Fully describe the business's activities?
This business is a multi faceted entity. Trail and road running groups leave here on a daily basis as well as cycling groups at weekends and they have recently launched running holidays, day trips and guided tours. They have a fully licensed restaurant selling a wide range of craft beers, wines and spirits as well as having an award winning coffee bar. They also have an online store which sells a wide range of running gear and lastly a retail shop selling runnings shoes, apparel, packs, bags, socks, hats, accessories and clothing.
How long has the business been established?
Since March 2018
How long has the owner had the business?
The owner created the business from concept.
How does the business operate on a daily basis?
They have a great team who open 7 days a week to provide all services.
How are the clients attracted to the business?
The business has built a large community of runners and locals though running constant events and through marketing. On Sat 16/11 for example they had a run which attracted 300 runners to the shop. Large companies such as Salomon often run events from the shop such as âInternational ladies dayâ. They have large social media following and post daily as well as watsap groups for the various activities they run.
What Advertising/Marketing is carried out?
Social media on a daily basis. Newspaper articles, word of mouth and free runs on a daily basis which have a large following.
Does the business have any contract work?
What competition exists?
There are a couple of cafes / restaurants nearby that offer similar food offerings, although they are known for policing a healthier fresher offering. No running / retail competition exists nearby.
What are the seasonal trends?
Trail running season is in winter which is when all the races are held and this helps with the traditional winter slow down. They go to many of these events and run the beer stand, they do a retail offering at registration and the business has also been used as a registration spot. The restaurant relies a lot more on local trade as the area has a very strong âseasonâ from Dec - May and is quieter from June - October.
Is the business VAT Registered?
What VAT documentation is on file?
All documentation up to date.
Are there up-to-date Management Accounts available?
Yes, they use a team of accountants and ensure books are up to date on a monthly basis.
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
Approx 80% Credit / 20% Cash .
What is the age analysis of the debtors book?
This is available. They have always strived to keep suppliers up to date with payments and the only aged payments are those they query.
How could the profitability of the business be improved?
The business is still relatively new , which has gained a following and good reputation in this time. A dedicated retail person to drive sales in that area is definately required as currently the owner plays this role and does not have sufficient time. The Friday and Saturday evening trade can be grown and a better marketing plan for online which is still quite untapped. The business has an incredibly strong brand even down to the Logo and they strongly believe that it would be perfect for a future franchise opportunity.
Is Seller finance available and for what amount?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
3 x Baristaâs - 2 have 5+ years experience and professionally trained and have been with them for over 1 year. 3 x waiter staff - all have 5+ years experience. 3 x kitchen staff including a head chef with 10+ years experience. 2 x cleaners who are also able to jump in as waiters / kitchen helpers. 1 x operations manager who manages the day to day operations of the business.
Do any receive special perks or incentives?
Are they on contract?
9 are permanaent and 3 are on rolling 3 month contracts.
Do any have management potential?
2 have management potential. James Chikoko is their supervisor and well respected and educated. Nathan Davids is a very experienced waiter, quick thinking and able to deal with pressure very well.
How involved is the Owner in running the business?
The owner is present each day and involved in all aspects of this owner led business. He also leads all of the runs.
When does the current lease end?
They are two years into a five year lease.
Is there an option of renewal & what period?
The premise owner is a well respected local businessman, very fair and easy to deal with who is very happy to extend, renegotiate or even sell the premise.
What is the annual escalation %?
9% which they are currently re-negotiating .
What are the trading hours?
Mondays, Wednedays, Thursday & Sundays from 06:30 - 17:00 Tuesdays, Fridays & Saturdas from 06:30 - 20:30. (On Tuesdays they are the clubhouse for Hout Bay Harriers local running club.
What is the square meters of the business?
Internally 178sqm. Externally they have sole use of a large 80sqm deck and they built some beautiful astro turf terraces and a kids play area of another 120sqm.
Is a copy of the lease available?
Do you require a licence?
A Licquor licence is required.
What lease deposit and/or other surety is required?
2 x Months rental.
What are the main assets of the business?
A full list of assets is available.
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
How have they been valued ?
Fair market value
Which assets are on lease/HP and with whom?
Are they presently insured?
Strong brand Strong following Young business with huge potential for franchise and growth / expansion Unique concept in SA ideally situated
Currently very owner led so a strong passionate manager / owner would be required.
Huge potential for growth, expansion and franchise.
Current SA economic slow down
What is the reason for the sale?
1. Owner is on a business VISA from Australia which expired in 2020 2. Owners wife has to return to Australia to due ill family member. 3. Owner has a business opportunity in Australia. Its worth pointing out, that when the owners moved here, the intention was always to stay for 3 years, open and grow the business and then either keep it open here or sell.
Why is this a good business?
Its a great business for a number of reasons. 1. a unique concept and brand 2. a strong following and reputation already with locals 3. growth potential 4. we have built a very very strong team They have always focused on excellence. For example their coffee is the best in the area, served by trained baristaâs on a coffee machine that is world leading. Their retail offering is top class and the shop, which is combined with the coffee shop and bar, has a wonderful atmosphere. Their menu and food is also the best, the menu being created by a leading food consultancy. The fit out and design is the best in the area.
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