Business Highlights:
* Cash business with exceptional cash flow. This is a turnkey opportunity for an experienced restaurateur.
* Established family-style Italian restaurant located on a well-traveled thoroughfare with plenty of parking.
* Restaurant configured for substantial event/party business.
* The revenue can be grown by adding lunch hours and pizza to the menu. The connections and hood are already installed and operational for baking pizzas.
* Recent review awarded the restaurant Three ??? Stars.
* Seller willing to provide partial financing to facilitate sale.
Summary Description:
The Business
The total restaurant is 3,200 square feet. The dining area consists of two rooms: The main dining room (approximately 1,500 square feet) seats comfortably about 80; and a separate dining room (also approximately 1,500 square feet) also seats about 80, which can be used for private parties or as additional restaurant seating during peak periods. Both rooms can be subdivided for smaller parties of 40 or 50 on each side of the division. In a crunch, using "tight seating," the restaurant has hosted 225 people.
Current staffing is twelve: Five full-time and seven part-time.
The restaurant operates six days per week (closed Monday’s), as follows:
Tuesday, Wednesday, and Thursday from 4:00 PM - 9:00 PM;
Friday and Saturday from 4:00 PM - 10:00 PM; and
Sunday from 1:00 PM - 9:00 PM.
As the restaurant is closed for lunch, this is an expansion opportunity.
The restaurant operates "family style" with large, two person portions. Pizza is not served, but the restaurant is equipped with the connections and hood for a pizza oven, providing yet another expansion opportunity for a buyer.
All health and sanitation certificates and requirements are in place and current.
Trends
The customer base is mostly local with 60% to 70% being repeat customers. Although some minimal advertising is done, most new business is generated via word-of-mouth. Credit card sales are 70% to 80% of total revenue.
Annual sales have been $556.2M for 2005; $586.6M for 2004; and $647.2M for 2003. According to the owner, sales for 2006 are expect to approximate $598.M. The declining sales trend (2003-2005) is a function of heavy promotion from some new nationally franchised family restaurants in the area. The principal effect of this increased competition is in the weekday trade; weekend business has not been affected.
Experience Required
This is an opportunity for an experienced restaurant person. The owner will spend time with qualified perspective purchasers detailing the financial and operational aspects of this business. This is important to have a complete understanding of this opportunity.
Facility
The restaurant is in a leased facility with the lease expiring August 31, 2011. There is no current renewal option since the lease is currently in the first months of a five year renewal. The current base rent is $4,700 per month, with 5% incremental increases effective September 1st of 2007 and 2009. The lease does contain a minimum time of the restaurant being open (six days a week and six hours per day).
Assets Included
Included in the sale are the: Name, telephone number, website, all furniture, fixtures, kitchen and other equipment, and leasehold improvement, except as noted below, which the seller estimates as having a replacement value of $175M. Not included in the sale is the leased POS/cash register system, although the lease can be transferred; and a leased dishwasher, which can be re-leased.
Financing
The seller is willing, depending on the overall terms of sale, to finance a perspective buyer up to $250M-275M on terms (length, interest rate, guarantees, etc.) to be negotiated. The seller will agree not to operate a restaurant within twenty (20) miles of the restaurant being sold or in Monmouth County for a negotiated period of time. |
