Broker Name:Kevin Chung
Broker Email:info02@v-aidgroup.com
Broker Phone:1-866-519-2421
Broker Address:2727 LBJ Freeway #775 Farmers Branch, TX 75234
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American Breakfast & Lunch Cafe and Fast Food Mexican Restaurant
(Restaurants)
Collin, Texas
Listed Price: $ 630,000
Listing ID: 000930

Listing DetailsDown Payment: $ 190,000
Gross Revenue: $ 872,000
Cash Flow: $ 335,000
FFE: $ 125,000 (Included in Price)
Inventory: $ 6,000 (Included in Price)
Reason for Sale:

Other opportunities


Training & Support:

Owner will provide a sufficient training for an agreed upon period to make the transition into the business as seamless as possible.


Listing SummaryBusiness Description:

Package deal with traditional American breakfast and lunch diner and authentic Mexican fast food restaurant placed adjacent to each other in the same strip center in prime location anchored by nationwide convenience store is now on the market for acquisition. Hot Pancakes, cozy diner-style American restaurant serving hearty and casual traditional breakfast and lunch menu items is now available for acquisition. This business was originally established by the current owner in 2014 and has built a strong and loyal customer base over the last several years in operation without too much marketing effort. This restaurant offers a variety of breakfast menus such as build-your-own omelets, pancakes, waffles, wraps, sandwiches, salads, burgers, hot food entrees, breakfast menu all day, and kid's menu. There are few other similar restaurants in the area, the biggest competitive edge this restaurant has over other competitors is the freshness and quality of the products relative to its prices. The prices are very inexpensive, affordable, and unbeatable for the quality and portion and also the location is excellent as it is located just off the highway and is anchored by a nationwide convenience store, which brings immense foot traffic to the area. Most of the customers are middle to upper income older crowd and individuals and families from nearby densely populated residential neighborhoods. Gross sales of this restaurant have been consistent for the last several years at around $615,000/year due to its location, very inexpensive price point, and well-established customer base. Currently, minimal marketing is in place, and proactive marketing methods such as social media outlets, email marketing, web-based advertisements, direct mailing, daily special, and 3rd party delivery services are needed to be fully utilized to achieve maximum income potential. Marketing efforts on catering service to corporate offices and headquarters, medical offices, and churches nearby can also greatly improve the sales as a catering business still remains under-utilized. As this business gets overwhelmed during its peak brunch hours due to its limited seating and cannot accommodate all customers, some decide to go elsewhere rather than waiting for indefinitely. In order to serve all income customers and not lose out on any revenue, the owner can demolish the dividing wall shared by the other business and expand the dining area to accommodate all customers. This could be the major factor to increase overall sales. The second location, Chino Tacos is located adjacent to Hot Pancakes in the same retail strip center. This restaurant was established in April 2019 and serves authentic Mexican food, such as street tacos, breakfast tacos, burritos, tortas, salads, quesadillas, kid's menu, and beers. Just like the other restaurant, the owner has emphasized on freshness, quality, portion, at very inexpensive and affordable prices. Most of the customers are middle-income individuals, predominantly consisting of Hispanics, from nearby small businesses, warehouses, and industrial businesses. Competition can be expected for this type of restaurant, there is no competitor in the immediate market area which allows this business to dominate the area. Gross sales of this authentic Mexican restaurant have been consistent since its establishment and are currently at approximately $750-$800/day due to its prime location and unbeatable prices for the quality and options. Currently, there is no marketing is in place, and proactive marketing needs to be done to reach the full potential of this business. Although there are many ways to proactively market this business, particularly online-based marketing such as social media outlets, email marketing, web-based advertisements, direct mailing, coupons, special, etc. will bring a new set of customers and contribute to the continued success of the business. Utilizing catering and all 3rd party delivery services are crucial to increase overall sales as this type of food is in high demand for delivery. Pancake House is operated as absentee with full capable staff and the owner is minimally involved in Chino Tacos only during the evening and responsible for closing duties. This opportunity is unique and convenient as both businesses are located adjacent to each other and the amount of owner's involvement in the general operation is limited and still generates a sufficient amount of revenue and income. This venture will be great and exciting for an owner who can market the business more aggressively and proactively and reach its full financial potential.


Competition:

There are few other similar restaurants in the area, but both of these restaurants take pride in the freshness and quality of the food while having very inexpensive and affordable price points for all types of customers.


Potential Growth:

Currently, minimal marketing is done and proactive marketing methods are needed to fully utilize to achieve maximum income potential. During peak breakfast and lunch hours, Pancake House is overwhelmed with customers and end up losing some of them due to limited restaurant space. Since both restaurants are adjacent to each other, with approval from the landlord, the owner can break down the wall between the two restaurants and expand the dining area to accommodate and serve all incoming customers and increase overall sales. Also, the new owner can further increase overall sales by offering catering to nearby businesses and utilizing all third-party delivery services as the current owner is not utilizing any of the delivery services.


Financing/Terms:

100% down at the time of closing or 30% Cash Down with SBA Financing for Qualified Buyers with Industry Experience.


LocationSquare Footage: 1870
Facilities:

These two businesses are adjacent to each other and placed in a 1,870 SF and 1,886 SF strip center anchored by a nationwide convenience store, which brings an immense amount of foot traffic. The businesses are conveniently located just off the major highway and are surrounded by many small businesses, corporate headquarters, hotels, medical centers, apartments, and homes. All pieces of equipment are brand new and are in excellent working condition.


OperationYear Established: 2014
Employees: 6FT/8PT
Absentee Owner: Yes