Breakfast/Lunch Restaurant/Coffee Shop. Great Lease/Seller Financing
Lease expense approximately 3% of Sales
This is the restaurant/coffee shop for which you have been waiting. Revenues have increased over 10% in 2018 year to date over 2017 and should top $630,000 in food and beverage sales for the full year. If you are an existing operator looking to expand, you can't do better than an operation with a lease expense approaching less than 3% of sales! This space is 875 square feet but generates over $700 of revenue per square foot a year. A buyer new to the restaurant/coffee shop business should find the this operation and corresponding space very manageable. The low lease/occupancy expense helps generate a cash flow similar to operations with substantially more lease and overhead expense. The Owner believes there remains tremendous upside sales growth potential with the addition of online ordering and catering - both items requested by the customer base. The Owner's belief in the business is why she is willing to finance up to $30,000 of the purchase price in a first lien position.
There is also opportunity to improve margins. The labor costs are well under control at under 20% of sales (excluding the salary taken by the Owner). The food and beverage costs could be reduced through potential initiatives such as consortium purchasing or quantity purchases/discounting. An operator with an attention to cost control could see their cash flow expand considerably.
The business is open from the morning at 6:30 and closes at 4 pm in the afternoon - it is not open for dinner or weekends. You can tell by the numbers (approximately 630k of revenue and over 130k of Seller Discretionary Earnings anticipated for 2018) that this is a very popular spot which generates a great deal of traffic in an 875 square foot space.
The building is owned by the City of Jacksonville with much of the building housing city functions. There is no such thing as guaranteed customers but this ownership certainly helps given the resident customer base. The lease is simple and very favorable and is assignable/assumable. There is no personal guaranty which is great for a buyer and unusual - most commercial leases require a personal guaranty. The total lease expense is less than 18k for the 12 month lease period from April 2018 thru March 2019. The recently updated lease with the city provides for a great lease rate through 2023 with the option for 2 additional extension periods of 5 years each at the tenant's option.
This is a great opportunity for either an established operator or someone that wants to get into the food service business. The Seller is willing to assist with a transition and is motivated to sell. The injury from the car wreck has made it painful to continue - she needs to move on.
All interested buyers must complete and submit a non-disclosure agreement (NDA) to receive an initial financial package which includes the 2017 tax return and recast cash flow which outlines actual Seller Discretionary Earnings. Other documentation in the initial package includes a prime cost (labor and food/beverage} analysis as well as the lease documentation. A copy of a government issued photo id matching the name of the buyer on the NDA must be submitted with the signed NDA. The response to the listing includes several qualification questions that must be answered. Should a buyer progress and request to take advantage of owner financing, a credit application and credit check are required.
This opportunity won't last long.
About the Business
Contact the Seller
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Restaurant for breakfast and lunch and all day coffee shop on 1st floor in Jacksonville downtown high rise. The Seller/Owner spent 174k on leasehold improvements to completely renovate this space and they own all the improvements down to the flooring. This is absolutely the best lease you can find. All utilities are included in the base rent expense which brings total occupancy cost (utilities, base rent, sales tax on rent) to less than 5% of sales. If you have a restaurant/coffee shop with this type of lease expense, you can make some cash flow. The lease has one more year remaining with an option for another 5 year term.
There were two other restaurants in the same building but one could not compete and closed many months ago leaving just one. This building is owned by the city and houses a number of city departments which provide an excellent source of customers. It is a prime downtown location which draws customers not only from the building itself but from surrounding buildings and businesses.
Growth & Expansion:
The Owner has developed plans to provide online ordering as well as exploring the opportunity for catering but is unable to implement those plans currently with the discomfort from the accident. The Owner projects that the combination of online ordering and the implementation of catering options could provide an increase of 20% in sales the first year. The building owner (the city) has asked the Owner to take the additional vacant space left by the closed restaurant but the Owner has declined. The current sales volume, cash flow and low lease/occupancy cost is what the current Owner wants.
About the Sale
- Reason For Selling:
Seller had a serious car accident injuring her back and needs to retire.
The Seller will provide 2 weeks of onsite training on Point of Sale operation (POS), purchasing, etc., at no additional expense.
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