Fully describe the business's activities?
Pizza and general Take Away's. Daily home cooked meals. Traditional Sunday lunches. Baked goods such as biscuits, cakes and tarts.
How long has the business been established?
Almost two years.
How long has the owner had the business?
How does the business operate on a daily basis?
The Owner opens the business daily. At that time stocks are checked and orders placed as required. The preparation starts a little later when opening and kitchen is ready to receive orders. Most of the trade during the day is general take away's and the meal of the day. he evening trade is mostly pizza, pasta and also the meals of the day are popular.
How are the clients attracted to the business?
Predominately word of mouth, and a little local advertising. A Facebook page is in place too.
What Advertising/Marketing is carried out?
Does the business have any contract work?
Not set contract work, but a number of clients have orders continually in place for the daily meal each day of the week.
What competition exists?
There are other food vendors in the village but none of them offer the same home cooked and hearty meals and pizza and pasta.
What are the seasonal trends?
As with all coastal businesses the holiday periods such as Easter and Christmas as well as school holidays bring in an influx of visitors who spend freely and sales are high. The cooler winter months means that the local market must be well looked after, which is an advantage with the type of meal offered and the daily meals and Sunday lunches.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
Yes, as and when required.
What percentage of the business is cash/credit?
To date this has been a 100% cash business, but a credit card machine has been recently installed.
What is the age analysis of the debtors book?
A few customers are given terms to pay for their daily meals, but this is not significant.
How could the profitability of the business be improved?
There is scope for increased marketing as not much has been done. However, if the standards are maintained then the business will show incremental growth as the town grows. There is an opportunity to introduce new lines such as quiches, soups etc and also desserts.
What is the total staff complement?
3 excluding the Owner.
Give a breakdown of staff/ functions/ length of service?
2 x kitchen staff cooking and cleaning etc. 1 x front of house supervisor who also handles the cash.
Do any receive special perks or incentives?
The staff receive an annual bonus at the discretion of the Owner.
Do any have management potential?
Yes, the one staff member is able to fully operate and manage the business in the absence of the Owner.
How involved is the Owner in running the business?
On a daily basis or as and when required.
When does the current lease end?
Is there an option of renewal & what period?
Yes, subject to negotiation, and landlord has been generous by implementing a rental increase of 8% only every two years for the current Owner.
What is the annual escalation %?
8% every second year.
What are the trading hours?
Monday to Thursdays: 10-00am to 8-00pm Friday and Saturdays: 10-00am to 9-00pm Sundays: 08-00 to 1-00pm for Sunday lunches only
What is the square meters of the business?
+- 65 square meters
Is a copy of the lease available?
Do you require a licence?
General food acceptability for premises and business license.
What lease deposit and/or other surety is required?
1 months rental.
What are the main assets of the business?
Mainly kitchen equipment.
Are any items not included in the sale?
There are a few personal items which shall be indicated and removed as necessary.
What is their overall condition?
All assets are in good working order.
Do any require repairing?
How have they been valued ?
Owners second hand value.
Are they presently insured?
The business offers regular specials which is a strong draw-card. The extended trading hours are an important strength. There is a strong repeat customer base who prefer this type of meal to fast foods. The town is ideal for somebody who wants a coastal quality lifestyle with a business that keep them involved and offers reward but not with a full time commitment.
There are no obvious weaknesses as long as the management keep controls in place.
The town is showing strong development and the sale of stands for building are very high, so long term growth is a definite. The local authorities have plans to build a major road along the east side of this complex, and this is also going to impact positively on the business. The business is not geared as a sit down restaurant, but this is a distinct possibility if the Owner wished to do so. In this case an opportunity would also be to apply for an on-site liquor license.
There will always be new players in the market as the town develops, but the business shows year on year growth and this will remain as long as service and quality are not compromised.
What is the reason for the sale?
The Seller is very reluctant to sell, but needs to move to a large city as he wants to further his legal studies and needs to join a legal firm to do so.
Why is this a good business?
This is a good business as it is established in an area that is showing very strong growth with people relocating from inland to the coast. A record number of stands were sold once again over last December. The business premises are well situated and a main road is being planned along the eastern side of the center. This type of fare is not widely offered and is a preferred choice by many as the alternates are predominately fast foods.
What is the price plus stock and the net profit?
The business is selling for R350,000 and stock fluctuates between R20K and R30K per month on average. The average monthly profit is in the region of R17,000 per month. Please note that since signed financials are not available, the Buyer needs to prove the quoted financials.
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