100% Absentee: Amazing Location - Big Profits - 2 Bars - Huge Patio

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OVERVIEW: Without question, this is THE hottest location in this university town and perhaps within the whole Sacramento region. Locations like these are usually available only to chains and high profile restaurant owners.  This is a space that could produce greater than $4 million a year in sales. 

THE RESTAURANT & BAR: This prime, AAA location has a type 47 liquor license serving three areas. The first is a main dining room and bar area seating for approximately 110 guests and features a horseshoe bar with granite counter-tops. There is a second bar that has TREMENDOUS potential as a stand-alone concept due to the fact it has its own entrance as well as “period” architectural character. In addition, it can easily be serviced from one of the three existing kitchen production areas. And finally, there is an AMAZING – highly visible 5,000 sq foot patio with LARGE mature trees and accommodates approximately 150 people.

There is a patio area that’s about 5,000 Sq. Ft. with seating for 150 while the inside (excluding the second bar area) seats about 110.

KITCHEN: There are three parts to the kitchen. The first is a stone-oven and salad prep area.  The second is the main and primary hood system of approximately 30’ and the third is another 30’ hood system that is located just behind the main hood.

THE NUMBERS: 2017 Revenues were nearly $2.6 million with adjusted owner cash flow of $296k.  2017 Food Costs 28.3% and Labor costs 33% with rent factor of 8.1%. 2018 looks like sales will be about $2.9 million.  These are directly from tax returns. 

SBA LOAN: This business will qualify for an SBA loan but for the 6-year lease. Landlord is NOT willing to give an option at this point. But sales in 2018 as of August were up 10% over 2017.  With 2018 profit, this is priced at less than two times earnings. 

LEASE: The current lease has 6 years remaining. It is assumable but as mentioned above, an SBA loan would not be available with a lease term of only 6 years. You are purchasing the lease "as is" with no extension, unless of course after 7 years, the landlord likes you enough to extend the lease. But your payback is less than two years given the 2018 results. 

QUALIFICATIONS: You’ll need extensive restaurant experience, great credit and plenty of operating cash on hand after the acquisition.  At these revenue levels you'll be doing great!

Demographics

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