Fully describe the business's activities?
Licensed coffee shop ideally situated in a busy local shopping centre serving breakfasts, lunch, coffee & home baked cakes.
How long has the business been established?
The owner established the business 5 years ago.
How long has the owner had the business?
What steps are in place to solve load shedding difficulties?
They offer a limited menu during load shedding, and have gas cooking and emergency lights in place. The operation continues during this time.
How does the business operate on a daily basis?
They serve coffee/beverages, breakfasts, lunch, home baked cakes and is open seven days a week. Preparation of food, stocktake and ordering of fresh produce. Cashup and cleaning of premises.
How are the clients attracted to the business?
The business is ideally situated next to a children's play area in the courtyard of a busy shopping centre, surrounded by three anchor tenants being Woolworths, P&P and Clicks. There is a Private Hospital close by contributing to the centre's feet.
What Advertising/Marketing is carried out?
No advertising or marketing is carried out, except on their Facebook page.
Does the business have any contract work?
What competition exists?
There is a Wimpy located on the outside of the Centre, but generally this is not regarded as competetion.
What are the seasonal trends?
Winter is generally quieter.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
Up-to-date Management Accounts are on file and available on request.
What percentage of the business is cash/credit?
How could the profitability of the business be improved?
Menu prices have not been adjusted in a long while and has not kept up with food price increases; Using the POS system effectively to manage shrinkage; Align staff hours to business needs.
Is Seller finance available and for what amount?
What is the total staff complement?
Total of 15 employees.
Give a breakdown of staff/ functions/ length of service?
BOH - 7 staff members ranging from 6 months - 5 years service FOH - 7 staff members ranging from 6 months - 4 years service Manager - 1 year service
Do any receive special perks or incentives?
No special perks or incentives apply.
Are they on contract?
All staff are on contract.
Do any have management potential?
The business is currently Manager run.
How involved is the Owner in running the business?
The business is Manager run and the Owner spends only a few hours per week at the store.
When does the current lease end?
The current lease ends November 2021.
Is there an option of renewal & what period?
What is the annual escalation %?
6% annual escalation.
What are the trading hours?
09h00 - 18h00 Monday - Friday 09h00 - 15h00 Saturday 00h00 - 14h00 Sunday
What is the square meters of the business?
170sqm inside 50sqm outside under adjustable louvrered awning
Is a copy of the lease available?
A copy of the lease is on file and will be made available during Due Diligence.
Do you require a licence?
General business licence.
What lease deposit and/or other surety is required?
Currently R30,000 lease deposit required.
What are the main assets of the business?
Equipment, funiture and crockery.
Are any items not included in the sale?
What is their overall condition?
Used but good overall condition.
Do any require repairing?
All assets are in good working order.
How have they been valued ?
Fair replacement value.
Which assets are on lease/HP and with whom?
All assets are fully paid up.
â¢ The business is very well established with a large loyal following; â¢ Ideal location within the centre with good anchor tenants; â¢ Conveniently located next to kids play area; â¢ Good cash flow; â¢ Well trained and loyal staff, capable of running the store independently.
â¢ Owner currently not running a tight ship due to other business interests; â¢ The business will benefit from an active advertising and marketing drive; â¢ The business will benefit from a fresh, energised and innovative/new approach by a new owner.
â¢ Offer catering / functions; â¢ Promote liquor / cocktail sales; â¢ Extend weekend trading hours; â¢ Explore the market of the private hospital that is within walking distance.
Prevailing political factors influencing the economy negatively RSA International Investment Status / Junk status COVID 19 regulations
What is the reason for the sale?
The seller and her husband is emigrating.
Why is this a good business?
The business is well established with both suppliers and customers; Located in a good neighbourhood; Centre offers covenient shopping and attracts feet also from nearby Hospital; Valid liquor licence offering opportunities to host special events like birthdays, kitchen teas, stork parties, etc; Good cash flow.
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