Fully describe the business's activities?
Italian style restaurant with 50/25/25 breakdown for sit-downs, takeaways, and deliveries. This is one of two franchises owned and seller will consider a package deal. View also mandate number 33099 and speak to your broker for more details hereon.
How long has the business been established?
The business has been established for 19 years.
How long has the owner had the business?
Current owners have operated the business for almost 3 years.
How does the business operate on a daily basis?
The business is mostly manager run. The staff has been with the business for many years and three of them have keys to open and close daily.
How are the clients attracted to the business?
Visible signage from the road. Word of mouth.
What Advertising/Marketing is carried out?
Franchisor markets specials via TV/Radio and printed media. The franchisee pays a 2% marketing fee monthly. Also 5% royalty fee. Occasional pamphlet drops done by sellers.
What competition exists?
Normal competition in the industry
What are the seasonal trends?
Winter times tend to be busier.
Is the business VAT Registered?
Yes the business is registered for VAT
What VAT documentation is on file?
All VAT documents on file with the accountant
Are there up-to-date Management Accounts available?
All sales and purchase information can be confirmed fro the POS system. Aldes has in house management accounts available
What Balance Sheet and Income Statements are available?
The accountant is in the process of drafting the annual financial statements.
What percentage of the business is cash/credit?
80% Card 20% Cash
How could the profitability of the business be improved?
The business had a lot of success with buy one get one free voucher used in conjunction with another local business in the mall and this can be reinstated. Adding more signage. Better stock control. Paying better attention to food cost when purchasing Can open for breakfast Revamp/improve kids corner and also add a kids pizza station
Is Seller finance available and for what amount?
Sellers will consider offering terms to a qualified buyer with a 70-80% deposit payable.
What is the total staff complement?
1 x Manager that oversees this as well as other franchise (not essential if only 1 franchise is taken over) 1 x Kitchen Manager -18 years 1 x Front house Manager -7 years 1 x Headwaiter/Barman Manager -16 years 5 x Pizza 2 x Pasta 2 x Grill 2 x Sculler 1 x Bar 1 x Cashier
Do any receive special perks or incentives?
Fixed salaries with extra on public holidays
Are they on contract?
All permanent staff is on contract
How involved is the Owner in running the business?
The owner has not been actively involved in the business for the past year.
When does the current lease end?
Lease ends April 2020.
Is there an option of renewal & what period?
Option to renew for a further 3 years.
What is the annual escalation %?
What are the trading hours?
The business opens daily at 11:00 and closes 21:30 (Sundays at 21:00)
What is the square meters of the business?
Who is the Owner/Landlord?
Is a copy of the lease available?
Yes a copy is available from the owner
Do you require a licence?
Liquor license is in place and transferable
What lease deposit and/or other surety is required?
Lease deposit of R159 000 payable.
What are the main assets of the business?
Assets to the approximate value of R200 000 includes kitchen equipment, furniture, fridges, coffee machine, etc. A comprehensive asset list will be provided by the seller.
What is their overall condition?
Equipment is well maintained.
How have they been valued ?
Owner assisted with second-hand value.
Are they presently insured?
Comprehensive insurance is in place.
Well-known franchise with good systems in place. Longstanding/capable staff Good rental agreements. Good prices Family restaurant
Staff salaries are too high.
Can enlarge the premises to include a kids play area Can make use of own suppliers.
None were identified
What is the reason for the sale?
Owners wishes to focus on their other businesses
Why is this a good business?
Well known franchise with excellent systems in place and capable staff to manage it.
What is the price plus stock and the profit?
Selling Price of R650 000 includes R50 000 stock. Provision for approximately R50 000 joining fee to be added on.
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