Fully describe the business's activities?
A family run catering business situated in Randburg supplying blue chip companies, the likes of Liberty Life, Nedbank, National Health Laboratory and more. The owners are aging and want to retire, their daughter will continue working in the business.
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 owners open in the mornings to start preparation for the day. They receive daily orders from their clients, these are then prepared and delivered. They do corporate functions, private functions, weddings and more. They are known for their Peruvian styled cuisine and extremely tasteful food.
How are the clients attracted to the business?
They have a well established client base. New clients are attracted through word of mouth and referrals. They have a website and a Facebook page.
What Advertising/Marketing is carried out?
An existing website and social media advertising.
What competition exists?
There are 2 to3 direct competitors but their established client base is testament to the quality catering service they provide.
What are the seasonal trends?
There busy periods are from April to December.
Is the business VAT Registered?
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
Up to date financials are available.
What percentage of the business is cash/credit?
Most payments are by EFT.
How could the profitability of the business be improved?
An active marketing campaign. Targeting more corporate clients will increase already good profits.
Is Seller finance available and for what amount?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
Staff contracts are available for viewing.
Are they on contract?
Do any have management potential?
Yes, there is currently a head chef who is able to fulfil a management position. The daughter will however stay on in the business.
How involved is the Owner in running the business?
When does the current lease end?
Is there an option of renewal & what period?
Yes, 3 - 5 years.
What is the annual escalation %?
What are the trading hours?
45 hours a week
What is the square meters of the business?
Who is the Owner/Landlord?
Is a copy of the lease available?
Do you require a licence?
All necessary licenses are available.
What lease deposit and/or other surety is required?
What are the main assets of the business?
Catering equipment, delivery vehicles and cold storage.
What is their overall condition?
good working order.
How have they been valued ?
Current market value less depreciation.
Which assets are on lease/HP and with whom?
Are copies of agreements available?
Are they presently insured?
They have an established client base. With 25 years experience, the staff are well drilled and geared to provide exceptional service and quality. Blue chip clients.
No perceived weakness.
They have been approached to run several corporate canteens which they have turned down, this could be another income source for the new owner. Actively approach new clients and not just rely on word of mouth.
Petrol price and inflation has a direct impact on food prices.
What is the reason for the sale?
Owners are retiring.
Why is this a good business?
They have big corporate clients who order from them on a weekly basis. They have well equipped premises which enables them to run a profitable business. They are geared to see exponential growth. The selling price includes over a million rand in assets and stock making this a very attractive business to buy or invest in. The owners daughter is staying on in the business and will continue to manage the day to day activities.
What is the price plus stock and the profit?
R1 750 000 netting R130 000 on average a month.
Annual Turnover Amount between R 500 thousand and R 6 million