Are you looking for a business that runs itself and is absentee operated? Are you looking for a business where during a recession the revenues go up and not down because the menu and price points are what consumers flock to when money is tight? And most important, are you looking for a profitable well established business with a history of great top-line growth and two years of strong profit? If so, then look no further then this business.
This is one of those rare opportunities to purchase a successful Mexican restaurant with a full liquor license (type 47 Placer County have been known to recently sell for over 100,000 alone) in the very highly desirable Roseville market place where good Mexican restaurants are rare with a limited supply of them.
And if that's not enough to make you want this business here are some more points: (1) it has a fantastic lease - over 5,400 Sq. Ft. with an all-in rent including CAM of about 2.02 Sq. Ft. (2) it is located in the heart of Roseville's major restaurant area, (3) there is a large enclosed garden patio included in the Sq. Ft. giving this restaurant the spirit of a Mexican Hacienda with running water, (4) the lease has more than 11 years remaining on it at the current fantastic low rent, (5) the restaurant has solid earns of 250,000 for 2009 and 180,000 for 2010 from tax returns with good revenue stability despite the recent hard economic times (6) it has AMAZING street visability with 10's of thousand of cars driving by each day, and finally (7) it has a rare and expensive Placer County liquor licenses.
So if you know Mexican restaurants, then there is nothing but upside with this deal and it won't last at this price - oh, and you won't find one like it in all of Placer County either. The restaurant is 100% absentee operated with no owners working at the restaurant. Statistically a working owner increases sales over an absentee operated business and a working owner will also manage costs better than an absentee owner. Nevertheless, this restaurant is only selling for 2 times 2009 owner's cash flow and 2.7 times 2010 cash flow plus the cost of the liquor license.
We can do an SBA loan for this deal if the buyer has 5 years restaurant management experience, 20% down and good credit.
Here's the math: at a sales price of 600,000, 20% down is 120,000. The bank will fund working capital of about 50,000 or more. So the true out of pocket is 70,000 for the buyer. The annual principal and interest (debt service) payments on debt of 530,000 is less than 90,000, leaving you with 90,000 net annually using 2010 numbers! You've gotta love the SBA on this deal! And in 10 years, you'll own the whole business out-right!
There is seating for 174 customers and a full bar area where people can sit and have a drink before dinner. The kitchen has two sides so handling volume is no problem. There is a combination of booth seating as well as table seating.
This is a wonderful opportunity for that general manager who has been saving up to buy a restaurant or for a family wanting to get a well run Mexican restaurant that only needs the attention a working owner can give it. Of course, if you're a chain restaurant or if you're simply looking to add a great restaurant to your portfolio, then take a look at this deal.
The owners own many restaurants in the Sacramento area and this is frankly one of their jewels they're letting go and for those who know me, you know I speak the truth.
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