Fully describe the business's activities?
A lovely deli / restaurant in a beautiful setting in the culinary mecca of South Africa. At the 68-seater restaurant there is a display fridge filled with banting-friendly-, vegan- and gluten-free products. Shelves are loaded with an assortment of condiments, preserves, spices,oils and vinegar's for that extra special salad dressing. On the counter you will find freshly baked pies and quiches ... or pre-order their famous gluten free bread. The freezer is filled with delicious heat-and-eat meals ready to take home including traditional meals. The deli also does platters for functions etc. The restaurantâs menu is varied and includes salads, burgers, breakfast and fish, there is a take away menu and pensioner's discount arrangement. Add the fun-filled kiddies area and you offer a full family package of fun!
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
The business is operated and managed by the two owners supported by a well trained team of staff. At any point in time, one of the owners will be present. The pleasant environment and classy setting ensures constant walk-in trade and a lot of the business is return-customers and referrals. The business hours are manageable.
How are the clients attracted to the business?
Apart from social media and loyalty programmes, the business is well located at the main entrance to town and in a beautiful centre surrounded by complimenting shops.
What Advertising/Marketing is carried out?
Facebook. Website. Instagram. Printed media. Tourism board.
Does the business have any contract work?
No specific contract work but they are the go-to-business for function catering for which there is a fair demand.
What competition exists?
This business not only made it's mark in a town with a number of hospitality businesses, it has created a niche market and is continually growing, making it a stand-out operation.
What are the seasonal trends?
Business blossoms over festive- and during international tourism seasons / holidays which stretches from October thru the Easter.
Is the business VAT Registered?
Yes and all VAT documentation is on file.
Are there up-to-date Management Accounts available?
Management accounts are kept current.
What Balance Sheet and Income Statements are available?
Annual financial statement FYE February 2018.
What percentage of the business is cash/credit?
How could the profitability of the business be improved?
Extend the business hours, also to benefit more from the liquor license e.g. by having cocktail hours. The demand for outside catering to visiting families in a untapped market.
Is Seller finance available and for what amount?
No seller finance available.
What is the total staff complement?
The team of 8 consists of a senior and junior chef with 2x food assistants, a barista, sculler and 2x waiters.
Are they on contract?
Normal labour legislation applies.
Do any have management potential?
Currently the potential is undeveloped ... at most there is a staff member that can man the shop if the owner has to run a quick errand or two.
How involved is the Owner in running the business?
The business is currently run by two partners of whom one is present and involved at all times.
When does the current lease end?
The current lease expires in 2020.
Is there an option of renewal & what period?
Option to renew the lease for another 3+ year period.
What is the annual escalation %?
What are the trading hours?
Monday to Saturday 08h00-18h00. Sundays & public holidays 08h00-16h00.
What is the square meters of the business?
Main business = 72 sqm and the near-by additional room (currently used for storage but can be applied for other purposes) = 24 sqm.
Is a copy of the lease available?
A copy of the lease will be made available to serious buyers.
Do you require a licence?
A full liquor license.
What lease deposit and/or other surety is required?
A deposit of 2-month's rental is required.
What are the main assets of the business?
Furniture, fittings, cutlery and kitchen equipment.
Are any items not included in the sale?
Some equipment belongs to the landlord.
What is their overall condition?
All assets required by the business to operate properly are in working condition.
Do any require repairing?
Routine maintenance applies.
How have they been valued ?
Which assets are on lease/HP and with whom?
The Point-of-Sale (POS) system is on a lease-to-own basis which means that early 2019 the hardware becomes a business asset and only the software is leased at a monthly fee in the region of R 400 (currently R 1 500+).
Will Seller settle or Buyer to take over?
The buyer is expected to take over the remainder of the lease unless otherwise agreed.
Are copies of agreements available?
Copies of the POS agreement is available.
Are they presently insured?
All the assets are insured.
Business is run on an unencumbered cash basis. Well located with customer parking. Well supported by local businesses and townsfolk. Great menu with provision for gluten-free and vegetarian clientele combined with competitive pricing. The off-site catering and equipment hire is very popular and the business is famous for their platters. The personal touch by the owners in being present every day has proven a plus point and thus excellent customer relationships have been established. This is also evidenced in the loyalty programme that has been established with regulars.
On cold and rainy days the deli runs out of covered seating.
Turnover can be increased by extending the business hours with focus on liquor sales including the revamp of the cocktail menu. There is a big demand for outside catering e.g. families staying over in town for short periods of time.
It is essential that a properly trained staff component is retained at all times as it can become a scarce commodity given the character and nature of the town. The pertaining national market trend in hospitality- and tourism industry is also evident and experienced here. With the drought in the Western Cape "broken", there is renewed hope of this tide turning. The national safety- and security situation and international perception affects the business' tourism custom.
What is the reason for the sale?
The owners want to relocate which is purely for personal reasons.
Why is this a good business?
This is a good business opportunity because it is profitable, operates smoothly, well-priced, is well known and supported by the local community all year round and tourists love it. A full liquor licence opens the business up to a wider customer base. Good (further) growth potential for energetic, enthusiastic owners.
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