"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
The business operates under two separate brand names out of two interlinked premises in a high traffic urban location. Both businesses have full equipped kitchens and offer take away, delivery and sit down eating options.
How long has the business been established?
The burger business was established in 2014, the pizza business acquired a few years later.
How long has the owner had the business?
The owner started the burger business in 2014 and bought the pizza business later.
Give a breakdown between sit-down, takeaways and deliveries
Takeaways are the largest contributor to sales but home delivery services such as Uber Eats and Mr. Delivery have shown significant growth over recent periods.
How does the business operate on a daily basis?
The businesses open at 8h00 and close at 21h00. Staff work from 7h30 to 21h30 from Monday to Saturday. The businesses are not open on Sundays.
How are the clients attracted to the business?
The businesses are in a high traffic area with frontage onto the main street. In addition, two websites feature the businesses and word of mouth is a significant driver of new clientele.
What Advertising/Marketing is carried out?
There is continuous social media presence through two websites. Word of mouth recommendations, advertising on media boards in the local community and pamphlets featuring specials are distributed to the target market..
Does the business have any contract work?
No
What competition exists?
There is a McDonalds in the neighbourhood, a roadhouse and other fast food outlets further afield.
What are the seasonal trends?
There is a peak in December but generally seasonality is not an important consideration
How did the Covid-19 pandemic impact the business turnover / daily operations?
Covid caused revision to food handling systems, a short term drop in demand and a more focused approach to hygiene in general with limited access to stores and entrenched disinfecting protocols.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
All the above are in place.
Is the business VAT Registered?
Yes
What VAT documentation is on file?
All VAT documentation is on file and will be made available to an approved buyer
Are there up-to-date Management Accounts available?
Yes. Monthly management accounts will be made available to an approved buyer
What Balance Sheet and Income Statements are available?
Balance sheet and Income statements will be made available to an approved buyer
What percentage of the business is cash/credit?
Cash 100%
What is the age analysis of the debtors book?
N/A
How could the profitability of the business be improved?
Opening on Sundays would boost turnover and profitability
Is Seller finance available and for what amount?
Vendor finance will depend on the buyer and the deal
What is the total staff complement?
There are 17 employees across both businesses
Give a breakdown of staff/ functions/ length of service?
Drivers x 4; Kitchen staff x 5; Cashiers x 3; Pizzamen x 3;
In addition there are two managers, one female, one male.
Do any receive special perks or incentives?
They are all incentivised with monthly targets
Are they on contract?
All have employment contracts
Do any have management potential?
The managers have growth potential
How involved is the Owner in running the business?
The owners is 100% involved in running the business
Any special arrangements for the staff related to the Covid-19 pandemic?
No, just diligent enforcement of hygiene protocols
When does the current lease end?
June 2024 for store 1 and January 2025 for store 2
Is there an option of renewal & what period?
Yes
What is the annual escalation %?
6% for store 2 and 8.5% for store 1
What are the trading hours?
8h00 to 21h00
What is the square meters of the business?
200 square metres
Is a copy of the lease available?
Yes
Do you require a licence?
No
What lease deposit and/or other surety is required?
2 months rental
What are the main assets of the business?
The awareness and perception of the brand names - highly valued in the local community ;
packaging stocks
generator
fully equipped kitchens to cater to the market
Are any items not included in the sale?
owners residence is not for sale
business will be sold as a going concern out of the cc
What is their overall condition?
Excellent
Do any require repairing?
None
How have they been valued ?
Owners best estimate
Which assets are on lease/HP and with whom?
Point of sale system rented
Coffee machine is rented
Will Seller settle or Buyer to take over?
Buyer will take over
Are copies of agreements available?
Yes
Are they presently insured?
Yes
Strengths?
Brand awareness;
Brand value perception;
Geographic location - high traffic, easy access for delivery service;
8 year track record;
Competent, well trained staff;
Proven operations will ensure seamless transition for new owner
Weaknesses?
None, other than economic cycle
Opportunities?
Expand home delivery, which has shown strong growth
Proven systems will allow seamless expansion into franchising
Opening on Sundays will increase revenue significantly with a slight increase in labour and consumables
Threats?
Competitive activity is an accepted aspect of the fast food markets
What is the reason for the sale?
Owner has met his objectives for this business and now wants to focus on his other business interests
Why is this a good business?
Strong track record
Excellent platform for future growth
Well placed for future lifestyle developments
No franchise fees
Total control over future development
What is the price plus stock and the profit?
R1 250 000 plus R60 000 in stock
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