Fully describe the business's activities?
The business operates as a fast-food franchise situated in a busy strip mall, offering prepared fast-food meals and related products. The business operates within a franchise model, with established systems and procedures to support the day-to-day operation.
The business is currently managed with staff in place; however, there is potential for improved performance and growth through greater hands-on involvement by the owner, particularly in areas such as staff management, customer service, stock control, marketing and overall operational oversight.
How long has the business been established?
Aproximately 2 years
How long has the owner had the business?
Since establishment
Give a breakdown between sit-down, takeaways and deliveries
60% Takeaways and 40% sit-down
How does the business operate on a daily basis?
The business operates on a manager-run basis. The manager is responsible for opening and closing the store and oversees all day-to-day operations, including staff supervision, customer service, stock control, cash handling, ordering and general operational requirements. The business is structured to operate efficiently without the owner needing to be involved in the daily running of the store.
How are the clients attracted to the business?
Clients are attracted to the business through a combination of franchisor-led marketing and local advertising. The franchisor supports the business through promotional pamphlets, social media advertising and various brand marketing initiatives. The business also benefits from local advertising, its established presence in the area and word-of-mouth referrals from existing customers.
What Advertising/Marketing is carried out?
The franchisor carries out ongoing brand advertising and promotional campaigns, including social media advertising and the distribution of promotional pamphlets. The business also undertakes local advertising within the surrounding community and benefits from word-of-mouth referrals and the established recognition of the franchise brand.
Does the business have any contract work?
None
What competition exists?
The business operates in a competitive fast-food market, with competition from other franchised and independent fast-food outlets in the surrounding area. However, the business benefits from an established franchise brand, a loyal local customer base, competitive pricing and convenient access. The business has maintained its position in the local market despite the presence of competitors.
What are the seasonal trends?
The business experiences relatively consistent trade throughout the year, with increased sales typically seen during month-end periods, public holidays and the festive season. Quieter trading may occur at certain times of the year; however, the established local customer base and demand for convenient fast food provide a steady level of business throughout the year.
Is the business VAT Registered?
Yes
What percentage of the business is cash/credit?
No credit, only cash sales
How could the profitability of the business be improved?
Profitability could be further improved through increased owner involvement in the business. A more hands-on approach could assist with tighter cost control, staff management, stock control, local marketing and identifying opportunities to increase sales. Given that the business is currently only manager-run, an active owner could potentially improve efficiencies and overall profitability.
Is Seller finance available and for what amount?
No
What is the total staff complement?
4 x Genral Kitchen Workers
1x Manager
Give a breakdown of staff/ functions/ length of service?
Manager: 2 years of service â responsible for overseeing the day-to-day operations and staff.
Kitchen Assistant:x1 year of service â assists with food preparation and general kitchen duties.
3x Kitchen Assistants Approximately 6 months of service each â assist with food preparation, cleaning and general kitchen duties.
Do any receive special perks or incentives?
No
Are they on contract?
Yes all on contract
Do any have management potential?
There are Managers in place
How involved is the Owner in running the business?
Nothing at all
When does the current lease end?
31 October 2029
Is there an option of renewal & what period?
To be negotiated
What is the annual escalation %?
6%
What are the trading hours?
10am to 8pm Monday - Sunday
What is the square meters of the business?
161 squares
Is a copy of the lease available?
Yes
Do you require a licence?
The business does have a liquor license which is renewable annually.
What lease deposit and/or other surety is required?
Two Months Deposit
What are the main assets of the business?
Equipment, signage and shop fittings
What is their overall condition?
Very Good
Do any require repairing?
No
How have they been valued ?
Second hand value
Which assets are on lease/HP and with whom?
NA
What are their settlement amounts?
NA
Will Seller settle or Buyer to take over?
NA
Are copies of agreements available?
NA
Are they presently insured?
YES
Strengths?
-Busy strip-mall location serving a large surrounding residential community.
-Attractive, modern decor with excellent overall presentation.
-Low operating overheads relative to the location.
-Fully operational business with staff and franchise systems in place.
Weaknesses?
-Smaller, lesser-known franchise brand with limited market recognition.
-Current profitability is modest.
-Limited owner involvement in the day-to-day operation.
-Competition from established fast-food brands within the same retail environment.
Opportunities?
-Strong potential for a hands-on owner to improve sales and profitability.
-Increased local marketing and brand awareness within the surrounding community.
-Opportunity to develop its own delivery service and reduce reliance on third-party platforms.
-Improved staff management and operational oversight could enhance overall performance.
Threats?
-Competition from established fast-food brands such as KFC.
-Price-sensitive customer market.
-Competition from smaller independent food outlets in the surrounding area.
-Potential for additional fast-food competitors to enter the market.
What is the reason for the sale?
Owner has other business interests.
Why is this a good business?
This business presents an interesting owner-operator opportunity for a buyer looking to acquire a fully operational fast-food business with room for growth. The business benefits from its location within a busy residential community, attractive presentation, manageable operating structure and franchise model.
The key opportunity lies with a scope to strengthen local marketing, improve operational management and develop additional delivery opportunities. The business is not being presented as a highly established national brand, but rather as an opportunity for an energetic owner to build on the existing operation and unlock its potential.
Overall, this could suit a motivated buyer who is prepared to be actively involved in the business and grow it over time.
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