentage of the business is cash/credit?
80% - Card 20% - Cash
How could the profitability of the business be improved?
A new owner can focus on doing more local marketing, advertising and introducing a breakfast menu to clients.
Is Seller finance available and for what amount?
No this will not be an option.
What is the total staff complement?
21 staff members.
Give a breakdown of staff/ functions/ length of service?
17 x Kitchen 3 x front of house 1 x manager 7-8 casuals staff members on commission
Do any receive special perks or incentives?
All staff receive a basic salary and they are on a commission structure.
Are they on contract?
Do any have management potential?
The owner has a manager in place and he is very satisfied with her performance.
How involved is the Owner in running the business?
The owner has not been actively involved in the business the past year.
When does the current lease end?
The current lease will only end in 2022.
Is there an option of renewal & what period?
There is an option to renew for another 5 years.
What is the annual escalation %?
Annual escalation of 7%.
What are the trading hours?
Monday -Thursday 10h00 to 22h00 Friday 10h00 to 23h00 Saturday 10h00 to 22h00 Sunday 10h00 to 21h00
What is the square meters of the business?
Is a copy of the lease available?
Yes this can be provided.
Do you require a licence?
A new owner would need to be approved by the franchisor.
What are the main assets of the business?
The owner will provide a full asset list estimate value of approx R2.5 million in value. This includes all kitchen equipment, fridges, coffee machines, tables and chairs, and delivery bike. All assets will be included in the sale.
What is their overall condition?
Everything is in a good and working condition, none need repairing.
How have they been valued ?
Owners valuation has been used.
Are they presently insured?
The business has comprehensive insurance cover.
- Great Location in the east of Pretoria; - Manager run business; - Strong franchise brand
- The market is very reliant on the economy.
- More local/area marketing and in-house specials; - Extended hours, incorporate a breakfast menu; - Expand the deliveries.
What is the reason for the sale?
Owner is emigrating.
Why is this a good business?
The business is a popular Italian restaurant franchise situated in a busy shopping center in the East of Pretoria. This specific store has been the top performing franchise in Pretoria and is mainly manager run. Great profits, good systems in place and growth potential
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