Fully describe the business's activities?
The business is a popular Italian franchise restaurant in the East of Pretoria. 5% Royalty payable (Split in 3% Franchise Fee and 2% Marketing Fee) The restaurant is situated within a well established shopping centre close to a large residential area, schools and other major attractions which drives business to the store. The business is well known in the area and predominantly manager run.
How long has the business been established?
The business has been established since 1996.
How long has the owner had the business?
The owner took over the business in 2011.
How does the business operate on a daily basis?
The business is mainly manager-run with the owner only being involved in the overall management of the business and not in the daily operation of the business. The manager is responsible for all operational duties such as stock take and ordering The business main trade is for take aways and busiest during lunch and evenings.
How are the clients attracted to the business?
Most of their customers are regulars, that has been visiting the restaurant for years. The restaurant is well known in the area.
What Advertising/Marketing is carried out?
The Franchisor does most of the advertising and marketing for the Franchisee. They have regular specials and marketing campaigns which is run nationally. With regards to local marketing the owner has a small signboard close to a one of the local schools in the area.
What competition exists?
No direct competition in the centre or area exist.
What are the seasonal trends?
During December and some of the school holidays the business seem to be a bit more quiet. However, the business income is very stable.
Is the business VAT Registered?
What VAT documentation is on file?
All VAT documentation are on file with the accountant.
Are there up-to-date Management Accounts available?
All information regarding the monthly and daily sales and purchases can be confirmed from their POS-system.
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
80% - Card 20% - Cash
How could the profitability of the business be improved?
A new owner can focus on doing more local marketing, advertising and introducing a breakfast menu to clients.
Is Seller finance available and for what amount?
Seller will rather consider cash offers.
What is the total staff complement?
19 staff members.
Give a breakdown of staff/ functions/ length of service?
12 x Kitchen 1 x cashier 1 x Barman 1 x manager 4 x casuals staff members on commission
Do any receive special perks or incentives?
All staff receive a basic salary and they are on a commission structure. Waiters currently only receive commission. Usually were on a flat rate of R50 per day
Are they on contract?
Do any have management potential?
The owner has a manager in place and is very satisfied performance.
How involved is the Owner in running the business?
The owner is involved only a couple of hours per day.
When does the current lease end?
The current lease will only end in 2022. No rent was paid in April and only 50% in May and June due to Lockdown
Is there an option of renewal & what period?
There is an option to renew for another 5 years.
What is the annual escalation %?
Annual escalation of 7%.
What are the trading hours?
Monday -Saturday 10h00 to 21h00 Sunday 10h00 to 19h00
What is the square meters of the business?
470 sqm Opportunity to cut approximately 100 sq/m which will reduce rent with R30 000
Is a copy of the lease available?
Yes this can be provided.
Do you require a licence?
Liquor license in place
What are the main assets of the business?
The owner will provide a full asset list . This includes all kitchen equipment, fridges, coffee machines, tables and chairs, and delivery bike. All assets will be included in the sale.
What is their overall condition?
Everything is in a good and working condition, none need repairing.
How have they been valued ?
Second hand value
Are they presently insured?
The business has comprehensive insurance cover.
- Excellent take away base - Great Location in the east of Pretoria; - Manager run business; - Strong franchise brand with good support from franchisor
- The market is very reliant on the economy.
- More local/area marketing and in-house specials; - Extended hours, incorporate a breakfast menu; - Expand the deliveries. - Reduced rental once size is reduced - Advertising a Happy Hour
What is the reason for the sale?
Owner is emigrating.
Why is this a good business?
The business is a popular Italian restaurant franchise situated in a busy shopping center in the East of Pretoria. This specific store has been the top performing franchise in Pretoria and is mainly manager run. Great profits, good systems in place and growth potential
What is the price plus stock and the profit?
Selling price of R2 000 000 plust stock of R300 000 Excludes Franchise Joining Fee
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