Aldes Lowveld Business Brokers

Summary

In a class of its own. This exquisite restaurant filled with elegance and encompassing ambiance, conference facility, cigar bar and collector's wines is a noteworthy adversary in fine dining.

1. History Background

Fully describe the business's activities?

Restaurant - French cuisine with a contemporary twist/ wine : 114 Listed

How long has the business been established?

Since 1 May 2010 when Mall opened.

How long has the owner had the business?

Owners first started in 2007 then relocated the business to a busy mall in 2010

2. Present Market

How does the business operate on a daily basis?

An average 60% occupation for lunch 70% occupation for dinner and 10% for breakfast opens at 09:00 cleaning begins, food preparations for day are done ' tables are set and ordering of stock needed ,bookings are taken and the day begins.

How are the clients attracted to the business?

Located at the entrance of a busy mall with plenty foot traffic, and there is a tremendous amount of goodwill as the owner is a well renown chef and has built a respected reputation in the restaurant industry.

What Advertising/Marketing is carried out?

Word of mouth is our best advertising. Our web site and regular activity mails to our database.

Does the business have any contract work?

No contracts. But well known for outside catering.

What competition exists?

4 Other restaurants in the same mall All have their own specific style of cuisine

What are the seasonal trends?

No pattern - trade has been equally predictable and unpredictable.

3. Financial

Is the business VAT Registered?

Yes.

What VAT documentation is on file?

All.

Are there up-to-date Management Accounts available?

Yes.

What Balance Sheet and Income Statements are available?

For year end Feb. 2011.

What percentage of the business is cash/credit?

95% cash and 5% credit.

What is the age analysis of the debtors book?

30 Days.

How could the profitability of the business be improved?

More intensive stock and cost control.

Is Seller finance available and for what amount?

No.

What is the payback period?

N/A.

What is the ROI?

4. Staffing

What is the total staff complement?

45 Staff members

Give a breakdown of staff/functions/length of service?

Permanent waiter x 12. Weekend waiter x 3. Waiter assistants x 2. Bar men x 3. Full time managers x 2. Evening host x 1. Owner x 1. Head chef x 1. Sous chef x 2. Jnr. sous chef x 2. Griller x 3. Chef de part ie x 5. Commis chef x 2. Pastry Chef x 2 and Sculler x 4 .

Do any receive special perks or incentives?

Occasionally , ie commission on sales and selected items.

Are they on contract?

Yes.

Do any have management potential?

Yes.

How involved is the Owner in running the business?

100%.

5. Premises

When does the current lease end?

April 2015.

Is there an option of renewal & what period?

Yes, 5 years. ( Negotiable )

What is the annual escalation %?

7%.

What are the trading hours?

7 Days a week: Monday to Thursday 11:00 to 21:00 Fridays 11:00 to 22:00 Saturdays 09:00 to 22:00 Sundays and Holidays 10:00 to 15:00

What is the square meters of the business?

249 sqm.

Is a copy of the lease available?

Yes.

Do you require a licence?

Yes, a liquor licence.

What lease deposit and/or other surety is required?

1 Month rent as deposit and 1 month rent up front.

6. Assets

Is a full asset list on file?

Yes.

Are any items not included in the sale?

Small personal belongings.

What is their overall condition?

Excellent condition.

Do any require repairing?

No, we have maintained and serviced as was needed.

How have they been valued ?

Depreciated value.

Which assets are on lease/HP and with whom?

None, except for monthly p.o.s system licenses.

What are their settlement amounts?

N/A.

Will Seller settle or Buyer to take over?

Negotiable.

Are copies of agreements available?

N/A

Are they presently insured?

Yes.

7. S.W.O.T. Analysis

Strengths?

Situated in a busy mall. Conference facility fine dinning an established restaurant well known locally and as far as JHB. and CPT. well trained staff, has outside catering

Weaknesses?

None.

Opportunities?

Can grow even by more active advertising and more corporate conferencing in the facility.

Threats?

None perceived at this point in time.

8. Reason For Sale

What is the reason for the sale?

Family obligations: Have 2 small kids.

9. Conclusion

Why is this a good business?

Well established business in the Lowveld, conferencing and private dining and has outside catering.

What is the price plus stock and the net profit?