Specialty Dessert Bakery Chain With Loyal Following
www.GlobalBX.com
Listing ID:
700314304
Listing Title:
Specialty Dessert Bakery Chain With Loyal Following
Quick Link:
http://www.globalbx.com/listing.asp?bId=314304
Industry:
Food and Beverage
Industry Segment:
Food Production and Packaging
Country:
United States
State / Province:
California
Area
Southern California - Los Angeles Area
City:
Los Angeles
Asking Price Range:
$250K - $500K
Gross Revenues:
$1,225,390
Cash Flow:
$110,363
Cash Flow Type:
Sellers Discretionary Cash
Year Established:
2006
Number of Employees:
10 - 19
Business Description:
This two location pastry, cake, cupcake, pie and confectionary oriented retail dessert bakery boasts a regularly following that includes large corporate clients (e.g. film studios), a bourgeoning custom cake client base and a healthy dose of loyal patrons that stop in occasionally or even daily to satisfy their cravings. The company's delicious products are a proven success, as evidenced by their sales volume. Now the enterprise simply needs to optimize its expenses, build its high margin business and potentially replicate both its high volume corporate client base as well as its high margin walk-in customer base!
Asking price: $349,000
Both locations occupy extraordinarily sought after real estate in two popular, yet significantly different, Los Angeles area retail markets. This allows them to attract not only the daily consumer but also the large corporate clientele that they cater to. The first location boasts 1,500 square feet with a full-kitchen and hood, in an extraordinarily popular retail area where such entitlements are in short supply, while the second 500 square foot location has an electric hood and is positioned to satisfy high foot traffic demand. The locations lease for $10,24 per month and $2,606 per month respectively (including NNN) on leases that expire in July 2021 and December 2020 with options to be negotiated in sale.
While general completion exists in the cake shop, confectionary and dessert related retail bakery product category, this 2 location chain has managed to capture two desirable market segments--- the retail consumer and the corporate customer --- that provide it a healthy overall margin.
The business could benefit from new management focusing on the highest margin business segments while also potentially additional retail locations that don't necessarily require a hood or on site food preparation.
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