WELL-KNOWN SANDWICH BAR/BUSINESS BUFFET SUPPLIER
BETWEEN WINCHESTER & SOUTHAMPTON
78% TURNOVER FROM BUSINESS BUFFETS
FULLY EQUIPPED INC. DELIVERY VEHICLE
NEW 10 YEAR LEASE; RENT £13,500 PA
SCOPE TO GROW RETAIL TRADE
Located in central southern Hampshire in the Borough of Eastleigh, a combination of coast, countryside, quiet villages and busy towns. It stretches from Netley on the banks of Southampton Water, the historic river villages of Hamble-le-Rice, Bursledon and Botley, the developing areas of Hedge End, West End and Fair Oak. Eastleigh benefits from excellent shopping and parking facilities and the affluent suburb of Chandler's Ford which offers a mix of high-value residential properties, excellent schools and modern business parks. According to figures released by Hampshire County Council for 2018 the population of Eastleigh Borough was 131,819 reflecting the rapid but controlled expansion in residential, industrial and commercial development over recent years. It enjoys excellent communication links by road, M3 & M27, main line rail and air. Nearby Southampton International Airport attracts more than 11 airlines serving around 40 destinations, its 1.5 million passengers passing through each year have helped promote the Borough as an ideal base for companies setting up in the region. It is also ideally placed for visiting the natural outstanding beauty of the New Forest, the Isle of Wight and the Dorset coastline and the historic towns of Winchester, Salisbury and Romsey.
This popular, established business provides buffets for business clients in the Southampton/ Winchester corridor. In addition to a thriving corporate client base, turnover is supplemented by a retail sandwich bar which has a loyal following from local employees and passing trade. Enjoying a prominent corner position on a busy main road, significant passing lunchtime trade is also attracted to their popular take-away service. Buffets account for 78% of turnover, with the remainder from passing trade offering huge scope for growth. The business was originally set up locally in 1995. It outgrew its premises and moved to its current location in 2000. The business is proud to have been serving several significant "blue chip" national businesses locally for the past 25 years. There is scope to grow the business-buffet revenues of this attractive, established and well-equipped business.
(all sizes are approximate & should be considered 'nominal'.)
Location Sq Metre Sq Ft
Retail & Food Prep Area 32.5 350
Food Production Room 13 140
Kitchen 9.6 100
Conservatory 30.1 325
Total 85.2 915
The above rooms sizes are published on the VOA (Valuation Office Agency) website as part of the Business Rates Valuation process.
The business occupies the ground floor of a detached brick and tile 1930's-built property offering more than 900 sq ft (85 sq m) of net internal space. There is a dedicated, off-road parking space to the rear of the property where there are two entrances. The entire building has been fitted out with double-glazed, maintenance-free windows and doors creating a light, airy, secure and pleasantly quiet working environment. Access to the retail counter is via the front of the property via a central, maintenance-free, double-glazed casement door. A glass-fronted, 6' drinks chiller offers a comprehensive choice of canned and bottled soft drinks, fruit juices and water. Beyond the glass-fronted sandwich counter, is one of two food preparation areas fitted out with 6 stainless steel tables with shelves under. The sales area measures 17.5' x 14' (245 sq ft/24 sq m). The preparation area measures 11' x 11' (121 sq ft/12 sq m). Double, white aluminium double-glazed doors lead out to the rear of the premises and an adjacent, off-road, car parking space which makes light work of deliveries and loading. From the retail area a door leads into a kitchen and second food production area measuring 14' x 11' (154 sq ft/15.1sq m). There is a commercial oven and matching shelf racking system for cooling baked product. The shelves once cool, are designed to fit into the stainless steel 6foot refrigerator. There are two 6' stainless steel tables with shelves under, a sink and single drainer with cupboard under, a hand-wash station, wall-mounted paper towel dispenser freezer, deep-fat fryer, meat slicer, and 2 induction hobs. A large double-glazed picture window with fanlights over ensures a light and airy working environment. Opposite the kitchen is the wash-up area with a stainless-steel Butler sink with double drainer. There are floor and wall-mounted storage cupboards and work tops. There is also a dry store cupboard and staff WC. This area leads into the uPVC double-glazed conservatory. This area provides room for ready-to-go buffet platters prior to packing into cool boxes which are in turn loaded into the delivery vehicle. There are two 6foot chest freezers and the racked Conservatory also holds stocks of dry goods, canned drinks, crockery, cutlery, glass ware, disposable tablecloths, napkins and associated buffet hire equipment.
Where items of equipment and appliances are mentioned, no warranty is given or implied as to their operational condition.
There is room outside for tables in dry weather
The premises are secured on a renewable, fully repairing and insuring lease which expired in October 2019. The Landlord has confirmed that a new 10-year lease will be offered at an annual rent of £13,500 with 5-yearly rent reviews with the next review due in 2024. There is no Planning Consent provision for evening retail trading.
Please be aware that the landlord will require references to support any application as a tenant. Satisfactory bank and trade or personal references will be requested. In addition, the landlord will require a rent security deposit equal to 6 months’ rent subject to references and status of the buyer.
The rateable value of the business premises is £6,000 with zero rates payable in 2019/20.
This information has been obtained either from the current rate demand for the property, by telephone from the local authority or by reference to the VOA website. The amount payable is the standard rate for the Rateable Value shown. In some circumstances this may vary, and therefore it is recommended that potential buyers make their own enquiries through the local authority to check the applicable rateable value and whether the rates payable will be the figure quoted above.
Accounts inspected by Adams & Co for the year ended 5 April 2019 show turnover of £86,922 with Gross Profits of £51,717 (59%). This compares to sales shown on VAT returns for the 12-month trading period ending 30 September 2019 of £80,080 with estimated gross profits of £34,014 (based on an estimated gross profit margin 59%). Corporate hospitality revenues for year ended 5 April 2019 were £67,295 (78%) with retail sales of £19,627 (22%).
Year Ended 5/04/2019 30/09/2019
Sales 86,922 80,080
Gross Profits at 59% 51,717 47,247 est. 59%
Operating Expenses 34,507 34,507
(as previous year)
Net Profits 17,210 12,740 est.
Add Own Consumption 2,500 2,500
Adjusted Net Profits 19,710 15,240
Please note that if a business is VAT registered, all figures exclude VAT.
(all sizes are approximate & should be considered 'nominal'.)
There is no private accommodation included with this opportunity
We understand from the vendor that all main services are connected to the property.
Monday to Friday 08:00 to 14:00
Saturday & Sunday closed
The Vendor and his wife manage the business between them. There are no employed staff.
The vendor informs us that the value of the stock is approximately £750.
The vendors will accept £25,000 for the lease, business goodwill, fixtures, fittings and equipment, subject to inventory, plus stock at valuation.
Vendors and Buyers each to meet their own legal costs and will each be responsible for 50% of the landlord's legal costs in the preparation of a new lease.
The vendor and his wife operate the business between them with no employed staff. This has limited the growth opportunities with new corporate and retail business being declined or discouraged. The vendor is a chef and now wants to return to the Corporate sector to be free of the administrative and financial responsibilities of ownership. This has created an exciting opportunity for a hands-on owner to build on the solid foundations laid down over the past 25 years’ trading history.
Financial information will be made available to seriously interested purchasers after they have formally viewed the business.
On a busy main road between Winchester & Eastleigh
The premises are secured on a renewable, fully repairing and insuring lease which expired in October 2019. The Landlord has confirmed that a new 10-year lease will be offered at an annual rent of £13,500 with 5-yearly rent reviews with the next review due