Fully describe the business's activities?
Very well established Milky lane. Operational for many years, recently relocated in food court of large regional mall. Enjoys both covered and indoor seating. Large food courts draws clients. Operates 7 days per week. brand speaks for itself. Please note the figures are based on RECAST financials with a reduced Rental on a three year lease.
How long has the business been established?
20 Years at the current location
How long has the owner had the business?
For the last 11 years
How does the business operate on a daily basis?
Business is currently manager run and the current cost will be lower if the owner runs the business themselves. Opens at 10 during the week and 9 on weekends. Clients are typically drawn from the mall.
How are the clients attracted to the business?
No marketing is done so word of mouth and the location in the mall
What Advertising/Marketing is carried out?
None other than head office
What competition exists?
There are no real direct competitors although some other brands offer some of the same products not all, the only other sole ice cream offering is âPauls Home Made Ice Creamâ but they offer only hard ice cream and target a higher LSM compared to Milkylane. The brand only sells soft-serve ice cream.
What are the seasonal trends?
Hotter climate brings with it better revenues, school holidays and public holidays also represent higher turnovers
How did the Covid-19 pandemic impact the business turnover / daily operations?
Business is currently not trading due to Covid-19 regulations
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
Yes, these are recast management accounts with a reduced rental on a three-year lease Detailed Recast management figures with monthly breakdowns are available to qualifying prospective buyers
How could the profitability of the business be improved?
Salaries can be optimised with the removal of management More marketing required
What is the total staff complement?
1 manager, 6 staff
How involved is the Owner in running the business?
Not involved daily.
When does the current lease end?
Currently on a new 5 year lease from Dec 2019 at a reduced rate of R560mÂ² HOWEVER the sellers are in negotiation with the landlord for a new 3 year lease at R350mÂ², the recast numbers for the business are also based on a Rental of R350mÂ²
Is there an option of renewal & what period?
What is the annual escalation %?
What are the trading hours?
Mon-Thurs 10-9 Fri- Sun 9-10. Sunday hours could be reduced.
What is the square meters of the business?
Inside 96mÂ² Outside 25mÂ²
What lease deposit and/or other surety is required?
Subject to landlord
What are the main assets of the business?
Operational assets, tables chairs, kitchen equipment
What is their overall condition?
Very good, business re-vamped with relocation to current site in 2016
Do any require repairing?
No, face-lift revamp of around R70k possibly needed in 2021
Well know brand, product offering, no competition, trained staff, have value price point, products attractive to wide LSM
Owners not involved
Cake sales, marketing to many schools in the area New NIce Cream sticks campaign that the brand that put a huge effort into, its a whole ecosystem of delivering an innovative product to wider areas of the market, prospectus available
What is the reason for the sale?
Sellers have corporate jobs
Why is this a good business?
Well established, unique, trained staff , great location
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Annual Turnover Amount between R 500 thousand and R 6 million