Supermarket/convenience store with café facilities and additional office rental income
Ref.AF049 Location London, Central LondonAsking Price £175,000Confidential offered for sale
Finance available to buy this business subject to status. All regulated business is passed to independent financial advisors who are regulated by the FSA | |
Asking price includes:
Annual turnover between £250,000 and £300,000
Gross margins of between 50% and 100%
Excellent location with good passing traffic
Close proximity to London Underground and mainline rail stations
Four short term rented offices with good occupancy rates
Potential for growth and expansion
Well equipped catering facilities
Secure leasehold premises
Training and handover
Excellent reputation
Fixtures and fittings
Goodwill
Stock | Business profile: | With a retail outlet established on this site for over thirty years and the premises refurbished to a very high standard and re-launched by the current Owner at the end of 2003, this is a busy independent supermarket/grocery store and coffee bar serving the local community. This business enjoys an excellent catchment area including many local households, the children from a local situated just a few yards away as well as huge numbers of staff from the many offices there are in the local vicinity. Occupying the ground floor and basement of a corner site of a terrace row converted into flats and offices, the business also includes four small office suites with good occupancy rates. Available on short term rental basis, this accommodation is frequently taken by start up businesses looking for a first base from which to operate. On average occupants stay anything between 6 months and two years.
The business currently generates a weekly turnover of between £5,000 and £6,000, derived mainly from the sale of all the normal ‘corner shop’ lines including convenience and frozen foods, dairy products, household goods and groceries, fresh fruit and vegetables as well as sweets, confectionery and snacks.
Although serving coffee, tea, sandwiches, soft cold drinks and fresh juices etc, the café, has a definite mediterranean flavour with the emphasis on koftes and felafels, rather than the more traditional British fayre. There is seating for approximately twenty in all, including tables and chairs outside the front of the premises.
This business is ideally placed, close to the Edgware Road and with Edgware Road underground station and the Marylebone mainline rail station close by, generating high levels of passing traffic throughout the day, seven days per week. Situated as it is close to several major employers and on a major cut-through for cars driving between the Edgware Road and Lisson Grove, just north of central London, the café also enjoys a thriving takeaway trade. A public house is located close by, whilst there is ample car parking at the front and side of the supermarket.
With turnover consistently in the region of £250,000 this is a rare opportunity to purchase a supermarket/grocery store with café and additional income from office accommodation rental, in a good locality with low rates and rent and with so much genuine potential.
Key strengths:
This business is ideally situated, just north of central London in an area with a thriving local population. Turnover for the supermarket and café is further supplemented by local schoolchildren and a large volume of office employees working close by. Close to several major transport facilities including underground and mainline stations and on a major thoroughfare used by motorists this business enjoys high levels of awareness and good footfall.
Although primarily a supermarket/convenience store, this business has fully utilised all of the space available supplementing its revenue with the café and office accommodation, lessening its reliance on any one sector. The cafe area is very well equipped with a toaster, microwave, coffee grinder and coffee making facilities, display fridges etc. Recently refurbished to a very high standard the premises are attractive and well presented.
Key opportunities:
There is an outstanding opportunity to build on the existing products and customer base of this company. With a strong demand for the products combined with a capacity to increase turnover, a new owner contributing fresh ideas and investment in resources will have every advantage of building on an excellent platform.
Although the café contributes well towards the overall performance of the business, there is no doubt that converting this facility to a more traditional British café opening earlier in the day to serve breakfasts and more mainstream lunchtime foods including sandwich fillings for the takeaway office trade would have a significant impact on turnover and profitability.
Other possibilities include the retailing of additional lines including newspapers and magazines, together with local delivery rounds, the possibility of applying for a licence for the retail of wines, spirits and beers as well as the installation of a lottery terminal, Paypoint facilities or ATM as well as offering Internet access from the Café.
It may also be possible to convert the basement office accommodation for residential use, subject to the necessary planning permissions.
| Location and premises:
The double fronted premises comprise the corner site of a terrace of Victorian buildings converted variously into flats and offices. The café and supermarket comprise the Ground Floor with the basement given over to self contained office accommodation. The road could be described as quiet but busy.
The premises are leasehold with twenty two years remaining. Rent is approximately £25,000 per annum with Rates £5,553 per annum.
Opening hours:
The supermarket and café are currently open between 7.00 am and 11.00 pm weekdays, between 9.00am and 11.00 pm Saturdays and between 10.00 am and 11.00 pm on Sundays. | <>Advertising and Marketing:
Acting as a valuable community store and open for long periods each day throughout the week, and situated in a prominent location, this business has little need of advertising and marketing. | | | Financial profile: | The business is offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
This business currently generates between £5,000 and £6,000 per week, gross turnover. Gross margins in the supermarket are approximately 50% and approximately 100% in the Café.
The offices generate rents of between £600 - £750 per month according to the size.
The purchase price includes all stock and fixtures and fittings. | Employees:
The current Owner is responsible for all aspects of the day-to-day running of the operation supported in the Café by a Chef working 6 hours per day on food preparation and cooking and an Assistant serving in the Café 6 days per week, approximately 8 or nine hours per day. There is also part-time night cover for evenings in the shop and a secretary/administrative assistant. | Support and Training:
The owner will provide full familiarisation, training and handover to ensure a smooth transfer of the business to new Owners. | Reason for Sale:
Having developed the business to its current size and scale and working in it from the very outset, the Owner wishes to pursue other business opporunties. | | Turner Butler Disclosure Statement: This statement applies to information relating to any company or other undertaking or business advertised for sale by Turner Butler (a 'Business') The information supplied by Turner Butler on its website or in any other promotional material ('the Information') is not and is not intended to constitute an offer for sale of the Business or any assets of the Business or of the shares of any company which owns the Business. For the avoidance of doubt there is no intention to create a legal relationship which will only come into existence when a written contract for sale and purchase of the shares in or the Business has been entered into The Information provided is not intended to address your particular requirements. Further the Information does not constitute any form of advice recommendation representation endorsement or arrangement by Turner Butler and is not intended to be relied upon in making (or refraining from making) any specific decisions. Any agreements transactions or other arrangements made between you and any client of Turner Butler are at your sole risk and responsibility. The prospective sellers of the Business have provided the Information to Turner Butler. The Information has not been verified by Turner Butler. You must carry out your own due diligence and satisfy yourself as to the accuracy of all matters. In the case of the sale of shares in a Business the Information has been prepared on the basis that the shares will consist of or include more than 50% of the voting shares and that both the seller and the buyer is either a body corporate, a partnership, a single individual or a group of connected individuals so as to fall outside the scope of regulated activities as defined by the Financial Services and Markets Act 2000. If you are considering a transaction which falls within the scope of such regulated activities you cannot do so through Turner Butler. Appropriate professional, legal and accountancy advice should be obtained before making or refraining to make any decision. Turner Butler does not accept any responsibility or liability for loss or damage of any nature that may occur by reliance on the Information. Neither Turner Butler nor any of our employees or agents makes any representation as to the completeness or accuracy of the Information nor do we accept any liability for any losses, costs, liabilities or expenses which may arise directly or indirectly from your use of, or reliance on the Information. This document is governed by and shall be construed in accordance with English Law and any dispute arising in connection with it shall be subject to the non-exclusive jurisdiction of the English courts Turner & Co (GB) Limited registered in England and Wales under company no. 2477988 of registered office Savoy House Savoy Circus London W3 7DA, trading as Turner Butler © Shaun Sweeney October 2006 |
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