Connecticut Restaurants Business For Sale 26654

Restaurants Businesses For Sale
3401 Evanston Ave. N. Ste. A
Seattle, WA 98103

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Category: Restaurants SIC:
Detail: N/A Price: $74,900
County: Down: $40,000
State/Prov.: CT Adj Net: $96,000
Country: USA Sales: $316,800
Relocatable No Home based No Franchise No Lender pre-qualified No
This 1,588 s.f. Deli been operating by the family for over 24 years. The Deli has 18 seats, 6 tables and 4 stools. It serves breakfast & lunch, does catering and delivers.

The Owner doesn?t work in the Deli (absentee operation). His cook been with him for over 19 years.

The menu is attached. It is diverse and looks delicious. Prices from the grill range from $5.00 to $8.95. Sandwiches run from $6.75 to $8.95. Wraps from $6.00 to $6.75. They use Boars Heads products.

If you look at the attached demographics, you?ll note the population is greater than what it seems. The Deli is close to a big repair garage and the Danbury Hospital.

Total day time population is greater than the residential population possibly signifying that a lot of people work in this area. For example, in a 1, 3 and 5- mile radius from the store there are 782 businesses within 1 mile, 5,353 within a 3-mile radius and 8,014 businesses within a 5 mile radius. There are 9,485, employees within a 1-mile radius, 50,161 within 3 miles and 78,873 employees within 5 miles. Total residential population within 1 mile is 11,460, 78,713 in 3 miles and 121,532 within 5 miles of the Deli. It appears there is a lot of business around for all the Deli?s and food establishments in the area.

The equipment is in excellent condition. It has been well maintained and cleaned every day. Original investment in assets was +/- $50,000.

I think a Deli should have the Owner working there every day, because if you do, sales will undoubtedly increase just because you do. If you don?t however, the Owner has been running the Deli as absentee and you can too. It?s possible because the cook has been here over 19 years. You?ll be starting with a well-trained crew should you make the decision to purchase this business.

Looking at the attached graph notice that sales have increased every year from 2016. How many businesses can boast that accomplishment lately?

This being a Deli and one that?s run absentee, bookkeeping is always difficult to get posted accurately. However, after observing what?s going on and the business that is available, you should be able to agree with the numbers shown on the graph?s Working Owner projection.

Note?when an acceptable Offer is received, the Buyer will have plenty of time to review Tax Returns and other documents as well as observe the current traffic available at the business.

A little more history you need to know?

The center was recently sold. The new landlord has and is making some improvements. For example, he has redone common areas, painted and paved the parking lot. One more thing, in the paving process, the contractor broke or caused a septic line feeding the second floor to overflow and run down the walls of the Deli. The Deli is going to get new paint, sheetrock and new floors. (PS if you buy quick enough, you can suggest the colors you want). In any event, this is going to affect sales.

What was going to be a banner year is going to just be average because of the opening and closing for all the work that has/will be been done. This is why the Deli is selling for such a low ratio of Price/sales (23.4% vs the industries standard of 40% to 50% of sales). Someone will be getting a good price and with marketing, advertising & promotion, sales will rebound and hopefully continue to increase.

Hours of operation are: Monday ? Saturday 7:00 to 3, Sunday closed. This is a 6-day, 48-hour operation. Currently there is 1 full timer and 3-part timers working a total of 119.25 hours.

If a working Owner purchases the business it would mean if you work 40 hours and use 1 full timer and 3 part time paid workers working only 88 hours per week, labor expense would decrease from $88,608 (+ taxes) to $69,108 (+ taxes), a 22.0% decrease. Of course, the savings would go to Owner?s Cash Flow that would be used for more Owner?s salary, debt service and ROI. Details in the attachments.

So, adjusted gross for a working owner is estimated to be +/- $316,797 with a Net of +/- $96,238. This assumes the Owner is working 40 hrs, so labor is less. This calculation also includes the new rent at $19.00 psf.

These numbers and calculations should be reviewed by you with the Owner and/or your advisor. Do your own budget and proforma so you know what has to be done to be successful and obtain the Cash Flow you want.

You will need to negotiate a new lease with the Landlord. Basically, you will be getting the same lease that the owner will get should he decide to extend his lease when it expires.

Monthly rent will be $2,514.33 ($19.00 psf) plus the nets (NNN). He will give you an initial term of 5 years with possible additional options. Rent will increase 3% per year You will pay your share of all the expenses detailed in your lease usually by the ratio of the square feet of your store to the total square feet of the center. This is called the nets or the triple nets (NNN) or modified nets. Water and sewer charges will begin when the Landlord installs a sub meter so you will only pay for what your business uses. All other expenses will be Pro-Rated as described above. Note, during your discussions with the Landlord he will tell you what the nets are. Other terms you will negotiate with the Landlord or his representative.

If qualified & with security Owner financing is possible. The Owner will consider financing with 30% - 50% down with the balance financed over 2-4 years at +/- 7.5% interest.

Interested buyers MUST sign our Confidentiality Agreement and fill out the Questionnaire before any additional information is received or a meeting is scheduled to view the business, or the location disclosed. Forms are available at this Listing, on our website, (from the link in front of the pictures) or can be e-Mailed to you upon request. Detailed financial information showing ability to purchase and proof of funds may be required before a meeting or conference call is scheduled.

A/R: Real Estate: $
Inventory: $4,000.00 Other Assets: N/A
FF&E: $50,000.00 Total Assets: N/A
Leasehold: $ Included: N/A

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