Sectors / Category

Annual turnover

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  • Mandate: 35133
  • Added: 20 May 2022
  • AFS
  • 416

Coffee shop with catering business

Gauteng, Other
416
Mandate 35133
Added 20 May 2022
R 893,000* ZAR
Stock: R 43,000
Assets: R 1,391,257
R 30,570 ZAR
Malcolm Keevy
(PRINCIPAL)
Aldes Elite
Gauteng, Sandton
Gauteng, Sandton
Summary

More than just a coffee shop. This delightful meeting place has multiple revenue streams.

Coffee shop with catering business
SELLING PRICE AFS
R 893,000* ZAR
Stock: R43,000
Assets: R1,391,257
R 30,570 ZAR
Summary

More than just a coffee shop. This delightful meeting place has multiple revenue streams.

To gain access to more business info
please supply us with your details below

Fully describe the business's activities?
A neighbourhood coffee shop which prepares and serves teas, snacks, confectionery and lunches and caters for the home/office delivery market and celebration functions.

How long has the business been established?
Established in February 2020.

How long has the owner had the business?
The owner started the business

Give a breakdown between sit-down, takeaways and deliveries
Approximately 80% of revenue is derived from in house service, the remainder from functions

How does the business operate on a daily basis?
All food is prepared on the premises under the direction of the owner. The shop opens at 8h00 and closes at 16h00 with the kitchen closing at 17h00 on weekdays. Either the owner or her partner are always present at the business premises..

How are the clients attracted to the business?
The coffee shop is located in a mall on a main road with direct access to the parking area. Clients are attracted to the coffee shop in four ways: its location is in a high traffic area which attracts walk in clients; it is a gathering point for locals who frequent the coffee shop for social and gastronomic reasons; three whatsapp groups have been developed, numbering nearly 600 members in total, who regularly order for home or office delivery; and it is a popular function venue for celebrations such as baby showers, kitchen teas, school staff functions and church/social groups due to the location of the venue and the excellence of the catering.

What Advertising/Marketing is carried out?
Primarily social media, consisting of whatsapp groups, a facebook presence, instagram and a website but the strongest business driver is repeat clientele and word of mouth endorsement.

Does the business have any contract work?
Neighbouring businesses are supplied on a continuous basis.

What competition exists?
Minimal competition exists in the location of the coffee shop.

What are the seasonal trends?
No seasonality

How did the Covid-19 pandemic impact the business turnover / daily operations?
There was a significant drop off in business due to Covid. However, adjustments were made in line with Covid protocols and the business is now growing rapidly with a full complement of trained staff.

What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Strict adherence to Covid protocols in all aspects of the business

Is the business VAT Registered?
Awaiting VAT registration from SARS

What VAT documentation is on file?
Will be supplied when available

Are there up-to-date Management Accounts available?
Yes

What Balance Sheet and Income Statements are available?
Full AFS history will be made available to a serious buyer

What percentage of the business is cash/credit?
5% of revenue is from credit sales. This is for customers who order frequently in a month.

What is the age analysis of the debtors book?
3% of business is on 30 day terms.

How could the profitability of the business be improved?
Increasing the proportion of "meal of the day" sales in the overall revenue mix. GP on the meal of the day is 68%.

Is Seller finance available and for what amount?
no

What is the total staff complement?
There are seven regular staff consisting of: 1 x pastry chef; 1 x chef; 1 x barista; 3 x waiters (4 days a week) 1 x cleaner 2 x temporary staff

Give a breakdown of staff/ functions/ length of service?
To come

Do any receive special perks or incentives?
The chef and the pastry chef each receive a 1% profit share

Are they on contract?
Permanent staff are all on permanent contract

Do any have management potential?
The pastry chef has management potential

How involved is the Owner in running the business?
The owner and partner combined are 100% involved in running the business

Any special arrangements for the staff related to the Covid-19 pandemic?
Covid protocols are enforced at all times

When does the current lease end?
December 2024

Is there an option of renewal & what period?
Yes

What is the annual escalation %?
7%

What are the trading hours?
Weekdays 8h00 - 16h00 Saturdays 8h00 - 13h00 Functions after 14h30

What is the square meters of the business?
114 sq. metres

Is a copy of the lease available?
Yes

Do you require a licence?
Yes

What lease deposit and/or other surety is required?
One month

What are the main assets of the business?
See fixed asset register

Are any items not included in the sale?
None

What is their overall condition?
Excellent

Do any require repairing?
No

How have they been valued ?
Depreciated according to SARS schedule

Which assets are on lease/HP and with whom?
None

What are their settlement amounts?
N/A

Will Seller settle or Buyer to take over?
N/A

Are copies of agreements available?
N/A

Are they presently insured?
Yes

Strengths?
High traffic location close to residential and industrial areas Regular client base Excellent reputation Value focused pricing strategy results in higher volumes Multiple marketing channels and contact points

Weaknesses?
Food consistency is critical and requires continuous vigilance

Opportunities?
Home cooked meal offering could be further developed Strong brand reputation is platform for growth

Threats?
General economic conditions

What is the reason for the sale?
Owners relocating

Why is this a good business?
Strong growth since inception despite Covid Excellent reputation is platform for future growth Skilled employees with quality orientation Recently renovated plumbing, lighting, electrics, ceiling, bathroom and kitchen

What is the price plus stock and the profit?
R 850 000

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AGENCY DETAILS

Aldes Elite

1 members
5 mandates
Gauteng , Sandton
11 Rockleigh 14 Chrysler Street Woodmead 2191
Sandton
4285

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