Fully describe the business's activities?
The business is an award-winning restaurant in Johannesburg that changes its business offering depending on their client's preference. They have a full fine dining section with tasting menus. They also operate a bistro and casual restaurant for clients that would like to have good lunch or dinner without the huge price tag. They are only open for lunch and dinner trade and mainly work on bookings. The business has 2 main divisions: - A la carte - 6-course Tasting Menu (new aspect to the business which is very popular for exclusive events and dinner parties) The restaurant participates in the yearly Restaurant week and has been awarded some of the exclusive titles.
How long has the business been established?
The business opened their doors in 2013 by the current owner.
How does the business operate on a daily basis?
The owner has full-time employment and only involved in the overall financial management and decision making of the business. The business is mainly manager run with a full-time, trained and talented chef attending to the menu and preparation of all food. The business only focuses on lunch and dinner trade. The restaurant is also popular for corporate functions, birthdays and special events.
How are the clients attracted to the business?
The business is well known in the area an has a good reputation for high quality food. Their chef and kitchen staff is geared to host guests for a full fine dining experience. Therefore they also receive a lot of mouth-to-mouth referrals. The business is also on various online platforms with great reviews.
What Advertising/Marketing is carried out?
- Social Media Advertising (Facebook & Instagram) - Participation in Restaurant Week by invitation (award winning) - Google AdWords - Zomato, Dine-out, TripAdvisor etc.
What competition exists?
The business doesn't have any competition in the centre where they are situated. However, there is another fine dining restaurant in the area.
What are the seasonal trends?
The beginning of the year tends to be a bit more quiet. The restaurant is always busy for Mother day, valentines day and other special events such as engagements and anniversaries.
Is the business VAT Registered?
Yes the business is a VAT-vendor.
What VAT documentation is on file?
This will be available form the business accountant.
Are there up-to-date Management Accounts available?
The owner provided Aldes with up-to-date management accounts for the period January 2018 - December 2018
What percentage of the business is cash/credit?
95% Card 5% Cash
How could the profitability of the business be improved?
There is an opportunity to do market the business to host more corporate events. They have also been approached to do outside catering. Advertising and marketing the tasting menu for private parties can be increased.
Is Seller finance available and for what amount?
The seller will be open for negotiation.
What is the total staff complement?
13 Staff members. The business has a big saving (30%) on employee costs as they've restructured their key staff members.
Give a breakdown of staff/ functions/ length of service?
1 x Front of house/Administrator/events coordinator 1 x Barman 4 x Waiters 1 x Chef 5 x Kitchen staff 1 x Sculler
Do any receive special perks or incentives?
All staff receive a basic salary. The front of house staff has a different salary structure that will be explained in more detail.
Do any have management potential?
Yes there is one front of house employee that has managerial duties.
How involved is the Owner in running the business?
The owner is more involved in the overall management of the business but is not at the business on a daily basis. The staff handles all of the daily tasks, ordering, and bookings.
When does the current lease end?
Current lease ends July 2020.
Is there an option of renewal & what period?
There is an option to renew the lease for another 3 year.
What is the annual escalation %?
What are the trading hours?
Mon - Wed 6PM - 11PM Thurs - Sat 12PM - 11PM
Do you require a licence?
What are the main assets of the business?
- Kitchen Equipment - Office Furniture - Furniture and fixtures **Full asset list will be provided**
Are any items not included in the sale?
Everything will be included in the sale.
How have they been valued ?
Depreciated value has been used.
Which assets are on lease/HP and with whom?
Are they presently insured?
The business is comprehensively insured.
- Great Reputation and high quality fine dining food - Well known in the area - Award Winning restaurant - Well trained and loyal staff
- The business is currently manager run and would benefit from owner involvement
- Focus on more marketing and advertising - Promoting the business to host more events, private parties and corporate functions.
- Economy does play a roll
What is the reason for the sale?
The owner is full-time employed and not involved in the business operations.
Why is this a good business?
This is an Award-winning restaurant with good reputation. The business is mainly manager run with scope for growth. This is a good business for a chef or restaurateur wishing to own their own restaurant with good cash flow. Great location.
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Annual Turnover Amount between R 500 thousand and R 6 million