Fully describe the business's activities?
Baking on premises of Artisan Breads, Cakes and wide range of Cakes and Confectionery. Serving of Breakfast, Lunch and Suppers. The business has 12 Suppliers most of whom offer 30 day term accounts.
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 Owner oversees all aspects of the business on a daily basis in conjunction with his wife. His wife handles the admin and stock ordering for the business. A support staff of 16 carry out the general duties such as cooking, serving, cashiers.
How are the clients attracted to the business?
Excellent position in the mall with strong branding/signage, and sea views. There is limited activity on social media. Website and Trip Advisor.
What competition exists?
There is no direct competition in the mall, but there are other major food outlets such as Spur in proximity.
What are the seasonal trends?
Summer has a very high positive impact on this business. It is necessary to ensure that the busy months are planned for and sales fully utilised. Cash should be retained for winter months three of which are very quiet normally.
Is the business VAT Registered?
What VAT documentation is on file?
Yes, as and when required.
Are there up-to-date Management Accounts available?
Yes, as and when required.
What percentage of the business is cash/credit?
55% credit card and 45% cash. Low commission charged by bank.
How could the profitability of the business be improved?
The present Owner is satisfied with the way that the business runs and the income generated. There are many additional things that can be offered such as catering for children's parties, increase range of confectionery, menu additions etc. The outside area is conducive to special occasion catering in summer.
What is the total staff complement?
18 without the Owners
Give a breakdown of staff/ functions/ length of service?
The staff are divided into kitchen and front service teams. The staff complement is increased by 12 casuals over the Xmas period and to the end of January, and also over the Easter holidays. More specific information will be given during the Due Diligence stage of the sale.
Do any receive special perks or incentives?
Some of the staff have worked with the Owner at his previous business...10+ years service. Any bonus's given are at the discretion of the Owners.
Are they on contract?
They have a yearly contract which is reviewed on an annual basis.
Do any have management potential?
There are staff who have shown ability to take on more responsibility.
How involved is the Owner in running the business?
On a daily basis.
When does the current lease end?
Is there an option of renewal & what period?
Yes, 5 years
What is the annual escalation %?
8% per annum. A turnover clause is in place.
What are the trading hours?
Monday to Friday from 07-30 to 6-00 pm Saturday from 7-30 to 3-00 pm Sunday 10-00 to 6-00 pm
What is the square meters of the business?
Approximately 200 sq meters...but exact area to be confirmed.
Who is the Owner/Landlord?
Is a copy of the lease available?
Do you require a licence?
An " On-site" liquor license is held by the business entity.
What lease deposit and/or other surety is required?
1 months rental based on the rental of the final year of the lease.
What are the main assets of the business?
Kitchen, catering and dining equipment and fixtures.
Are any items not included in the sale?
No, all assets are included.
What is their overall condition?
Do any require repairing?
How have they been valued ?
Owners second hand value.
Are they presently insured?
Well situated in a coastal ton that booms over Christmas, Easter and other holiday periods, most especially through summer Location within the mall, secure parking. Sea views from outside dining area. Staff are very well trained and long serving.
Long hours...Owners must be prepared to be prepared especially over the holiday periods. Suits a family arrangement for this reason.
Increase range of product on menu. Outside seating conducive to special occasion dining. Additional confectionery products.
There are no threats known of for this business.
What is the reason for the sale?
The Owner has been in this industry for over 20 years and is now at retirement age. He wants to spend time with family and enjoy a more quiet way of life after all the years spent in the restaurant environment.
Why is this a good business?
The location, with its sea view outside dining area, and the secure parking ensure the success of this restaurant. Added to this, the ambience and food offering with a wide range of confectionery are well known in the area. The visitors to this small coastal town over the holiday periods ensure an ongoing demand from early till late.
What is the price plus stock and the net profit?
The price of the business is R2.8M Stock is in the region of R60,000. Average monthly profit in the region of R60,000+ per month before Owners Drawings
Annual Turnover Amount between R 500 thousand and R 6 million