Franchise Pizzeria And Restaurant Krugersdorp For Sale

Business description

History Background
Fully describe the business's activities? South Africa's number one Italian family restaurant. The first franchise opened its doors during 1994. Since then the chain has grown at a steady rate, and diners can now choose from more than 60 outlets throughout the country.
How long has the business been established? This outlet open 7 years ago.
How long has the owner had the business? The current owner had the business for 2 years.
What steps are in place to solve "load shedding" problems? There is a generator on standby, for the lights and paypoint. To prepare food they use wood for the pizza oven and gas for the other food.
Present Market
How does the business operate on a daily basis? During the week they operate from 10h00 to 22h00, on Saturdays from 10h00 to 23h00 and Sundays from 10h00 to 21h00.
How are the clients attracted to the business? This well known brand is situated in a very busy Mall. Some of tenants are Pick & Pay, Woolies, Nu-Metro, Clicks, Edgars, all the major Banks, CNA, etc.
What Advertising/Marketing is carried out? The Franchisor, undertakes brand support through advertisng, on TV, and local radio. The owner also places his own adverts in the local newspaper.
What competition exists? As in all modern Malls there is competition, but this is the only pizza restaurant.
Financial
Is the business VAT Registered? Yes VAT registered
What VAT documentation is on file.? Yes with the accountant.
Are there up-to-date Management Accounts available? Yes management accounts available.
What percentage of of the business is cash/credit? 60% Cash and 40% credit cards
Staffing
What is the total staff complement? 1 Manager and 8 permanent staff. All waiters are on freelance
Give a breakdown of staff/functions/length of service? 2 x Bar, 3 x Pizza, 1 x Pasta, and 1 x Griller and 1 in between. All 8 off them can work at diffrent places in the bar and kitchen.
How involved is the Owner in running the business? The owner is the chief operator
Premises
When does the current lease end? Still one year left
Is there an option of renewal & what period? There is an option to renew for a further 3 years.
What is the annual escalation %? 8% annual escalation
What are the trading hours? Weekdays from 10h00 to 22h00, on Saturdays from 10h00 to 23h00 and Sundays from 10h00 to 21h00.
What is the square meterage of the business? 220m2
Is a copy of the lease available? Yes with owner
Do you require a licence? Yes a liquor licence
Assets
Is a full asset list on file? Yes full list is available.
Are any items not included in the sale? All assets included
What is their overall condition? Very good condition, and do not need any repairing.
How have they been valued. ? By the owner
Which assets are on lease/HP and with whom? No assets on HP or lease
S.W.O.T. Analysis
Strengths? Part of very well known franchise in a busy Mall.
Reason For Sale
What is the reason for the sale? He bought a bakery in another town.
Conclusion
Why is this a good business? Very well established and part of a very strong franchise.
What is the price plus stock and the net profit? The selling prize is R1.3 million plus stock of +- R30 000

Property information

Real Estate:

Lease

Other information

Furniture / Fixtures value:

R500,000 (included in the asking price)

Inventory / Stock value:

R30,000 (included in the asking price)