Traverse City Area Restaurant For Sale

Dated: February 9 2021

Views: 192

Sales Memorandum

Proprietor's name(s)

Marketed exclusively by Cygnus Real Estate

Contact details

Carole Higgins (Broker)
carole.higgins@cygnusrealestate.com
2316332577 / 2319943556

Summary

Business main location

Traverse City

Michigan

United States

What the business does

Charming family restaurant in business for over 20 years is well-loved by the community and the tourists alike. It is located on a busy thoroughfare that affords high visibility for the business. The restaurant is known for its stellar breakfast and lunch menu. There is an adjoining retail space, which provides additional revenue streams and is useful in keeping people busy and spending while waiting for a table at peak hours. Remodeled and updated in 2019, there is outdoor seating on a pleasant patio. The greater Traverse City area is highly rated as a year-round tourist destination in the USA, offering summer and winter activities.

Category

Restaurant

Company website

Year established and history

Established in 1996

Why the business is an attractive proposition to a buyer

The restaurant has an established brand well known throughout the Midwest region and other parts of the country. It has been profitable year after year including 2020 despite COVID-19 restrictions and lockdowns.

Reason for selling

Retirement

Independency on the present owner

The business is turn-key. Current owners are willing to assist the new owner with the transition.

Brief business highlights

Product or service

Dine-In or take out prepared breakfast and lunch entrees. Provide take out coffee, espresso beverages and baked goods. Provide catering for special events. The retail shop offers treats and gift items. Shop provides wholesale items to other businesses.

Breakfast anyone?

Breakfast anyone?

Customer profile

Typical customers are community members as well as tourists visiting the Grand Traverse Bay area and Sleeping Bear National Lakeshore. According to the study by Anderson Economic Group of East Lansing:

• In 2012 over 3.3 million visitor trips were made to the Traverse City area.
• These visitor trips resulted in $1.18 billion in direct spending to our area businesses.
• Tourism is responsible for creating and maintaining nearly 12,000 jobs in the Traverse City area representing nearly 30 percent of our area's employment.
• Tourism generated more than $1.23 billion in economic activity for the Traverse City area.
• Almost $67 million in sales tax revenue was generated from tourism for the State of Michigan.
Those figures reflect a growth rate of some 4.5 percent per year in the economic contribution made by Traverse City’s tourism economy.
This business is located on a busy road with high visibility.

So many tourists and not enough restaurants

So many tourists and not enough restaurants

Sales channels used

Restaurant, dine in, take out with phone order or online order
Retail Shop
Ecommerce
Shops where some product is wholesaled

Key market facts

This will be provided in the marketing package after receipt of a signed NDA

Main promotional methods

Restaurant website
Traverse Chamber Of Commerce
Leelanau Chamber Of Commerce
Traverse Magazine
Facebook.com
TripAdviser.com
Yelp.com
Mapquest.com
MenuPix.com
Sirved.com
Restaurantji.com
BringFido.com
ArrivalGuides.com
Untapped.com
ZMenu.com

The value proposition

Well established customer base
Limited competition
Great location
word of mouth "advertising"
Unique menu items
Adjoining retail space

Yummy menu items for all types

Yummy menu items for all types

Number of employees, full time: 5

The main advantage(s) over nearest competitors

The best location for incoming traffic.
Well loved by the community
We have a unique menu for the area.
We have additional revenue streams from retail owned by us to keep customers busy spending money with us while waiting for a table
We are next to other businesses with high traffic.

Number of employees, part-time: 20

Key financial facts and forecast

Financial statements available with signed NDA. Full financials to be provided with signed offer during due diligence. Prior Phase I Environmental study also available.

Staffing

We conduct an annual employee meeting with classes tailored towards medical emergency procedures, choking, burns, and CPR. We do quarterly evaluations. We provide basic marketing/sales skills and food service training. We have five full-time employees and twenty seasonal employees.

Price and terms

Asking price

1,550,000

Price includes real estate, turn-key business all trade fixtures, web sites and associated domain(s) as well as e-commerce business.

Owner financing

Owner financing is available.

Owner financing terms

Owner may be willing to offer short term owner financing to well qualified buyer. Contact us for terms

Key financial facts and forecast

Financial statements available with signed NDA. Full financials to be provided with signed offer during due diligence. Prior Phase I Environmental study also available.

Profit forecast

Pictured above: Profit Forecast

The business value graphed against a range of cost of equity

Pictured above: Business Value graphed against Cost of Equity

The transition of business ownership

Current owners are willing to stay on for several months to assist in the transition if necessary.

Required buyer qualifications

Buyers should be financially qualified as well as have some retail/management experience

Type of business sale

Business brand, condo unit, trade fixtures, furnishing and websites, domain names, e-commerce business, wholesale business all included with sale of business.

Terms of sale

Cash, commercial port-folio, SBA or?.

  • Image 1 of the business listed for sale
  • Image 2 of the business listed for sale
  • Image 3 of the business listed for sale

The restaurant has an established brand well known throughout the Midwest region and other parts of the country. It has been profitable year after year including 2020 despite COVID-19 restrictions and lockdowns.

Future developments

The main business opportunities

Increase wholesale business, which is tourist driven. Continue with current business model which is inherently cost efficient and through careful management nets low cost of goods sold and higher gross profits. Continuing to fine tune the take out business will insure continued growth throughout the pandemic.

The challenges and risk

COVID will provide unpredictability to the tourism business for the next year or two.
Housing for seasonal employees can be a factor during peak months and will continue to be a challenge while the area governing bodies continue to grapple with the shortage of work force housing.

New or emerging competitors

There have been no new competitors close by in the last five years. Space for new competition is limited.

Blog author image

Greg Higgins

I am a partner at Cygnus Real Estate with over 11 years experience in home sales, income properties and property management. I am a licensed broker with a GRI designation. ....

Latest Blog Posts

Traverse City Area Restaurant For Sale

Sales MemorandumProprietor's name(s)Marketed exclusively by Cygnus Real EstateContact detailsCarole Higgins (Broker)carole.higgins@cygnusrealestate.com2316332577 / 2319943556SummaryBusiness main

Read More

March 2020 Traverse City Market Report

In March, the median home price in Traverse City went down 11% to $703K. The total number of new properties went up 24% to 74 with an average time on market of 378 days. Listing Count 

Read More

Dec 6 2019 43047 1

December 2019 Traverse City Market ReportIn December, the median home price in (49684) went down 7% to $654K. The total number of new properties went up 21% to 80 with an average time on market

Read More

The ProForma Part

Today I thought I would give you an idea of what a comprehensive pro-forma should look like as well as giving you some information on where to find a free pro-forma tool that you can use to analyze

Read More