Fully describe the business's activities?
This is a very well established. well known and popular neighbourhood restaurant and take-away that is situated in a busy shopping centre in the Northern Suburbs
How long has the business been established?
How long has the owner had the business?
Give a breakdown between sit-down, takeaways and deliveries
Take-aways and deliveries account for approximately 10% of the business currently.
How does the business operate on a daily basis?
The operating hours are from 12.00 to 21.00 Monday to Saturday and 12.00 to 15.00 on Sundays
How are the clients attracted to the business?
Regular customers comprise a large percetage of business. Walk-ins from visitors to the shopping centre are also an important source because the restaurant is very strategically located near the undercover parking area and entrance to the main anchor tenant. There is also a Facebook page and website.
What Advertising/Marketing is carried out?
None as it is not deemed necessary
What competition exists?
Covid19 has resulted in a couple of the restaurants in the shopping centre closing. There is an Indian cuisine restaurant , three coffee shops and a franchised take-away in the shopping centre currently.
What are the seasonal trends?
Turnover is relatively stable throughout the year.
How did the Covid-19 pandemic impact the business turnover / daily operations?
Restaurants were heavily impacted by the hard lockdown but take-aways sustained the business until full opening of the sector occured. The business has rapidly recovered and is trading at almost the turnover levels as before.
Is the business VAT Registered?
What VAT documentation is on file?
All the necessary registration, source documents and returns are maintained
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
10% to 20% is cash, the balance is paid by card
How could the profitability of the business be improved?
The restaurant could open for breakfasts and the take-away / delivery service could be marketed to the large business community in the area.
Is Seller finance available and for what amount?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
1 x Manager 7 x Chefs / Cooks 2 x Food Assistants (i.e. coffee preparation etc.) 6 x Waiters 2 x Cleaners Three of the chefs have been with the business since inception (28 years) The manager has been with the restaurant for the past 3 years
How involved is the Owner in running the business?
The Owner has not been very involved since Covid19 started. He does, however, visit daily to review operations, check daily takings and reconciliations etc. Prior to Covid19, he did the above but also used to visit during the busy periods to meet and greet guests and carry out the above tasks.
When does the current lease end?
Is there an option of renewal & what period?
Yes. Renewal terms or between 3 and 5 years.
What is the annual escalation %?
8% per current agreement
What are the trading hours?
12.00 to 21.00 on weekdays and Saturdays. 12.00 to 15.00 on Sundays
What is the square meters of the business?
260 sqm inside and 70 sqm outside The restaurant can seat approximately 100 people
Is a copy of the lease available?
Do you require a licence?
Yes, liquor licence which will need to be tranfered to new owner
What lease deposit and/or other surety is required?
One month deposit Personal surety is also required
What are the main assets of the business?
Kitchen equipment, fixtures and fittings, furniture and cash register. Assets also comprise loose items such as kitchen utensils, pots and pans, knives and forks etc.
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
How have they been valued ?
At book value
Which assets are on lease/HP and with whom?
Are they presently insured?
Strong and well known neighbourhood restaurant that has been operating in the area for 28 years Strategic location in very busy, large, neighbourhood shopping centre A large base of loyal, regular customers
Only weakness is the sector's vulnerability to Covid19. This, however, was mitigated with a take-away service. The resilience of this restaurant has been proven as the turnover has recovered to prior levels in a short period.
Offer a breakfast service Market the take-away and delivery service to businesses in the area
Covid19 lockdowns. Covid is, however, no longer a total unknown threat and there is world-wide experience how best to deal with it going forward which will no doubt evolve rapidly over the next 6 - 12 months.
What is the reason for the sale?
Owner is retiring and relocating
Why is this a good business?
The restaurant has a long and very successful track record that spans 28 years in the Northern Suburbs. It has excellent and experienced staff in key positions and can continue running with minimal involvement of the owner, should the owner wish to play more of an oversight role.
What is the price plus stock and the profit?
R2,2m excluding stock (which is in the region of R30,000)
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