Popular light meal restaurant in well established up market mall

Asking Price

R2,017,000

Monthly Profit

R61,777

Asset Value

R 800,000

Stock Value

R 60,000

Yearly Net Profit

R 741,319

Summary

Easy dining restaurant with a comprehensive menu is situated in a very popular up market Port Elizabeth Mall. The menu offers all day breakfasts, pancakes, tramezzinis, pizza's and pasta's , burgers etc, and a kiddies menu.

Give me more information

Fully describe the business's activities?

Stylish fully licensed restaurant set in up-market area of Port Elizabeth offering a comprehensive range of "all day" breakfasts and a variety of dishes from Wraps and Tramezzini's to Burgers and Pizza's, Pastas and a Kiddies Menu too.

How long has the business been established?

Since 2007

How long has the owner had the business?

Since 2022

Give a breakdown between sit-down, takeaways and deliveries

Predominately sit down, but growth opportunities via take aways, Uber and Mr Delivery

How does the business operate on a daily basis?

The restaurant has two managers, who handle the operational functions of the business
The Owner handles the admin functions such as banking process etc.

How are the clients attracted to the business?

The restaurant has become a destination point for many diners over the years and is very well supported by the regulars.

What Advertising/Marketing is carried out?

A marketing person handles the Face Book marketing and they also have a photographer who handles their menus, designs and posters.

What competition exists?

There are other restaurants in the area but they have their own unique menu offers and regular clientele.

What are the seasonal trends?

As with most businesses in coastal towns, there is an element of seasonality.

Is the business VAT Registered?

Yes

What VAT documentation is on file?

As and when required for a Due Diligence, the information will then be made available.

Are there up-to-date Management Accounts available?

Yes, as and when required they will be made available.

What percentage of the business is cash/credit?

95% Credit card...a very small cash component

How could the profitability of the business be improved?

The trading hours can be extended if a new Owner wishes to do so.
Take Aways and meal deliveries of the restaurant is an opportunity to increase sales.

What is the total staff complement?

18 staff members

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

Bar/Barista: 3
Waiters: 5
Kitchen Staff: 7
Supervisor: 1
Managers: 2
There is a structure in place for the staff reporting through management.

Do any receive special perks or incentives?

The managers receive an incentive based on the GP of the business.
The staff retain the tips.

Are they on contract?

Yes, the staff have contracts.
The business has a labour consultant in place who handles all labour/disciplinary issues.

How involved is the Owner in running the business?

The Owner oversees the business but is not operationally involved.
Owner handles cash and banking.

When does the current lease end?

September 2028

Is there an option of renewal & what period?

Yes, a new lease will be discussed between the Buyer and the Landlord at time of Due Diligence

What are the trading hours?

Monday to Friday: 08-00 to 18-00
Saturdays: 08.00 to 17-00
Sundays and Public Holidays: 08-00 to 14-00

What is the square meters of the business?

Store size is 169.6 square meters.
The restaurant has seating for 77 diners.

Is a copy of the lease available?

Yes

Do you require a licence?

A full liquor license is in place.

What lease deposit and/or other surety is required?

A lease deposit is in place and lodged in an interest bearing call account.

What are the main assets of the business?

Fixtures and fittings, kitchen equipment and tables and chairs etc.
There is no vehicle included in the transaction.

What is their overall condition?

Good working order.

Do any require repairing?

How have they been valued ?

Owners second hand value.

Which assets are on lease/HP and with whom?

All assets are fully paid for

Are they presently insured?

Yes

Strengths?

This business name was established in 2007 so it is well known in the region.
Been trading solidly for 19 years.
An established name with a loyal and regular customer following.
The location within the mall is excellent.

Weaknesses?

The current Owner has other demanding business interests which prevent him from spending more time at this business.

Opportunities?

The trading hours can be extended if a Buyer choses to do so.
The delivery / take away side of this business is an opportunity for business development

Threats?

There are no threats to an experienced restauranteur who retains the business character and service levels.

What is the reason for the sale?

The Owner has a number of other business interests that impact on his time and he needs to reduce his workload.

Why is this a good business?

This is an ideal opportunity for an experienced restauranteur who enjoys the family type environment and who can take this already successful business to new heights.