Profitable Sandwich Baron - Large Business Park. JHB Northern Suburbs. Office Hours!

Asking Price

R750,000

Monthly Profit

R 29,036

Asset Value

R 118,000

Stock Value

R 35,000

Yearly Net Profit

R 348,426

Summary

Part of a successful franchise group this business is well-established, profitable and in the perfect position at the entrance of a major business park with very large and also medium-sized businesses.

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Fully describe the business's activities?

This well-established business operates as a sandwich shop servicing a major business park in the North of Johannesburg. It is part of a well-known and well-established and successful brand. It delivers a large part of its orders.

How long has the business been established?

The business has been operating for 8 years.

How does the business operate on a daily basis?

One of the employees opens the store at 8.00 am and closes the store at about 3.30 pm. The owner spends some time in the business every day but does also have other business interests.

What are the seasonal trends?

The business closes from the 16th December to about the 10th January every year.

Are there up-to-date Management Accounts available?

Yes, these can be provided.

What percentage of the business is cash/credit?

80% of revenue is from card transactions.
10% Cash
10% Uber Eats

How could the profitability of the business be improved?

Spending a bit more on marketing. The Platter market for the big businesses in the business park needs to be exploited more. Sale of coffee needs to be explored.

Do any have management potential?

The Teller, who also opens and closes the store on a daily basis, has the ability to step up into managing. She is also involved in procurement from suppliers.

How involved is the Owner in running the business?

The owner is only in the business about 60% to 70% of the time.

When does the current lease end?

The current lease ends in about 2 years.

Is there an option of renewal & what period?

Yes, for 3 years.

What is the annual escalation %?

The annual escalation is 7%.

What are the trading hours?

Monday to Friday: 8.00 am to about 4.00 pm.
No weekends.
No public holidays.

What lease deposit and/or other surety is required?

One month at R15 000.

What are the main assets of the business?

2 x Fridges, 3 x Chest Freezers, Computer Equipment, Tables, Chairs, Preparation Tables. Culinary Equipment.

Which assets are on lease/HP and with whom?

Two new motorbikes - but will be settled by the Seller on sale of the business.

Strengths?

Part of a well-known and trusted Franchise. The menu suits the office hours of its customers. It is in an established, large business park with many businesses - both very large- and medium-sized. Proven track record.

Weaknesses?

Lack of marketing - especially social media.

Opportunities?

Platters and catering market needs to be exploited and marketed better to the businesses in the business park.
Coffee needs to investigated as part of its product-line.

Threats?

None really. The business is not too adversely affected by downturns in the economy as it provides a cost effective lunch/snack solution, including delivery, to people in a business park who are gainfully employed.

What is the reason for the sale?

The owner is involved in other ventures and also has the opportunity in another venture which is will take up even more of his time.

Why is this a good business?

Excellent, simple, franchise model. Franchisor is well-established and dominates the sandwich shop market providing for corporates and smaller businesses. Very good location at entrance to a large business park. Good growth potential.