Sectors / Category

Annual turnover

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  • Mandate: 34033
  • Added: 21 May 2020
  • AFS
  • 209

Mobile Coffee Trailers

Gauteng, Johannesburg
209
Mandate 34033
Added 21 May 2020
R 1,950,000* ZAR
Stock: R 0
Assets: R 1,470,000
R 80,674 ZAR
Bronwen Barnard
Aldes Focus
Gauteng
Summary

A fleet of coffee/beverage trailers based in Johannesburg. Selling a wide range of coffees, smoothies, juices, and hot chocolate to customers. The business is owner-managed with dedicated baristas in each mobile coffee trailer. Their main focus has been selling beverages to a captive market. They are also available to cater for weekend and corporate events.

Mobile Coffee Trailers
SELLING PRICE AFS
R 1,950,000* ZAR
Stock: R0
Assets: R1,470,000
R 80,674 ZAR
Summary

A fleet of coffee/beverage trailers based in Johannesburg. Selling a wide range of coffees, smoothies, juices, and hot chocolate to customers. The business is owner-managed with dedicated baristas in each mobile coffee trailer. Their main focus has been selling beverages to a captive market. They are also available to cater for weekend and corporate events.

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Fully describe the business's activities?
A fleet of coffee/beverage trailers based at selected permanent sites in Johannesburg. Selling a wide range of coffees, smoothies, juices, and hot chocolate to a captive market. The business is owner-managed with dedicated baristas in each mobile coffee trailer. Their main focus has been selling beverages to a captive market. They are also available to cater for weekend or corporate events.

How long has the business been established?
The owner started the business in 2013 and has successfully grown the business to 8 fully-functional coffee trailers at various locations.

Give a breakdown between sit-down, takeaways and deliveries
This business is 100% takeaway coffees and beverages.

How does the business operate on a daily basis?
Each coffee trailer has its own dedicated barista, they open and close the trailer on a daily basis. The owner is involved in the overall management of the team and the business. She will make sure all orders are done and delivered on a weekly basis. She also visits the trailers once a week to check-in with her staff and collects all-cash sales.

How are the clients attracted to the business?
This business has a captive market with loyal, daily customers. Corporate events are mainly via word-of-mouth and they get hired to provide their coffees and beverages at their events

What Advertising/Marketing is carried out?
The owner has a website and Facebook page. Other than that it has never been necessary to do additional marketing and advertisement.

What competition exists?
Yes, there are coffee retailers and coffee shops in the areas. However, their market, products, and prices differ vastly from each other.

What are the seasonal trends?
There are some seasonal trends and depends on how many external events they received. (Refer to the Income Report to view these trends)

How did the Covid-19 pandemic impact the business turnover / daily operations?
Their current sites have been closed and operations will continue as normal once the necessary level restrictions have been lifted.

Is the business VAT Registered?
Yes

What VAT documentation is on file?
Their accountant is responsible for all VAT and tax-related issues such as PAYE/UIF/VAT and Income Tax.

Are there up-to-date Management Accounts available?
Aldes has the 2019 Annual Financial Statements available as well as the owners internal managements figures for the 2020 year.

What percentage of the business is cash/credit?
30% of the business is cash sales. They also have snapscan and card facilities

What is the age analysis of the debtors book?
None

How could the profitability of the business be improved?
You can expand on your external events as you have the capacity to cater for all corporate events and markets. They have also through of developing an app for customers to pre-order and pay for their beverage before pick-up.

What is the total staff complement?
8 - Permanent staff members.

Give a breakdown of staff/ functions/ length of service?
Most of the owner's staff has been with her since she started the business 7 years ago. All staff a trained as qualified baristas.

Do any receive special perks or incentives?
By the owner's discretion, they receive bonuses in the respective birthday month.

Do any have management potential?
All staff is allocated at their coffee trailer and the owner manages the business as a whole. Ideally, a new owner would need to fulfill this role.

How involved is the Owner in running the business?
The owner is involved in the daily operations of the business.

When does the current lease end?
The owner has negotiated a favourable rental agreement at all her locations.

Is there an option of renewal & what period?
Yes, this can be discussed.

What are the trading hours?
Monday - Friday 06:30 - 16:30 (These our are dependent on evening events) Weekend times differ from each event.

What are the main assets of the business?
A full asset list can be provided to an interested buyer. 8 fully equipped coffee trailers and one vehicle.

Are any items not included in the sale?
All items on the asset list will be included in the sale.

What is their overall condition?
All assets are in a good and working condition. Coffee machines will be serviced before a new owner takes over the business.

How have they been valued ?
Owners valuation has been used.

Which assets are on lease/HP and with whom?
The vehicle is still on lease and the settlement amount is R80 000, preferable the new owner should take over the vehicle.

Are they presently insured?
Yes, the business has full comprehensive insurance on all the trailers and vehicle.

Strengths?
- Great business and easy to operate - Loyal staff - Low overheads - Great business model and good margins - Captive market - Mobile - Scope fort growth

Weaknesses?
- Competition exists at the sites they've chosen to be located at.

Opportunities?
- New owner can expand into the corporate market as well as other external events. - Launching of a pre-order application.

What is the reason for the sale?
The owner has successfully run the business from a startup to a extremely successful business. She has come to the decision to sell the business and move on to something else.

Why is this a good business?
Great business model with low overheads and a captive market. There are options for expansion and growth within the business. Loyal staff and favourable rental agreements. This business is ideal for an seasoned entrepreneur or someone entering the marketing to own their first business.

What is the price plus stock and the profit?
The business is listed for R 1 950 000 with an average net profit of R80 000 per month.

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FRANCHISE DETAILS

Aldes Focus

6 members
50 active mandates
Gauteng
Menlyn Woods Office Park Office Block C 291 Sprite Street Faerie Glen
0081

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