Fully describe the business's activities?
* This is the best and foremost sports pub in the Northern Cape.
Feathering a bar with a large variety of liquor and seating for customers at the bar counter. Own bathrooms for
male and female.
* A separate area with 20 Crazy-Slots gambling machines with own bathrooms for male and female.
* Additionally there are seating available in the dancing area.
* More activities like darts, 3 pool tables and a foozeball table.
* The business is located in the main street with ample parking.
How long has the owner had the business?
Since 30 April 2014
How does the business operate on a daily basis?
The management team open the business at 8h30
Staff are cleaning / stocktaking / balancing financials
Staff responsible for the Slots are loading the machines and manage the winnings and takings
Cash are loaded into the mini ATM on site
Doors to the public is opening at 10 am
The bar is served by a team of 3 or 5 working in 2 shifts
On Thursdays / Friday / Saturday the business is charging door fees (cash income )
The reason is for access control and to ensure a hi level of service , safety and enjoyment for guests
The business closes doors at 2h30
Security is on hand when staff are ending the shift
How are the clients attracted to the business?
This business is a landmark "" get together place "" in the area
Clients ( patronages ) enjoys the pleasant vibe at the bar and the opportunity to relax and gamble in a safe environment
Does the business have any contract work?
The business does not have any contract work - but the Business is the preferred bar to cater at functions like at festivals , functions , sporting events and parties
What competition exists?
There are 2 alternative bars in town - catering for a different market
None is known for such good house rules & alternative activities like dancing and gambling
What are the seasonal trends?
This bar is not influenced by any seasonal trends
Does the bar offer Restaurant food ?
Food can be ordered at the Bar from a menu from the neighboring restaurant
Waiters will serve the take-a-way meals to patronages within the Bar area
Snacks are available over the Bar counter
Is the business VAT Registered?
The holding company is VAT registered - and comply with all SARS requirements
Are there up-to-date Management Accounts available?
The business uses Odyssey Software - up to date info is available
What Balance Sheet and Income Statements are available?
This business is part of a holding company
Financial statements are available - and accurate management accounts are kept
What percentage of the business is cash/credit?
The business operate on a "'cash-only "" basis
Is Seller finance available and for what amount?
The seller will not offer any finance
It is important to take note of the benefits of buying the shares in the holding company .
The holding PTY also owns a commercial building in the main street of town - encompassing 10 x bachelor flats and 2 x retails shops - there is an additional liquor and gambling license registered on this second premise
- separate listing
What is the total staff complement?
The total staff complement is 10
Give a breakdown of staff/ functions/ length of service?
3 x Security
1 x Cleaner
3 x Bar area
2 x Gambling area
1 x Multi task
Some tasks are rotated between staff
Are they on contract?
yes
Do any have management potential?
There are 4 staff members that are taking up management responsibilities on an ad-hoc basis
Security / Bar / Gambling / Admin
This staff members are receiving bonusses as / when applicable
How involved is the Owner in running the business?
The owner oversee the running of the business -- although not full time involved
Management available ensure a degree of flexibility
When does the current lease end?
The business has a very good relationship with the landlord
The current lease is still valid for 10 years
What is the annual escalation %?
The current escalation is 8% - but with the extended lease term , this will be negotiable
What is the square meters of the business?
a Total of 325 m2
Is a copy of the lease available?
A copy of the lease will be available
Do you require a licence?
The holding company has 4 applicable licenses in place -
* The bar and launch is holding liquor and gambling licenses
* The commercial building in the main street is also holding a liquor and gambling license
( sold separately )
This licenses are currently registered in the name of the holding company / seller / location and need to be transferred . In the event of a sale - the seller will help the new owner to operate under this licenses until the transfers are completed
What lease deposit and/or other surety is required?
The landlord will require a deposit equal to one month's lease
What are the main assets of the business?
The bar is fully equipped - seating provided for between 50 and 60 people in different areas
Fridges and certain equipment are on a loan basis from liquor suppliers
Sound system and disco lights
There is a water tank in the building as backup as well as a generator
The Slots are owned and managed by agreement with an 3rd party
What is their overall condition?
All the assets are is a good conditions and the new owner would not have any expenses over the short term
How have they been valued ?
An asset list will be available at the due diligence phase
Which assets are on lease/HP and with whom?
The Slots are leased form a 3rd party - copies of the lease and profit sharing agreements are available
Will Seller settle or Buyer to take over?
It is expected that the buyer will continue with current service agreements in the name of the holding company
Strengths?
This bar is well established , with a good reputation and a loyal customer base
Friends enjoy the atmosphere , the drinks , music , dancing , games and to try their luck at the Slots
Food can be ordered from a menu , and be delivered by the waiters from the restaurant next door
Door fees / Slots / Pool tables and games ensure a good cash inflow
Socioeconomic challenges has a lesser effect in this industry
Weaknesses?
This is a business where effective control measures are essential
Opportunities?
Effective marketing can even further elevate the profile of the Bar as an upper-class establishment
Catering as a cash Bar at functions and events is an additional & profitable income opportunity
Interested buyers should consider the commercial building too - rental income / liquor & gambling licenses / earmarked as a Pizza Lounge with cocktail bar and V-Slots ( sold separately )
Threats?
No mayor threats were identified -- strict rules within is important to maintain order and the high standard
What is the reason for the sale?
The seller is relocating
Why is this a good business?
This is a sough after business - well established , loyal client base and a diverse income stream
Please take note of the following :
Proof of funds is a specific requirement as set out in the mandate with the seller
Aldes reserve the right not to engage with buyers without proof of funding
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