Fully describe the business's activities?
Coffee being served that is a home brand Bake on order during the day Quiches and Cakes Supply homemade frozen ready meals as needed. Servings clients over the counter and sit downs.
How long has the business been established?
How long has the owner had the business?
Give a breakdown between sit-down, takeaways and deliveries
Sit-down 40% Takeaways 60 %
How does the business operate on a daily basis?
Being run as a running concern The owner opens and lock the shop daily The Owner attending to the management daily mainly in the mornings while having CCTV cameras to monitor the shop on the cell phone if not in the shop.
How are the clients attracted to the business?
The position is perfect. Right at the entrance of Pick n Pay. Mostly female and older clients. The students of the college are good clients.
What Advertising/Marketing is carried out?
Facebook Instagram Word of mouth Brochures of products
Does the business have any contract work?
What competition exists?
Restaurant in the same mall
What are the seasonal trends?
Product range changes from season to season with the result that a stable turn over is reached.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
Yes. POS Systemis in place that monitor sales on a daily basis . The sales shown are an average amount for the year as shown on the Income stemant.
What Balance Sheet and Income Statements are available?
Up to date Financial statements available to approved buyers.
What percentage of the business is cash/credit?
45% Cash 55% Credit cards
What is the age analysis of the debtors book?
None. Its a cash business.
How could the profitability of the business be improved?
Serving of Light Breakfast and Lunch menu can improve sales and nett profit .
Is Seller finance available and for what amount?
What is the total staff complement?
Three very experienced ladies
Give a breakdown of staff/ functions/ length of service?
Do any receive special perks or incentives?
Only on the selling of Frozen foods when targets are met
Are they on contract?
Do any have management potential?
Yes, one lady has the potensial
How involved is the Owner in running the business?
Owner comes in daily from 7h15-12h45 mainly for personal contact with clients
When does the current lease end?
The lease ends March 2021
Is there an option of renewal & what period?
What is the annual escalation %?
What are the trading hours?
The contract with the Mall stipulates the trading hours as 07:00-18:00 on Mondays to Fridays; 08:00 to 16:00 on Saturdays: and 08:30 to 14:00 on Sundays.
Is a copy of the lease available?
Do you require a licence?
Trading license at Health and Safety
What lease deposit and/or other surety is required?
Three months deposit
What are the main assets of the business?
Full range equipment for the coffee shop on hand that is needed to manage well laid out shop The coffee machine is a state of the art that is automated with a coffee grinder . There is a back up coffee machine on stand by.
Are any items not included in the sale?
What is their overall condition?
Good to excellent condition.
Do any require repairing?
Only ongoing repairs and maintenance
How have they been valued ?
By the owner on a cost and secondhand value
Which assets are on lease/HP and with whom?
Are they presently insured?
Quality products served Strategic position right at the entrance of Pick n Pay Top Quality Home Brand coffee
If the light meals for Breakfast and Lunch can be served if will increase sales with minimum capital layout. Serving food items related to the coffee shop can be expanded. Takeaway of coffee and food items on order can expand to counter the corona virus affect.
Corona virus and state of emergency currently that limits feet in the Mall Stating that the takeaway of coffee and items on order can counter this effect
What is the reason for the sale?
The owner is relocating to the Cape.
Why is this a good business?
The personnel works with passion and serving quality products. It is a neat and attractive coffee shop with lots of business potential.
What is the price plus stock and the profit?
Price plus stock R 620 000 The Net profit amounts to R 249 288
Annual Turnover Amount between R 500 thousand and R 6 million