"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
This is a mostly a self-service business (no other food business in the area works this way) where only a small portion of the orders are prepared on demand, which is very time consuming, the biggest seller is self-service. Food is prepared beforehand, put out for sale and the customer selects, pays and leaves. quick turnaround.
They have a small but profitable menu so they don't have having hundreds of products that can expire.
The business is quite self-sufficient as it has its own backup power and water to keep things running when there is load shedding and water problems.
How long has the business been established?
Since 1993
How long has the owner had the business?
30 Years
Give a breakdown between sit-down, takeaways and deliveries
They have a sit in "eating area" that can accommodate 42 people, but a lot of people buy take-away such as truck drivers, taxis and people working in the area.
They don't offer delivery because at month end, they are too busy to have staff run around with small orders.
How does the business operate on a daily basis?
Business relies on the locals who frequently visit the business and who are repeat customers. The business has been on this premises for 30 years and is well known.The customers drive to us as far as Soweto , Krugersdorp , Roodepoort and even Carltonville to buy our Chicken due to our unique spices.
How are the clients attracted to the business?
Word of mouth is the only method used, when they opened 30 years ago, a few adverts were handed out, but since then he Chicken sells itself as they only use the best quality fresh chicken, A-grade potatoes and sunflower oil.
What Advertising/Marketing is carried out?
None whatsoever
Does the business have any contract work?
Full time employees only
What competition exists?
There are other fast-food places, but this business has its own recipe and no other chicken take-away has the same taste. The business model is also unique and will be discussed with serious buyers.
They are the only business left in town after 30 years and is currently one of the oldest take-away that exist as all others has closed down.
What are the seasonal trends?
Sales are quite stable to all seasons as they have been trading for so many years.
Is the business VAT Registered?
Yes
What VAT documentation is on file?
What ever is requested will be made available as all documents are kept by the Bookkeepers
Are there up-to-date Management Accounts available?
Yes
What percentage of the business is cash/credit?
All sales are cash or card, no sales are on credit since it is a fast food business.
How could the profitability of the business be improved?
Longer hours as we keep to a 45-hour work week,
New products ie: chicken burgers, pies, sandwiches, it all depends on which market you plan on taking in next.
Is Seller finance available and for what amount?
No
What is the total staff complement?
4
Give a breakdown of staff/ functions/ length of service?
2 kitchen hands does everything from cutting chicken to cooking and cleaning. Been employed since 2010.
The newest person (around 4 years' service) doesn't cook chicken, only started to learn now in Aug 2023.
1 employee can cook everything, but doesn't cut the chicken, and she can run all ovens on her own
Do any receive special perks or incentives?
No all salaries are equal
Are they on contract?
All are full time employees
Do any have management potential?
1 employee can assist at the counter but not manage or run the business
How involved is the Owner in running the business?
Owner is full time involved , as you will decide on quantity of ovens per day.
When does the current lease end?
The lease is month-to-month. The business has been in the same location for the last 30 years.
Is there an option of renewal & what period?
Landlord will sign a new lease with the buyer
What are the trading hours?
Monday to Friday 8h00 to 5h00
Saturday 8h00 to 2h00
If business allow we will be open later on a Saturday
What is the square meters of the business?
+- 180 square metres with space available to expand or do a different lay-out
Do you require a licence?
You do need a once off business license at the municipality
If name change is done a new health license must be applied for
Fire dept gas license, current one expires in Nov 2024
What lease deposit and/or other surety is required?
To be discussed with landlord
What are the main assets of the business?
Chicken rotisserie ovens, gas chip ovens, large boiling table and generator to run whole business and water tank to keep everything clean
Are any items not included in the sale?
Owner's personal laptop
What is their overall condition?
Mostly Fair
Do any require repairing?
Currently all are running and repairs do come up where oven IR lights must be replaced if blown (about 10 a year)
How have they been valued ?
At around 40 %
Which assets are on lease/HP and with whom?
None
Are they presently insured?
No
Strengths?
Well known.
Long standing
Unique recipes
Unique ordering process
Bulk of the food is pre-prepared so planning can happen beforehand
Focuses on lower LSM's
Located close to customers
Weaknesses?
Located in the CBD but ideal for customers
Opportunities?
Expand the menu
Different lay-out of the business
Longer hours
Threats?
Worsen economy as clientele are price sensitive
What is the reason for the sale?
Owner retiring
Why is this a good business?
This shop has been profitable for 30 years and will continue to be so if owner managed and operated and the winning recipe expanded on
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Annual Turnover Amount between R 500 thousand and R 6 million
