Ref. No - BFS938432

LocationSouth Africa, KwaZulu-Natal

Ref. No - BFS938432

Sector - Food

Asking Price
R690,000
Monthly Profit
R13,924
Asset Value
R 200,000
Stock Value
R 0
Yearly Net Profit
R 167,093

Summary

Drive the present turnover of R2m pa, past the previous manager-run R2.7m pa (no owner on site) by being an attentive owner; within a secure estate, with 2 years history, good staff & many opportunities.

Give me more information

Fully describe the business's activities?

Upmarket Restaurant Bar with liquor licence, operates within a secure Estate (600+) in Hillcrest Durban, with non-residents allowed in. The owner controls finances & ordering, while staff operate the business Wednesday – Sunday inclusive, serving breakfast, lunch & supper - inside & outside.
With a 2-year history, including better turnover when a manger was on site, you as an attentive owner can surpass the manager run turnover of R2.7m pa; noting that the seller has never been hands-on.

How are the clients attracted to the business?

This stunning restaurant bar has both inside and outside seating, in a secure estate, that attracts estate and non-estate patronage, as well as, estate deliveries, parties & functions. Apart from being well known in the area, an enticing Facebook page ensures interest.

What are the seasonal trends?

Holiday periods provide higher undriven turnover.

Are there up-to-date Management Accounts available?

The business is VAT registered, with information straight off GAAP records for 2 years.
Expenses have been averaged through the year, as with COS (at 44%).
The PTY may be purchased or the business out of the PTY, with the Liquor licence transferable either way.
Net profits are shown as normal, being EBITDA (incl owners benefits).

How could the profitability of the business be improved?

An attentive owner will ensure better staff performance, cost reductions and use social media etc to drive patronage, functions, events, etc

Premises Detail

Indoor seating = 30, outdoor seating = 60, bar = 50 standing, with a kitchen & toilet. Rent is R10 700 excl vat, with a max escalation rate of 8% pa.

What are the main assets of the business?

Kitchen equipment, furniture, fittings, crockery, cutlery & glassware reflect the upmarket estate it is housed in. All in good condition & working. A 2nd hand sale price would be some R200k +, but a new replacement value above R1.5m.

What is the reason for the sale?

Owner has never been involved much & wishes to retire properly.

Why is this a good business?

Secure attractive estate restaurant bar that has a proven record of doing better than it does with no manager /owner; so take hold of the opportunity & drive the turnover past the present R2m pa & the previous manager run R2.7m pa to it's true potential - especially through Halloween, Christmas & the 2027 Rugby World Cup.
Location

Contact | Enquire

Cliff

Cliff Bell

LocationSouth Africa

Preferred method of contact

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