Fully describe the business's activities?
A very successfully run convenience store with a liquor licence and a take- away, situated in a densely populated, trendy area near to the city bowl and on a main thoroughfare.
How long has the business been established?
The business was established 27 years ago.
How long has the owner had the business?
The current owners acquired the business in 2018.
How does the business operate on a daily basis?
The business sells every kind of product one would expect to find in a convenience/grocery store and has a liquor licence and a kitchen for take-aways. They are open from 7am to 11pm daily and therefore offer huge convenience. The business is run on two shifts. An assistant manager and cashier are always on duty and the kitchen assistant and general assistant works during the day Monday - Saturday. The owner works flexi time.
How are the clients attracted to the business?
The store has been in its current position for many years and is well known in the area. The only advertising that is carried out is at the front of the shop.
What Advertising/Marketing is carried out?
Does the business have any contract work?
What competition exists?
There is a Checkers store in the adjacent street but further up from them which has been there for many years.
What are the seasonal trends?
Summer months are busier but the financials will show that there is not a relevant fall off in winter. The store attracts the custom of many international tourists due to its location to hotels, guesthouses and AirBnB's.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The shop operated throughout lockdown but was adversely affected for a few months, as were many businesses.
Is the business VAT Registered?
What VAT documentation is on file?
Up to date VAT documentation is on file and will be presented in a due diligence.
Are there up-to-date Management Accounts available?
Detailed up to date Management accounts are available.
What Balance Sheet and Income Statements are available?
Up to date Balance Sheets and Income statements are available.
What percentage of the business is cash/credit?
100 % cash via cash/Credit card/Snapscan.
What is the age analysis of the debtors book?
There are no accounts.
How could the profitability of the business be improved?
Profitability would be hugely increased : 1. By expanding the take-away offering for lunch service, opening the kitchen at night for dinner take-aways, offering sit down options, coffee and more baked goods. 2. Expanding the product offering to present more deli-like options. 3. Additional services like MY City, or drop off point for courier services etc.etc.
Is Seller finance available and for what amount?
What is the total staff complement?
1 x Owner 2 x Assistant managers 3 x Cashiers 1 x Kitchen assistant 1 x General assistant
Give a breakdown of staff/ functions/ length of service?
1 x Kitchen assistant . Oversees and prepares all take-aways. 20+ years. 1 x General assistant. Cleaning, certain orders, merchandising, 20+ years 3 x Cashiers. 1-4 Years. 2 x Assistant managers. Key holders. Orders, receiving stock and updating POS system, cash ups, supervision of staff and overseeing of daily running of the store. 2+ years.
Do any receive special perks or incentives?
Are they on contract?
All permanently employed.
Do any have management potential?
Yes - can be discussed.
How involved is the Owner in running the business?
The owner spends time in the business daily but is mainly involved in the administrative functions.
When does the current lease end?
Is there an option of renewal & what period?
Yes. 5 Years
What is the annual escalation %?
9%. Escalation in March. The landlord undertook not to apply the escalation this year in light of the impact Covid-19 had on the businesses.
What are the trading hours?
7am to 11 pm 7 days a week.
What is the square meters of the business?
Approximately 150 sq metres
Is a copy of the lease available?
Do you require a licence?
The transfer of the liquor licence to the new owner or their legal entity will have to be applied for.
What lease deposit and/or other surety is required?
To be discussed with landlord.
What are the main assets of the business?
A comprehensive asset list is available.
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
Normal maintenance on an ongoing basis.
How have they been valued ?
At fair market value.
Which assets are on lease/HP and with whom?
Are they presently insured?
The business has been in the area for 27 years and is very well known as a convenience destination with a loyal following amoungst the locals, employees of the surrounding businessess and practices and with the added benefit of tourist custom. It is situated in a vibrant, densely populated, high- income area and was able to trade throughout the different lockdown levels. The business has a liquor licence as well as a take away kitchen which attracts additional custom.
Very little effort is spent on advertising, social media and specials. The kitchen is not utilised to its full potential. No representation on online delivery platforms.
Draw in more AM customers with a coffee offering. Improve the outside sit-down area to attract more customers. Offer a lunch service. Develop a âdeli sectionâ. Explore other income streams such as drop off\ collection for courier services. Offer delivery using platforms like Mr D for food, groceries and wine.
There are no major threats.
What is the reason for the sale?
Although the business is highly successful, the owner has chosen to follow a different career path.
Why is this a good business?
This profitable convenience store is situated in an ideal position, has no competition, and is making an excellent income for its owners. It is doing all of this despite the fact that it needs further strategic improvements which will, undoubtedly,vastly improve the appeal of the shop thereby improving turnover and profit.
What is the price plus stock and the profit?
Selling Price : R 2 590 000 EXCLUDING stock Stock : R +- 400 000 - to be paid for in accordance with stock take results on the effective date. Average monthly adjusted net profit : R 87 400
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