How does the business operate on a daily basis?
The business is situated on the North West University Campus in Potchefstroom, food, drinks, both in sit down and take away format is provided to students on campus

How are the clients attracted to the business?
The business is at the centre of the university, thus students pass by the premises consistently and purchases from the store

What Advertising/Marketing is carried out?
None currently

What are the seasonal trends?
During breaks with students not on campus there is a decline in sales

How did the Covid-19 pandemic impact the business turnover / daily operations?
Similar to other restaurants the business is subjected to lockdown regulations

Is the business VAT Registered?
Yes

What VAT documentation is on file?
Owner can supply all documentation

Are there up-to-date Management Accounts available?
Yes

What Balance Sheet and Income Statements are available?
Annual Financial Statements

What percentage of the business is cash/credit?
Most of the business is cash, which is predominantly driven by Debit Cards

What is the age analysis of the debtors book?
There are no real debtors on the books

How could the profitability of the business be improved?
There is significant opportunity to develop online takeaway services for the students in vicinity as well as the greater Potchefstroom

Is Seller finance available and for what amount?
Seller finance can be discussed for about 20% of the sales value, this would be dependent on credit and guarantee profiles of potential buyer

What is the total staff complement?
There are a total of 8 staff, which includes a Manager that can operate the entire business, mostly the rest of staff are related to Kitchen area of the business. Waiters are traditionally the students on campus that are paid a commission only structure.

Do any receive special perks or incentives?
The Manger of the business receives a weekly allowance for extra hours as well as fuel allowance per week

Are they on contract?
All staff are on a 12 month contract that gets reviewed and renewed each year where applicable

How involved is the Owner in running the business?
The owner is a hands on individual that is actively involved in the business, yet the current manager can operate the entire business without owners presence

Any special arrangements for the staff related to the Covid-19 pandemic?
There are no special arrangements and staff utilised TERS and UIF during Covid Period

When does the current lease end?
December 2022 with possibility to renew

Is there an option of renewal & what period?
Yes, this will be dependent on negotiations

What is the annual escalation %?
10%

What are the trading hours?
Monday to Friday 08:00 to 17:00

What is the square meters of the business?
342 squares

Is a copy of the lease available?
Yes

Do you require a licence?
Liquor Licence currently active under University Liquor Licence

Any Special Lease Arrangements
The lease includes infrastructure such as Generator backup from University as well as the cooling rooms that is supplied and maintained by the University

What are the main assets of the business?
The main assets of the business is the equipment used in the Restaurant

Strengths?
The business is well located on Campus at the heart of campus daily activity and student traffic

Weaknesses?
COVID lockdown placed pressure on the business as the focus of the business is currently focused on campus sales only

Opportunities?
Expanding the product offerings to include deliveries to residences on and around the campus as well as the greater Potchefstroom

Threats?
Continued COVID Lockdowns and delayed student return to Campus, especially if product channel to market is not expanded

What is the reason for the sale?
Owner does not have te working capital to diversify the business beyond the current focus on the premises being on campus, nor wishes to drive the business forward through diversifying into greater take aways, online and service hour expansions, which will be required to adjust to the current COVID environment

Why is this a good business?
This is a good business that has an excellent position on the campus, and as lockdowns and restrictions are lifted the business will rebound to its former cash flow positive structures, with revived energy that will focus on expanding the channels to market, as well as the greater Potchefstroom captive market, this business can become a great business.

What is the price plus stock and the profit?
The price is R1m, including assets