Clayton Restaurant Generating Over $2.5 Million a Year

Description

Full-service restaurant and bar for sale in Clayton, Missouri. The business has operated in the market for many years and serves a mix of local residents, professionals, visitors and repeat customers.

Financial profile

• Annual revenue: more than $2,500,000
• Operating business with established systems
• Existing staff and vendor relationships
• Lease represented as favorable relative to current Clayton market rents

Buyers should review current financial statements, tax returns and POS reports to confirm revenue, operating margins and cash flow.

Business profile

• Full-service dining
• Bar operation
• Catering opportunities
• Multiple food and beverage revenue streams
• Fully equipped restaurant
• Long operating history in Clayton

Location

The restaurant operates in Clayton, one of the St. Louis region's established business and dining districts. The location serves both daytime commercial traffic and evening restaurant customers.

The seller reports good visibility and consistent customer traffic. Buyers should independently review traffic patterns, surrounding development and current demographics if these factors are material to the acquisition.

Lease

The seller states that the existing lease is below comparable current market rates in Clayton.

Because favorable occupancy costs can materially affect restaurant profitability, buyers should review the remaining lease term, renewal options, rent increases, CAM or other pass-through expenses, assignment provisions and landlord approval requirements.

Operations

The restaurant is fully equipped and currently operates with experienced employees, established procedures and existing supplier relationships.

A buyer should determine how dependent daily operations, customer relationships and management are on the current owner or individual key employees.

Growth

• Expand catering
• Increase private and corporate events
• Develop additional bar programming
• Increase direct online ordering
• Expand local business partnerships
• Review unused operating periods or menu categories

Due diligence

Buyers should verify historical financials, food and beverage margins, payroll, catering revenue, lease economics, equipment ownership, employee arrangements, vendor accounts, customer deposits and any intellectual property included in the transaction.

If liquor service is part of the current operation, license status and transfer requirements should also be confirmed before closing. Any continuation of the existing brand should include verification of trade name, recipes, digital accounts and related intellectual property rights.