2 Franchised pie outlets, one in George and one coastal based in popular town.

Asking Price

R1,640,000

Monthly Profit

R46,184

Asset Value

R 60,000

Stock Value

R 40,000

Yearly Net Profit

R 554,205

Summary

Fine business opportunity offers 2 franchised pie stores, one based in George, and the second in a popular coastal town, The Sellers have been in this franchise group for many years and feel that it is time to move out of the pie business and explore other challengers. The business have on-site manufacturing and preparing in their George branch, and supply their second branch from these premises.

Give me more information

Fully describe the business's activities?

Manufacturing and processing of pies on-site, selling to the general public over the counter as well as wholesaling.

How does the business operate on a daily basis?

The George business is Owner managed and operated on a daily basis.
The second branch has a staff structure in place.

How are the clients attracted to the business?

Part of a national franchise group with above the line marketing and advertising.

Does the business have any contract work?

The business also wholesales pies to businesses and schools etc.

What competition exists?

There are numerous other pie outlets in the town, each with their own customer following.

Is the business VAT Registered?

Yes

What VAT documentation is on file?

As and when required

What percentage of the business is cash/credit?

50% Cash / 50% Card estimate

How could the profitability of the business be improved?

The product range can be increased to include new recipes.
Drawing stock from the Franchisors central kitchen can be evaluated

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

General workers in the main branch, under supervision of the Owner.
A staff structure is in place in the second branch.

How involved is the Owner in running the business?

The one Owner manages the George branch on a daily basis.
The Owners visit the second branch on a regular basis.

When does the current lease end?

July 2027

Is there an option of renewal & what period?

Yes, 5 years negotiable.

What are the trading hours?

George branch: 08.00 to 17.30
Second branch: 08.00 to 18.00

What are the main assets of the business?

Equipment such as ovens, fridge and freezer rooms, ovens, tables etc.

Strengths?

Strong brand name as part of a national franchise operation.
Well known for their quality throughout the Garden Route region.
Excellent service levels.

Weaknesses?

Margins are impacted by meat prices.

Opportunities?

Strong regional growth.

Threats?

No known threats to this business.

What is the reason for the sale?

The Sellers have been involved in the pie industry for many years, and wish to explore new business opportunities.

Why is this a good business?

This is a good opportunity to enter the franchised business environment and explore an entrepreneurial opportunity by acquiring two retail (and wholesale) outlets at a very attractive price.