Fully describe the business's activities?
This Takeaway/Fast Food Outlet sells takeaways, coffee, snacks, airtime etc. They also provide a copy/printing service. They have tables and chairs outside and have regular sit-down customers.
How long has the business been established?
The business was established in 1995.
How long has the owner had the business?
How does the business operate on a daily basis?
They start at 05:30 and prepare the shop and ovens before opening the doors. The kitchen assistant arrives at 06:00 when they start trading. They bake pies on site, prepare food, place order for stock and receive stock, etc.
How are the clients attracted to the business?
The business is located in direct vicinity of major government buildings and have high foot traffic passing between the various departments and office workers in the area.
What Advertising/Marketing is carried out?
No advertising/marketing is carried out. Word of mouth.
Does the business have any contract work?
No, they do not have any contract work, but they have a well established and loyal customer base to the point where they are on first name basis with most of their customers.
What competition exists?
There are a number of other cafes, takeaways and coffee shops in the area, but most are Halaal. This business is known for selling 'the real thing' with regard to bacon & egg sandwiches etc and has a well established and 'regular' customer base. They have also build up a trust relationship with Halaal customers and who support the business.
What are the seasonal trends?
Because of all the government departments in the area, they do not experience seasonality. They do however close in December for +- 10 days during the holidays.
How did the Covid-19 pandemic impact the business turnover / daily operations?
They obviously had no income while being closed during COVID lockdown, but since re-opening business has picked up again.
Is the business VAT Registered?
The business is not VAT registered.
Are there up-to-date Management Accounts available?
They keep a daily handwritten record of sales and purchases, and all invoices for purchases and the lease are kept on file for the Accountant. Because of COVID lockdown, these have not been brought up to date yet. Figures can be verified during Due Diligence. It has to be noted that Cape Town has experienced regular load shedding in 1919 (FY 2020 ) during which time the till could not be operated. Cash sales during load shedding was therefore not captured, and there is a cash component not included in the FY 2020 figures - which would improve the T/O somewhat.
What Balance Sheet and Income Statements are available?
AFS Feb 2020
What percentage of the business is cash/credit?
How could the profitability of the business be improved?
T/O and profits could be improved by offering a delivery service and providing snacks/platters for office meetings for which they have received many requests in the past. Better stock control and sourcing better pricing for some stock items from suppliers.
What is the total staff complement?
One of the owners plus two assistants.
Give a breakdown of staff/ functions/ length of service?
Both assistants assists with the preparation of food, cleaning, and helps at the counter when busy, etc. 1 X Assistant +- 5 years 1 X Assistant recently appointed
Do any receive special perks or incentives?
Since COVID, salary of Assistant has been reduced until business recovers from the effects of COVID.
Are they on contract?
How involved is the Owner in running the business?
The owner operates the business full-time.
When does the current lease end?
The current lease ends in 2023.
Is there an option of renewal & what period?
Yes, 5 years.
What is the annual escalation %?
What are the trading hours?
06:00 - 14:30 week days. They are not open on Saturdays by choice, but Home Affairs is open and the business may benefit if they open till 12:00 on Saturdays.
What is the square meters of the business?
Do you require a licence?
The normal Health Certificates are required. No licenses are required.
What are the main assets of the business?
Kitchen equipment. A full asset list is on file and available during Due Diligence.
Are any items not included in the sale?
All items are included, except the coffee machine which was placed FOC for the use of the supplier's coffee.
What is their overall condition?
All assets are in good working order.
How have they been valued ?
Assets have been valued at owner's estimate.
Which assets are on lease/HP and with whom?
All assets are fully paid for.
Are they presently insured?
Assets are fully insured.
This popular Takeaway offers good cash flow. They are well-known in the area. Very good location in direct proximity to the Magistrates Court, SAPS, Parliament, Home Affairs, etc. ensuring high foot traffic. They are the only non-Halaal Takeaway in the area serving real bacon. They know most of their regular clientele by name and know their habits and preferences, and have established a special relationship with their regulars.
Closed on Saturdays. Don't do deliveries.
Delivery service Platters for office meetings/birthdays Longer trading hours to catch customers on their way home Saturday trading
Other than COVID 19, none perceived.
What is the reason for the sale?
Health reasons. The sellers want to return to KZN where their family is.
Why is this a good business?
It is a cash only business with opportunity to improve T/O with a little extra effort e.g. by doing deliveries, offering platters for office meetings and birthdays, and staying open a little later and/or opening on Saturdays. Early start but home early and off on weekends.
What is the price plus stock and the profit?
Asking price R1,200,000 plus stock +- R15,000.
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