Franchised Pizza fast food outlet in a popular Garden route town.

View photos

Asking Price

R2,030,000

Monthly Profit

R34,783

Asset Value

R 1,200,000

Stock Value

R 30,000

Yearly Net Profit

R 417,396

Summary

Franchised fast food pizza outlet in the Garden Route coastal town Wood fired pizzas and pastas and a new product range being introduced with a dark kitchen and on-line sales.

Give me more information

Fully describe the business's activities?

Based in a popular Garden Route coastal town.
Known for top quality foods, and the Franchisor is very active with promotions and product and business developments.
The business enjoys strong over the counter sales, as well as excellent support through Mr Delivery and through Uber.

How long has the business been established?

This branch is 3 years old and trading well

How long has the owner had the business?

Since Inception

Give a breakdown between sit-down, takeaways and deliveries

Take Away fast foods ...few tables available to eat onsite but in take away packaging.

How does the business operate on a daily basis?

The Owner works between the stores if and when they feel the need to do so.
The outlet has a team structure with a manager in place.

How are the clients attracted to the business?

Strong above the line advertising for the national brand supported by a high level of instore promotional activities, loyalty programs and buying incentives.
A portion of the packaging costs are used for instore promotional activity.

What Advertising/Marketing is carried out?

National brand advertising by the Franchisor.
Local marketing and sales initiatives at store level.
The Owner also handles Face Book and Google ads, as well as local media adverts.

Does the business have any contract work?

The business does have certain favoured schools whom they sponsor in both regions where they have a footprint.

What competition exists?

There are a number of competitors in this fast food environment.
However, this particular brand offers some unique aspects to their business that is a point of difference.
Their target market is the middle to upper income bracket family market.

What are the seasonal trends?

Sales through the years are quite similar with the exception of the December festive season and school holidays.

Are there up-to-date Management Accounts available?

Yes

What Balance Sheet and Income Statements are available?

All information up to end financial year 2026 will be available to an approved Buyer.

What percentage of the business is cash/credit?

A high contribution of credit card sales

What is the age analysis of the debtors book?

Not Applicable

How could the profitability of the business be improved?

The profitability will increase significantly with the implementation of a recently introduced dark kitchen on a national basis.
This brings a new income stream whilst making use of the current facilities.

What is the total staff complement?

11 staff members.

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

There is a Senior and Junior manager in place.
Bakers, Assemblers, Fryers, Cashiers and Drivers.

Do any receive special perks or incentives?

There are staff incentives in place which the managers can use internally to motivate the staff.

Are they on contract?

All staff have valid contracts

How involved is the Owner in running the business?

The Business Owner does not play an operational role but he has the following responsibilities
- Check systems, financials, point of sale etc
- Address the marketing and advertising initiatives
- Oversees that store standards and operating procedures are adhered to
- Checking supplier quality and service deliver standards are maintained
- Pay surprise visits and structured visits to each branch

When does the current lease end?

2028
The lease is renewable

Is there an option of renewal & what period?

Yes, subject to negotiation with the landlord at time of Due Diligence

What are the trading hours?

Sundays - Mondays: 10am to 8pm
Tuesday to Thursday: 10am to 8.30 pm
Friday - Saturdays: 10am to 9pm

Is a copy of the lease available?

Yes, as and when required

Do you require a licence?

Health and Safety for the vent and grease traps and pest control.

What are the main assets of the business?

Ovens
Working tables and equipment
Fridges, freezers
Fryers, grillers, warmers and other kitchen equipment
Fixtures and fittings as per the fast food franchise livery
POS and Sales equipment
Packaging materials
Stock of around R70,000 to R80,000 at each store normally

Are any items not included in the sale?

No, all assets as presented are included in the sale.

What is their overall condition?

Good condition but as with all equipment general ongoing maintenance is required at times.

Do any require repairing?

How have they been valued ?

Owners second hand value

Are they presently insured?

Yes

Strengths?

Top quality wood fired pizza's and pastas known for their finest flavours and product quality
Top quality ingredients ensuring consistent premium product
The brand has a reputation far above the market norm when it comes to quality
The group have recently introduced a "dark kitchen" preparing burgers for delivery
Long established national brand with over 100 outlets in South Africa and international representation.
Efficient take-away focused model with controlled overheads.
In-house delivery team of 4 scooter drivers in each branch (8 total) in each outlet add to the strength of the business.
Experienced and well trained staff

Weaknesses?

The business requires skilled staff and well managed operational procedures especially over busy periods, so well trained staff are required at all times.
The Owner needs to ensure strong oversight of the business to ensure that standards are adhered to.

Opportunities?

"Dark Kitchens" have been introduced with a product range that will be sold online and which will generate an additional income stream with the same operational overheads
Systems improvements can reduce dependency on the Owner

Threats?

There are always promotional challenges within this sector but this brand is known for their product quality and service levels
Rising food and operational costs require that management pay attention to ensure low shrinkage

What is the reason for the sale?

The Seller has successfully traded with this franchise operation for many years but he and his family are looking to emigrate in the near future

Why is this a good business?

This is an excellent business for an entrepreneur with a flair for the food industry to become part of an exceptionally strong national premium franchise brand.
The business does not require the Owner to be on hand at all times since they have well structured teams in place.
This Franchise operation is entitled to right of first refusal for any additional outlets to be opened within the Garden Route, and also additional outlets within George itself.
The Seller is required to supply proof of funds prior to confidential information being shared.