Fully describe the business's activities?
This Steers & Debonairs Combo Store in newly revamped shopping mall is currently under the ownership of a career restaurateur who has optimized the operations of these two stores from the sharing of resources, streamlining deliveries, updating security and implementing a management reporting structure.
How long has the owner had the business?
The Steers for 1 year, the Debonairs for 5 years.
How does the business operate on a daily basis?
Stores are manager run with a team of four senior staff members overseeing both operations.
What Advertising/Marketing is carried out?
- Flier Drops; - Activation points; - Database marketing via either SMS or push notifications on the Steers & Debonairs app.
What competition exists?
Regular competition within the fast food space.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
How could the profitability of the business be improved?
The basics of food and beverage operation, the more time an owner has to interrogate the purchases, wastage, other costs, the more the owner will be able to extract out of the business.
What are the franchise joining costs?
Steers - R159,900.00 (Ex VAT) Debonairs - R100,500.00 (Ex VAT)
What are the monthly royalty and advertising contribution payable?
Steers - Royalty 6% & Advertising 5% Debonairs - Royalty 7% & Advertising 5%
When are the revamps due on the stores?
Steers - Currently due Debonairs - Mid 2019
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
Steers: Manager x 2 Front of House x 3 Back of House x 9 Debonairs: Manager x 2 Front of House x 2 Back of House x 5
Do any receive special perks or incentives?
Managers are incentivised on sales targets and maintaining food costs within the target range.
Are they on contract?
All staff are permanent with the exception of the drivers who are contracted and paid per delivery. Motorbikes are either hired or owned by the drivers.
How involved is the Owner in running the business?
The owner is involved in an oversight capacity.
When does the current lease end?
Steers - 1 July 2022 Debonairs - 1 May 2023
Is there an option of renewal & what period?
Yes, for 3 years.
What is the annual escalation %?
What are the trading hours?
Monday to Sunday - 09:00 to 21:00
What is the square meters of the business?
Steers - 130sqm Debonairs - 117.4sqm
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
Steers - R77,574.86 Debonairs - R35,200.00 With personal Surety
What are the main assets of the business?
The operating equipment.
Which assets are on lease/HP and with whom?
No assets are on HP
Are they presently insured?
- Very strong brands, in a resilient sector of the food market; - Strong systems in place to ensure the business stays profitable; - Tenants in the shopping centre include a Super Spar, Westpack, and bank branches for Absa, FNB, Nedbank, Standard and Capitec.
Seating is limited.
An owner that has the capacity to focus more attentively on purchases and administrative functions can immediately start improving the bottom line.
None, other than the current pressure on consumer spending.
What is the reason for the sale?
The current owner operates multiple restaurants. He is offloading a few stores to free up time to consolidate his efforts.
Why is this a good business?
This store has benefited from both an experienced operator and the brand support. This business is set up beautifully to deliver a consistent return on investment.
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Annual Turnover Amount between R 500 thousand and R 6 million