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  • Mandate: 34902
  • Added: 31 Aug 2021
  • AFS
  • 403

Very Profitable Butchery. Best Location in JHB. 27 Years of Trading. Northern Suburbs.

Gauteng, Johannesburg
Mandate 34902
Added 31 Aug 2021
R 5,900,000* ZAR
Stock: R 195,000
Assets: R 2,162,062
R 242,347 ZAR
Erich Haupt
Aldes Optima

Location. Location. Location. This butchery is in a prime spot in this Northern Johannesburg suburb. 27 years of trading. Well-known. Visible. Profitable.

Very Profitable Butchery. Best Location in JHB. 27 Years of Trading. Northern Suburbs.
R 5,900,000* ZAR
Stock: R195,000
Assets: R2,162,062
R 242,347 ZAR

Location. Location. Location. This butchery is in a prime spot in this Northern Johannesburg suburb. 27 years of trading. Well-known. Visible. Profitable.

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Fully describe the business's activities?
Very busy butchery in prime location in leafy Northern Suburb of Johannesburg. The business also has a catering arm as well as a spit braai arm. They also sell spices, marinades and biltong and there is a take-away section selling prego rolls, steak rolls, burgers etc. On Sunday's they have a spit braai meal which is very well supported by the community and passing trade.

How long has the business been established?
The business was established in 1994 in this northern suburb of Johannesburg. It has therefore been trading for 27 years in the same area.

How does the business operate on a daily basis?
There are 17 staff members. The owners open and close and control the purchasing.

How are the clients attracted to the business?
Location, Location, Location. Best spot in Johennesburg. Good passing trade and visibility. Very active Facebook page and very good SMS database showing specials etc.

What Advertising/Marketing is carried out?
As above. The daily take-aways section and Sunday Spit Braai meals attract attention and translates into people purchasing in the store. They are also registered on Uber Eats for deliveries.

Does the business have any contract work?
They do supply a nearby Country Club with their meat as well as doing canteen catering in businesses as preferred suppliers.

What competition exists?
Normal supermarket butcheries but they are not really any competition. The residents in this area prefer to have their own butchery that they purchase from.

What are the seasonal trends?
September starts to get busier after winter. October to December is very busy. Plus end-of-year functions on the catering and spit braai side.

How did the Covid-19 pandemic impact the business turnover / daily operations?
The revenue increased by R4.5 million during the worst of the pandemic in 2021.

Is the business VAT Registered?
Yes, the business is VAT registered.

What VAT documentation is on file?
Normal VAT returns and recons are on file.

What Balance Sheet and Income Statements are available?
February 2021 Annual Financial Statements are available.

What percentage of the business is cash/credit?
All cards or cash. No accounts are opened for clients. There are one or two long-standing clients who pay weekly but this is never beyond R15 000 to R30 000 in total.

What is the total staff complement?
The total staff compliment is 17 plus the two owners.

Give a breakdown of staff/ functions/ length of service?
This is available to interested and qualified parties.

Do any receive special perks or incentives?
Only at the discretion of management and purely based on merit.

Are they on contract?
Yes, the staff have letters of appointment.

Do any have management potential?
Yes, there is the possibility of one member of staff stepping-up. He is being given more opportunities and training at the moment.

How involved is the Owner in running the business?
The owner is involved in the business every day.

When does the current lease end?
The current lease ends in November 2023.

Is there an option of renewal & what period?
Yes, there is an option for renewal for up to 5 years.

What is the annual escalation %?
The annual escalation is currently 7%.

What are the trading hours?
Monday to Friday: 7.30 am to 5.30 pm. Saturday to Sunday: 7.30 am to 2.00 pm.

Is a copy of the lease available?
Yes, a copy of the lease is available.

What are the main assets of the business?
Fridges, cold rooms, refridgerated display counters, meat cutting equipment, mincers, sausage machines etc.

What is their overall condition?
Very good.

Do any require repairing?
All equipment is in working condtion. Maintenance is top-notch.

Which assets are on lease/HP and with whom?
A Hyundai H100 bakkie used for deliveries in the bsuiness is on lease.

Will Seller settle or Buyer to take over?
This can be discussed.

Are copies of agreements available?
Yes, copy of the agreement is available.

Are they presently insured?
Yes, the entire business is comprehensively insured.

Excellent location. Very visible.Has been in the area for 27 years - so very well-known. Quality of product is excellent.

No real weaknesses.

Spit braai catering can grow hugely - especially with corporate functions, birthdays, anniversaries etc.Takealot Biltong purchase and delivery platform will be hugely popular.

This business thrived during Covid - that says it all.

What is the reason for the sale?

Why is this a good business?
Best location in Johannesburg. Very profitable. Affluent, established area. Well-known after 27 years of operating in the same area.

What is the price plus stock and the profit?
The asking price is R5.705 million plus stock at cost of approximately R195 000 = total of R5.90 million. Profits are R2.9 million per annum.

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Aldes Optima

1 members
16 mandates
P.O. Box 588

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