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?
14 Years...but revamped after a fire in 2015
How long has the owner had the business?
Give a breakdown between sit-down, takeaways and deliveries
Predominately sit down meals with limited take-aways
How does the business operate on a daily basis?
The business operates with a structured team comprising front of house and back of house with a manager overseeing the business.
How are the clients attracted to the business?
Well established national franchise which is a destination restaurant. Local marketing initiatives with advertorials in local mags and coupons offered to the two local bowling clubs. Also initiatives with local golf and cricket teams.
What Advertising/Marketing is carried out?
The Franchisor does a lot of above the line marketing in press and TV etc. Local initiatives at operational level.
What competition exists?
There are other restaurants in town, but this is a well known and well supported national franchise brand.
What are the seasonal trends?
A strong seasonal high over the Christmas and Easter periods and other holiday periods as with most coastal towns, with an increase generally through the warmer summer months.
Is the business VAT Registered?
What VAT documentation is on file?
Up to date as and when required
Are there up-to-date Management Accounts available?
What percentage of the business is cash/credit?
70% Credit Card/ 30% Cash
What is the joining fee and any other costs by Franchisor
The joining fee is R170,000 An amount of R100,000 must be lodged as stock surety with Head Office
What is the total staff complement?
30 Staff members apart from the Owners
Give a breakdown of staff/ functions/ length of service?
A structure is in place and will be made available at Due Diligence process
Do any receive special perks or incentives?
Staff get meals and keep tips. Manager gets perks.
How involved is the Owner in running the business?
There are two partners who oversee this and their other branch too.
When does the current lease end?
Lease currently in place ends in November 2020 and renewable from July 2020 for a further 5 year period.
Is there an option of renewal & what period?
What is the annual escalation %?
Subject to negotiation.
What are the trading hours?
10-30am to 9-00pm Closing time will be extended to 11-30 when required.
What is the square meters of the business?
320 square meters, with river frontage, an seating for 190 persons. There are also outside benches under the trees.
Is a copy of the lease available?
Yes, as and when required.
Do you require a licence?
All required licenses are in place.
What are the main assets of the business?
Kitchen Equipment, Tables and Chairs, Fixtures and Fittings.
Are any items not included in the sale?
Any personal items will be pointed out to a prospective Buyer at time of initial visit.
What is their overall condition?
Very good as all were replaced in July 2015 after the fire.
Do any require repairing?
How have they been valued ?
Owners second hand value of R2,5 million.
Which assets are on lease/HP and with whom?
All paid in full.
Are they presently insured?
National brand with a very loyal following and a very strong above the line marketing budget. Known as a destination restaurant for quality and value for money.
The business requires a hands on operator to realise the full potential. Staff component is significant and requires a large amount of control and focus.
The Franchisor is very innovative with their marketing initiatives and in-store promotional activities. Ongoing opportunities within ones own environment for local marketing initiatives.
There are no known threats to this business, but the Owner should remain involved with the operational aspect of the business at all times to ensure ongoing success.
What is the reason for the sale?
The two partners now have 2 franchises within the brand and feel that they should relinquish one of them.
Why is this a good business?
Because it is such a strong national franchise and well supported by the brand loyal clients. Not many franchises spend as much above the line on marketing as this group does, and they ensure top quality merchandise and in-store standards.
What is the price plus stock and the profit?
The Selling price is R4.9 mill and the Owners draw in the regions of R1,4 per annum from the business ...Although this will need to be verified by them as updated financials have been requested but not yet received. The average stock holding is in the region of R120,000.
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