Business For Sale. Restaurant - Gauteng (gp)

This franchise 180 seater restaurant was established in March 2009 and located in an very upmarket large shopping mall. The mall is now three years old and has a very unique and attractive layout. Support from the National Franchisor is excellent and highly recommended.
They allow the franchisees a less rigid approach with menus which has proven to increase the spend per head and for creativity .
The interior and layout is excellent and a bonus awaits diners with different bands playing three nights a week.
Market is regular shoppers and visitors to this popular shopping mall but definitely continue to attract customers from further afield due to it's unique layout.
Actual monthly turnover for the financial period ending February 2010 was R442k with a gross profit of 49.5% and average expenses R163k with a net profit (EBITDA - earnings before interest , tax and depreciation) of R56k per month.
This results in an ROI of 19.2% compared to the asking price.
However it must be borne in mind that this was achieved in the first year of trading in the height of the recession that started March 2009.
Value of Fixed Assets at fair value is very high at R4,200m taking into account it is nearly still brand new.
Stock on average is R98 000.
A secured loan (via a notarial bond on assets) from the bank of +- R1.100m out of the proceeds will not not be settled by the Seller.
Taking into account that the business is nearly brand new is the monthly profit (EBITDA) achieved of R56,000 considered fair taking into account the start of the business was in the height of the recession.
Position is excellent with a very high asset base . Profitability will definitely improve with time.
The restaurant has possibilities for expansion.
Approved plans are in place for a deck and a mezzanine level which will increase it to a 350 seater restaurant.