Fully describe the business's activities?
This newly revamped restaurant is part of a well known franchise group which was established almost 20 years ago. Although famous for its pizza and pasta, the restaurant also offers a wide variety of grills. The store is extremely well located in a central business hub, with easy access from the busy main road.
How long has the business been established?
This store was established 4 years ago.
How does the business operate on a daily basis?
The business is currently manager operated and is open from 8am to 10pm daily. Approximately 40% of the revenue is generated by "sit-down" patrons with the balance made up of take-aways and deliveries.
How are the clients attracted to the business?
This is a well known brand renowned for offering a wide variety of authentic and affordable dishes that appeal to a diverse clientele. Well appointed, visible signage.
What Advertising/Marketing is carried out?
Apart from their professional website, the franchisor carries out radio and social media marketing campaigns. Menu drops and bulk sms's promoting special offers are sent out regularly to their sizable and loyal client base.
What competition exists?
Normal competition within the industry.
What are the seasonal trends?
Deliveries tend to increase during the winter months.
Is the business VAT Registered?
The business is a registered VAT vendor and documentation is on file.
Are there up-to-date Management Accounts available?
Auditors management accounts for the 12 months ended 31 May 2019 are on file with Aldes.
What percentage of the business is cash/credit?
100% cash or card. Cash flow is therefore extremely good.
How could the profitability of the business be improved?
Given that the business is run exclusively by the manager, owner operator involvement could improve profitability exponentially.
What is the total staff complement?
The business employs 17 staff members.
Are they on contract?
All staff members have valid contracts in place.
How involved is the Owner in running the business?
The owner is not involved in the day to day operations of the business at all.
When does the current lease end?
The current lease expires in May 2023.
Is there an option of renewal & what period?
Yes, the lease agreement provides for a further 5 year option of renewal.
What is the annual escalation %?
What are the trading hours?
8am to 10pm from Monday to Sunday.
Is a copy of the lease available?
Yes, a copy of the lease agreement is on file.
Do you require a licence?
Liquor license is in place and is transferable.
What are the main assets of the business?
Unencumbered assets to the value of R1 200 000 include restaurant furniture, kitchen equipment, fridges etc. A comprehensive inventory of the assets will be provided by the seller.
What is their overall condition?
Excellent, the assets have been well maintained, some are brand new.
How have they been valued ?
Valued by the owner at current value.
Are they presently insured?
Yes, comprehensive insurance is in place.
Well-known, established franchise with excellent systems in place. Newly revamped. Experienced, capable staff. Full training and support by the franchisor. Good food at affordable prices.
The owner is not involved in the day to day operations of the business.
With a committed hands on owner who is passionate about the restaurant industry, this business could go from strength to strength.
What is the reason for the sale?
The seller resides in Johannesburg and is not able to provide the attention the business needs.
Why is this a good business?
The business is part of a successful franchise group which has shown consistent growth year on year.
What is the price plus stock and the net profit?
The asking price of R1 200 000 excludes stock estimated at around R100 000. The franchise joining fee which has been discounted to R100 000 plus VAT, is excluded from the selling price.
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