Opportunities
Absentee Owned Pizza Joint in Lincoln
Sold
90% delivery and $100,000+ in assets!
Specifications
Providing 90% delivery and carry-out services, this restaurant serves pizza and chicken to the hungriest customers in the Lincoln area. Assets include over $100,000 of equipment and inventory. Open until 3 AM every night of the week and 4 AM on the weekends, late night delivery is their specialty. Customers can order online for an even more convenient experience.
Offering a giant menu full of great dishes for the whole family, they are known for their signature pizza and pasta recipes and broasted chicken. In recent years, they have won numerous awards for Best Local Pizza and Best Local Chicken in the area.
As a locally owned and operated franchise, there are five other locations around the Midwest. This store has 2 full-time managers, 1 kitchen manager, 6 service cooks, and 9 delivery drivers. The current owner provides general oversight for this location.
In addition to their awesome menu, this restaurant also offers full-service catering to venues within 40 miles. Currently, catering brings in around $3,500 per month, which could easily be doubled with a focused effort to growing this aspect of the business. Other growth opportunities include increasing their exposure on the local college campus.
Business Highlights
- Year Established: 2014
- Location and Service Area: Lincoln, Nebraska with catering up to 40 miles
- Capacity: Restaurant seats up to 50 guests
- Services: 90% Delivery and carry-out 10% Dine-in
- Lease: 2,500 sq. ft. building: 1,250 sq. ft. kitchen area & 1,250 sq. ft. dine in area with tables and booths
- Reason for Selling: Other ventures
- Employees: 18: 1 FT General manager, 1 FT Assistant Manager, 1 Kitchen Manager, 6 Service Cooks, 9 Delivery Drivers
- Hours: 3pm-3am Mon.-Thurs.; 3pm-4am Fri. & Sat.
- Seller Training Period: 1 Month
- Growth Opportunities: Increase catering business and dine in services as well as increase exposure on college campus
- Current Owner’s Responsibilities: General Oversight
Financial Highlights
- List Price: $90,000
- Gross Sales:
- 2018: $757,515
- 2017: $748,667
- 2016: $715,752
- Cash Flow:
- 2018: $57,825
- 2017: $63,731
- 2016: $61,291
- Assets Included in Purchase*
- Equipment: $91,149
- Furniture & Fixtures: $7,368
- Inventory: $10,000
- Intangible Assets: Exceptional customer service and fast delivery
*amounts may vary
Cash Flow Analysis
Description of Financial Statement | P&L Statement | Tax Return | Tax Return | Tax Return | Notes |
2018 | 2017 | 2016 | 2015 | ||
GROSS SALES | $757,515 | $748,667 | $715,752 | $845,343 | |
Net Income Shown on Financial Statement | $43,335 | $45,790 | $37,507 | $-54,711 | |
ADDBACKS | |||||
Depreciation | $11,554 | $15,195 | $21,107 | $29,731 | |
Interest | $503 | $313 | $244 | $4,852 | |
Amortization | $33 | $33 | $33 | $0 | |
Non-Business Telephone | $2,400 | $2,400 | $240 | $2,400 | $200/month |
TOTAL ADDBACKS | $14,490 | $17,941 | $21,624 | $36,983 | |
Seller's Cash Flow = Total Addbacks + Net Income | $57,825 | $63,731 | $59,131 | $-17,728 | |
Profit Margin | 7.63 % | 8.51 % | 8.25 % | -2.10 % |
Typical Clients
- Families
- College Students
- Late Night Customers
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
Employees
- 1 full-time General Manager
- 1 full-time Assistant Manager
- 1 Kitchen Manager
- 6 Service Cooks
- 9 Delivery Drivers
Growth Opportunities
- Expansion of catering services, especially for lunch crowd, as the restaurant does not open until 3pm
- Increase exposure on local college campus
Valuation Details
The Firm used a cash flow valuation methodology to determine the purchase price of the business.
The formula used is as follows:
Cash Flow x Prescribed Multiple = Fair Market Value
Cash flow is the sum of business net income plus any owner perks and any non-onward going expenses.
A multiple is prescribed by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiple.
For this business, a 2018 cash flow was used with a prescribed multiple is 1.5. With this information, the computation is as follows:
$57,825 x 1.5 = $86,738
The fair market value found above positions the business list price at $90,000.
Funding Example
Purchase Price: $90,000
Buyer Down Payment: $25,000
Seller Financing: $25,000
Bank Loan: $40,000
Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.
*The Firm Business Brokerage is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.
Print, sign and send to:
210 N 78th St. 2nd FloorOmaha, NE 68114
Or fax to:
f 402.939.0857