Fully describe the business's activities?
The business is a restaurant/coffee shop operating in the upper highway area of Durban.
How long has the business been established?
The business has been established for 2 years.
How long has the owner had the business?
The owner established the business.
How does the business operate on a daily basis?
As a restaurant, the business opens for Breakfast at 6h30 and closes at about 4:00 in the afternoon. This creates the opportunity to open at night.
How are the clients attracted to the business?
The business offers a unique menu. All food is prepared in a wholesome manner and includes organic ingredients. The restaurant appeals to the health conscious consumer who has little other choice in the area.
What Advertising/Marketing is carried out?
Very little advertising is carried out other than maintaining social media sites.
Does the business have any contract work?
As a restaurant there is no contract work.
What competition exists?
While there is always competition in the restaurant business, the unique menu offering of this restaurant places it in its own category.
What are the seasonal trends?
There are little seasonal trends with a slight increase in sales over the December/January holidays.
Is the business VAT Registered?
What VAT documentation is on file?
All Vat Documentation is on file.
Are there up-to-date Management Accounts available?
Up to date Management Accounts are available.
What Balance Sheet and Income Statements are available?
Feb 2018 Balance Sheet and Income Statement are with the auditors at present.
What percentage of the business is cash/credit?
Approximately 85% of customers pay with credit cards and the remainder with cash. As a restaurant there are no debtors accounts.
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
The greatest opportunity lies in opening the restaurant at night to provide organic based meals to health conscious customers who are looking for an alternative to the normal evening fare.
Is Seller finance available and for what amount?
Seller finance is not available.
What is the total staff complement?
The restaurant employs a total of 17 people to cover the shifts at present.
Give a breakdown of staff/ functions/ length of service?
2 Managers 2 Barristers 7 Kitchen Staff 6 Waiters
Do any receive special perks or incentives?
No staff receive special perks.
Are they on contract?
All staff have employment contracts applicable to the industry.
Do any have management potential?
The company has 2 competent managers who manage the daily running of the restaurant.
How involved is the Owner in running the business?
The owner's role is limited to an oversight function as she has a larger business in another field to manage. In addition to financial oversight she maintains oversight over the quality of ingredients, cooking methods and menu of the restaurant.
When does the current lease end?
The business is currently on a month to month lease with a landlord who is anxious to sign a longer lease with the new tenant.
Is there an option of renewal & what period?
This will be negotiated with a new owner prior to the purchase taking effect.
What are the trading hours?
At present the restaurant trades from 6h30 to 4h00pm.
Is a copy of the lease available?
A new lease is required.
Do you require a licence?
No license is required unless the new owner intends to sell liquor.
What lease deposit and/or other surety is required?
To be negotiated with the landlord.
What are the main assets of the business?
The main assets are cooking equipment, chairs and tables and coffee machines.
Are any items not included in the sale?
All equipment used in the restaurant is included in the sale.
What is their overall condition?
All equipment is maintained in good working condition.
Do any require repairing?
No equipment requires repairing at this stage.
How have they been valued ?
All equipment is valued at replacement cost.
Which assets are on lease/HP and with whom?
There are currently no assets on hp/lease.
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
All equipment is insured.
The business has tapped into a growing demand for healthy food that is produced from organic ingredients and prepared in a healthy manner. The restaurant is also manager run which frees up the owner to concentrate on other activities.
The only weakness is the lack of additional parking at the centre where this restaurant is located. Customers often park in the centre next door and walk to this restaurant.
The biggest opportunity is to open a night time dinner service. As the overheads are supported by the morning and lunchtime trade, this should add significant profit from the outset.
Their is always the threat of someone opening a similar restaurant in the vicinity.
What is the reason for the sale?
The owner is required to work in a significantly larger family business that is requiring all of her time and effort. She is of the opinion that while this business has offered her significant growth in returns, it does need someone who can devote more time to it than she is currently able to.
Why is this a good business?
This business has grown in a short time due to its commitment to organic ingredients and healthy menu. A new owner with the same values regarding healthy eating would continue to experience this growth. Additional growth from a dinner trade would add to this. The new owner would not however be required to invest significant time in the business as management staff are in place to handle day to day issues.
What is the price plus stock and the net profit?
The price of the business is R830,000 plus stock and is currently making an annual return of R328,000.
Discover similar, inspiring businesses for sale
Annual Turnover Amount between R 500 thousand and R 6 million