Fully describe the business's activities?
Franchised seafood restaurant offering comprehensive range of sushi, seafood soups and fresh dishes such as platters, salads, shrimps, prawns, line fish, mussels etc as well as a comprehensive and popular desert menu. Fully licensed offering good quality wine at very attractive prices whilst catering for all tastes from quaffing to select pallet, and ever popular cocktails and desert drinks.
How long has the business been established?
How long has the owner had the business?
Give a breakdown between sit-down, takeaways and deliveries
100% sit-down meals
How does the business operate on a daily basis?
The business has both a Back of House Manager and a Front of House Manager who have been well trained and oversee their respective areas of responsibility. The staff are split into two shifts due to the trading hours. The Owners oversee the operation on a rotational basis.
How are the clients attracted to the business?
The franchisor has ongoing above the line marketing and advertising and maintain a top of mind awareness in the market. The group have wide distribution nationally and is a destination restaurant with extremely strong following across all income groups. Local social media and strong branding as well as other local below the line initiatives.
What Advertising/Marketing is carried out?
Strong above the line marketing campaigns by the Franchisor with TV advertising.
What competition exists?
There are other competitors nationally but within this town there are a few independents each with their own product offering, but not on the scale of this business. The nearest franchise operation of the same brand is over 20km away.
What are the seasonal trends?
This town is very busy during the summer and holiday periods and fortunately there is a large base of LSM 10+ resident retirees who help support the business throughout the winter.
Is the business VAT Registered?
Yes, currently waiting for registration to be completed.
Are there up-to-date Management Accounts available?
The P.O.S. system is very accurate and efficient as per the Franchisors requirements.
What percentage of the business is cash/credit?
90 % Card 10% Cash Commission on credit cards is much lower than market average due to strength of the franchise.
How could the profitability of the business be improved?
There is no doubt that this restaurant will become extremely busy and profitable over the holiday season as turnover exceeded R1 Million last December just 1 month after opening. Profitability is assured with an on-hand Owner/Operator, and payback period should be within a 3 to 4 year period if not sooner.
What is the total staff complement?
26 permanent staff.
Give a breakdown of staff/ functions/ length of service?
FoH Manger BoH Manager Double Shift required for some positions due to trading hours of the business.
Do any receive special perks or incentives?
BoH staff get a free meal daily. FoH get to keep the tips earned.
Do any have management potential?
The staff all have less than one year of service and have all been trained to the standards and requirements of the Franchisor. The Owners are pleased with the ability and commitment of the staff but it is too soon to establish management potential.
How involved is the Owner in running the business?
Both partners currently manage the business on a cyclical basis which is not an ideal scenario.
When does the current lease end?
A 10 year lease is in place and the rental is below the market average.
What is the annual escalation %?
7% Year on Year.
What are the trading hours?
10-00am to 10-00 pm
What is the square meters of the business?
320 square meters with seating for 150 diners.
Who is the Owner/Landlord?
Quasi government ownership of building with a strong anchor tenant.
Is a copy of the lease available?
Yes. Broker has a copy on file.
Do you require a licence?
A liquor license is in place.
What are the main assets of the business?
Fixtures and fittings of a top class franchise outlet with seating for approximately 150 diners. Probably one of the greatest assets of this business is the location, with sea views and an outdoor deck combined with cozy and discreet inside tables too.
Are any items not included in the sale?
There are no major items excluded ...just one laptop may be excluded.
What is their overall condition?
All only a few months old and in very good condition, as well as being state of the art with this Franchisors new Look and Feel.
How have they been valued ?
The assets were only purchased recently.
Will Seller settle or Buyer to take over?
Buyer will need to take over any outstanding contracts.
Are they presently insured?
First footprint of this major franchise brand in this affluent holiday and residential town. The Franchisor is very proactive with marketing drives, especially above the line TV with strong marketing initiative that bring diners into the restaurant. Brands flagship store with new First footprint of this major franchise brand in this affluent holiday and residential town. The Franchisor are very proactive with marketing drives, especially above the line TV , with strong marketing initiative that bring diners into the restaurant. Brands flagship store with new Look and Feel. The premises lend themselves to an exceptional dining experience either outdoor on an summer evenings or cozy indoors on a cold and wet winter day. Location excellent with an attractive rental and long lease and favourable market related annual escalation.
A new business so still growing in turnover albeit quicker than expected.
The business offers individual growth opportunities within the Franchise and a new Owner will be able to focus on product promotional activities with "out of season" affordable and attractive offerings for local residents and strong summer sales of premium priced dishes and strong liquor demand with very attractive margins.
There are no threats in place if the new Owner plays an active role in the store daily operations.
What is the reason for the sale?
The two partners own another long established franchise within the same group. They feel that it will be more appropriate to relinquish this business to maintain focus on their prime business which is very lucrative.
Why is this a good business?
Location within the town is really exceptionally good, with open dining areas in the sun or under the stars and with sea views, coupled plus a very inviting menu and affordable liquor. The look and feel of this outlet with a spacious sundeck ensures the ability to make up large table groups for celebrations and functions, especially in the holiday season with the strong tourism, most of whom are top earners. Ability to seat 150 diners within big groups semi-isolated, or with cozy corners for intimate dining. An extremely attractive rental offering supported with another strong anchor tenant and safe undercover off street parking. The menu offers from basic meals at very affordable prices to high end wining and dining. Comprehensive liquor offering across the price spectrum from house wine to imported wines and champagne.
What is the price plus stock and the profit?
The price is R5.3 Million which is in line with the startup costs. The stock fluctuates but is in the region of R200,000 currently.
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