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Ref. number: 0325

Profitable pizza restaurant with a well know brand name

Successful pizza restaurant with well organized business

Offer type: Business for sale
Location: Sofia
Business category: , pizza , pizza-restaurant , restaurant
Price: 420 000 €

Summary:

This particular restaurant is part of a larger chain of restaurants with a well-known brand and a great number of regular customers.

Business Description:

The pizza restaurant is situated on the main shopping street in one of the best developed southern districts of the city of Sofia and part of a completely built up zone with densely populated blocks of flats. The pizza restaurant has been open for more than 15 years and comes with an excellent and easily recognizable brand, not only in the neighborhood, but across the capital city. It works with, and relies on, a constant clientele and relatively constant turnover and income. This enables relatively straightforward predictions and future planning concerning the business.

The sale of this winning pizza restaurant includes:
• Ownership of the restaurant with an unfolded area of about 180 sq.m, consisting of dining hall with 72 seats, outdoor covered seating area with 35 seats, a kitchen and storerooms, toilets. Located on a main commercial street in the neighborhood, which ensures a steady stream of customers;
• Professional restaurant equipment - full list, required for the normal operation of the establishment;
• Furniture and decorations of the restaurant;
• Rights over the usage of the trade mark;

The restaurant is fully organized and works efficiently and independently under the guidance of a respected manager. The entire team of the restaurant along with manager could stay and work in the restaurant. Thus the new owner will need only to the control and supervise the staff without having to deal with operational work.

The calculations show that the profit rate before taxes ranges between 18 and 22% depending on the season. The realized gross margin is about 340%. The restaurant generates a monthly profit before applying taxes of around 5 000 - 6 000 Euro during the first six months of 2010, reflecting the potential of the business during the crisis because the previous years 2007 and 2008 were more profitable and have made significant profit. The real decline in the profit during the crisis is about 30%, which is relatively well compared to most places in the restaurant industry in Sofia. Various measures have been taken to optimize and increase the business efficiency and to stimulate the sales by lowering the prices in the menu. As a result of these actions which had a good effect, the business continues to generate profit and the sales turnover is constant during all six months of 2010. The monthly cost of the restaurant are about 27 000 Euro.

The current owners who have developed the business from scratch more than 15 years ago, offer several options for its sale:
• Sale withlease back scheme to the old owner: under this option, the previous owners sell the whole business to a new owner and then rent it back for a period of eight years with guaranteed monthly rent of BGN 5000. All costs associated with the restaurant are borne by the tenant (the previous owner). Under this option, the selling price of the restaurant is 420,000 Euros.
• Sell without lease back: with this option, the previous owner withdraws completely from the business and the new owner manages its own restaurant. In this case the selling price is 500,000 Euros.

The restaurant does not require urgent investments or major changes in the equipment and the interior. It can continue to work a few more years in the state, where the depreciable kitchen equipment are replaced promptly.
The investment in this business is very profitable, because the restaurant realizes more than 10% annual return on investment, has developed an excellent business base, and an imposed and recognizable trademark, working with a well-organized team.
The owners are willing to negotiate for the sale of the entire chain of restaurants and are willing to consider other proposals by the potential buyer or investor.

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