THRIVING LEASEHOLD CAFÉ LONDON - PRICE REDUCTION
Price:
Leasehold - £90,000
Location:
London, Tottenham
Business Type:
Food Service Businesses
The particular highlights of the business are:
- The owner may be prepared to accept staggered payments for the business, enabling the buyer to pay from profits although a lump sum sale would be more favorably considered.
- Ideally located concern offering excellent lifestyle.
- A fully managed business.
- A well established concern.
- Good loyal clientele.
- Fully equipped business with favorable lease terms (see below).
- Turnover in excess of £124,000 with a net profit of £40,000. (See financial summary below). This is very impressive considering the credit crunch.
- A business with great potential which has not been exploited because the owner has other business interests.
- An easily run operation.
- Good loyal well trained staff.
- A good first time buyers business.
History
Phoenix Business Transfer Agents are delighted to place onto the market this thriving cafe which has been established since1940. The business has been in the hands of the current owner since 2007 and he now wishes to sell due to other business interests.
Services
This very good business opportunity provides a traditional café menu with breakfasts, lunches and dinners as well as sandwiches rolls and drinks.
Staffing
The concern employs 3 staff. One is full time and 2 are part time. The Chef who is full time is paid £300 per week and the part timers earn £100 and £150 per week each. All staff would stay on after a sale.
Owners Role
The owners’ role is to manage the business and he works part time. He has no hands on role.
Marketing
The owner does no marketing for the business.
Competition
As far as competition is concerned there are no other cafes in the area
Market
The client base consists of locals, students and passing trade. Regular clients make up 70% of turnover.
Opportunities
The concern has huge potential. In particular the turnover and profits can be increased by:
• Increasing the marketing activity with direct mailings and local and internet advertising.
• Increasing the opening hours to include evenings.
• Increasing the product line to include a more varied menu.
• Becoming more efficient with staffing levels and a more hands on owner will make more profits.
Training and Handover
The owner would be available for an extensive training and handover period for the benefit of the new owners if required. The Owner would also be happy for an on the job observation period to assess the business prior to offers being made
Financial Details
The present turnover is £124,800 per annum with a gross profit of 70% and a net profit of £54,040 including the rental income. The wages are £550 per week. The present value of the stock is £300 and the fixtures fittings and equipment are worth £10,000.
In 2008, the turnover was £124,000. The potential turnover of the business within the next 2 years is forecast to reach £170,000 given the changes that are required to be made to the business. Full financial disclosure is available on request after viewings and the signing of a confidentiality agreement.
- Situated in Tottenham Hale area of London.
- Prominent location on main arterial road
- Part of a parade of shops
- Excellent parking facilities
- Industrial estates nearby
- Area earmarked for regeneration with a further 5-10,000 students.
- Surrounded by densely populated residential area with schools and other local amenities.
- Local population consists of a very mixed community including students.
- Commercially thriving area
- Well linked with local road network being on the one way system and good railway links.
The original length of the lease was 15 years with 12 years remaining. The rent is £15,000 pa with a review in 3 years. The rates are £2,400.
Monday to Saturday: 6am to 4pm
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