BIG Sports Bar W/Hard Liquor + Real Estate + Income Property

​ABOUT THE RESTAURANT:  Located in Beautiful Southwestern Michigan, just a stones throw from Lake Michigan, this Family Restaurant and Sports Bar is an icon in the town, with a long history of success!  The owners treat this restaurant like their home.  It's immaculate, well maintained, very clean and in excellent condition. Constant improvement is just what they do.

This broker spent 4 days visiting this business, getting to know the owners, customers and employees.  The owners, husband and wife, help in the front of the house as well as the back office. The employees are well trained as well as treated well by the owners and it shows in their performance...25% labor costs.  The employees are always hustling and serving customers with a smile. And the customers are loyal, happy and fun, with this restaurant and bar serving as a local hang-out!  Just visit the store and you’ll see and hear the humming of people all around you.

THE FACILITY: Between the other income generating business and the restaurant, there are about 10,450 Sq. Ft. of building space with the restaurant taking approximately 7,000 Sq. Ft. The buyer should verify these figures before purchasing. 

OPPORTUNITIES: The major opportunity lies with opening more shifts.  The restaurant is only open 8 shifts out of possible 21 per week, closing on Sundays - big sports day and this is a sports bar!  There are 6 dinners and 2 lunches per week.  Missing the Sunday Football and sports season plus Sunday brunch is a huge opportunity with sales likely approaching the $8,000-$10,000 per Sunday. That's another roughly $500,000 in annual revenue upside.  

Cost of Sales is another opportunity. 2018 Cost of Sales was nearly 38%, well above industry standard, particularly given alcohol generates about 30% of sale. Drive these costs down to industry standard and there's another $200,000+ cash. 

OTHER INCOME GENERATING PROPERTY: The restaurant consumes most of the owner’s time, which means the other income generating property doesn't get the attention it needs to explode.  They don’t use Internet marketing or joining service websites.  In 2018 this business generated $29,000, in 2017 it generated $37,000 and in 2016 $47,000. This business ought to generate several hundred thousand dollars a year.  Grow this business by negotiating deals with online service companies that can drive-traffic to this business or even hire a management company. 

BY THE NUMBERS: Sales increased 8% between 2016 and 2017 and 7% between 2017 with 2018 with 2019 on track to be about the same as 2018. In 2018 sales were $2,074,000 with working owner cash flow of $478,000 and EBITDA of about $422,000. These numbers are on tax returns. 

SBA LOAN: This business is qualified for an SBA loan to a qualified buyer. The buyer must have good credit with a FICO score over 700, about 20% down, at least 5 years of restaurant management experience, and proven track record of success with a personal balance sheet supporting success. 

LOAN PAYMENTS: Loan payments with roughly 15% down on the real estate and 20% down on the business yields a monthly payment of $17,381 or $208,000, leaving the owner with $270,000 a year of income.  Business loan is 10-year amortization and real estate loan is 25-year amortization. 

NAME AND RECIPES: These are included in the sale. 

REASON FOR SELLING: After spending his whole life working at this business, the owner is retiring!

Demographics

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