Famous Brands Combo store in Limpopo with liquor license
Reference: 24593
Business details
Price:
R4,100,000
Average profit:
R133,124
| Sector: | Food |
| Stock: | R100,000 |
| Price excl. stock: | R4,000,000 |
| Total assets: | R1,856,447 |
| Monthly turnover: | R519,066 |
Limpopo
Interested in buying this business?
Summary
Famous brands combo store is located in Limpopo close to the mining sector and many tourist attractions. Major investment in the infrastructure to cater for families and workers in the town. Decking, including play areas, TV's and a large projector to ensure good customer turnout. Low rental of R13792 poses little risk to going forward. Liquor license with sales of around R12000 monthly. Financials statements available for DDi once offer in Call Chris Fyfe 0825586577 for further informations.
1. History Background
Fully describe the business's activities?
Famous Brands Fast food combo store selling Pizza and various take away food. Fully licensed and able to sell alcohol
How long has the business been established?
2 years and 3 months
How long has the owner had the business?
Since opening
What steps are in place to solve 'load shedding' problems?
None, but rarely has load shedding and power faliures.
What is the average KW usage?
9000 kw
2. Present Market
How are the clients attracted to the business?
Only Pizza take away in the town. The business is licensed to sell alcohol. The owner has erected Swings, a deck and added in a jumping castle. Ideal for families and customers employed in the surrounding areas.
What Advertising/Marketing is carried out?
The owner has done very little advertising as not required
What competition exists?
No other Pizza take away in town. However Spur, wimpy and KFC are located in town
What are the seasonal trends?
The business is consistent througout the year
3. Financial
Is the business VAT Registered?
Yes
What VAT documentation is on file?
Vat records can be made available for due diligence purposes
Are there up-to-date Management Accounts available?
Management accounts can be made available for approved buyers
What Balance Sheet and Income Statements are available?
2011 financial statements are available and reflect a net profit before tax of R1 453 246
What percentage of the business is cash/credit?
All cash or card transactions, no accounts
How could the profitability of the business be improved?
More frequent stock counts and controls to ensure no theft or stock wastage. Up selling when taking orders
Is Seller finance available and for what amount?
No
What is the payback period?
What is the ROI?
4. Staffing
What is the total staff complement?
29 staff
Do any receive special perks or incentives?
Cashiers are on a benchmarking model for cheese sales and earn incentives when up selling
Are they on contract?
Yes
Do any have management potential?
4 staff have management potential. The owners are currently training a staff member to manage the business in the abcense of the owners
How involved is the Owner in running the business?
Currently fully involved
5. Premises
When does the current lease end?
2014
Is there an option of renewal & what period?
yes, further 5 years
What is the annual escalation %?
10%
What are the trading hours?
9am to 9pm 7 days a week
What is the square meterage of the business?
235 sqm
Is a copy of the lease available?
Yes for approved buyers during due diligence
Do you require a licence?
The owners have a liquor license. All alcohol sales are not included in the royalty reports
6. Assets
Is a full asset list on file?
Yes, is on file. The owners have spared no expenses in making the a large family styled take away / sit down and included items such as a projector for sporting occasions. A deck area with umbrella has been erected, with swings and a jumping castle for children
What is their overall condition?
Good condition, as store is just over 2 years old
Do any require repairing?
No
How have they been valued. ?
Owner value
Are they presently insured?
Yes
7. S.W.O.T. Analysis
Strengths?
Low rent of R13702! Voted best Steer franchise in the Limpopo and Pretoria North area. Additional spending on the outside eating area to cater for families, as well as sports occasions. This is the only pizza franchise in the town. The staff are well trained and work well together. There is no major competition in the area and this business is recognised as the place to eat take aways by residents and workers in the area
Weaknesses?
This business will require good controls and measure to ensure maximum profitability and very limit stock wastage
Opportunities?
To incorporate a milky lane on premises, as ideally located for family retreats and special occasions
Threats?
None, this is a growing town and has a prosperous future due to the mining sector
8. Reason For Sale
What is the reason for the sale?
Family owned business. The one owner has had health issues and placed additional pressure on the daily management. Owners have other business interests in the town and will be unable to cope with the future demand.
9. Conclusion
Why is this a good business?
This is the only Pizza franchise in the town. The town is located in a mining and tourism area which is growing by the day. This is a low risk franchise investment with good returns. The startup phase has past and business is delivering good profits with growth opportunities
