Industry Description

Coffee House

SIC

5499 - 15

Days Open

Mon ­ Sat. ­ 46 Hours Total

Year Established

Since 1998

Hours of Operation

5:30 ­ 1:30 pm M-F; 6-12 Sat.

Years Owned

Since Feb. 2003

Full-time Employees

1

Part-time

0

Other Notes

Business Hours and product offering need to be increased dramatically.

Hours/wk by Owner

0

Owners Duties

Skills / Licenses Req¹d

Customer Service

Training Offered

2 wks. 46 hrs.

Non-Compete Terms

3 yrs. 10 Miles

Exec. Summary

Quaint drive thru coffee business with many opportunities for expansion,

including increased hours and product offering. 

Lease / Bldg. Info.

Mall

Monthly Rent

$1,320.21 + $100

Lease Commenced

1/04

Deposit

Lease Expires

1/09

Term & Option

2 ­ 5 Year Options

Bldg./Area Description

Square Footage

300 sq. ft.

Seats, Pkg, Zoning, etc.

Plenty of Drive thru space, and parking if necessary

Reason for Sale

Owners moving out of area

Financial Summary

Current Yr. Annual

2003 / Owner to Prove

2002 / Owner to Prove

Gross Revenue

As 2003

$76,317

As 2003

COGS

$17,266

Rent / CAM

$16,662

Payroll

$10,951

Net Profit (before tax)

$33,576 (Wrkg Owner)

Discretionary Cash

$33,576 (Wrkg Owner)

Expense Breakdown

Included in Sale

Assets

Liabilities

FF&E Included

> $8,500

Lease Obligations

$0

Inventory Included

$1,500 (Approx.)

Debt Included

$0

Other Assets Included

Other Liabilities

$0

Working Capital (not incl)

Return on Sale Price

Asking Price

$65,000

Owner Financing/Terms

Not Offered

Earnest Money Dep.

$10,000

Down Payment

Opportunity Summary

Headline

Orange County Drive Thru Coffee Shop

Summary

This quaint drive thru coffee shop located in Lake Forrest, CA (near Irvine and Mission Viejo, Laguna Niguel) offers a new owner fantastic value.  At present, the drive thru shop sells coffee, coffee beans and some bakery goods only 46 hrs. / week, and is closed on Sundays.  Estimates from similar businesses indicate that this busy location could potentially do over $60,000 in net revenues if opened 92 hrs./wk.  At present, it is open 46 hours per week, and is doing $76k in gross revenues, $33.6k in net profit (with a working owner).  As a result, the owners are selling for only $65.0k to ensure a quick sale. 

Facilities / Assets

Over $8k in assets are included in the sale, including a 60² Glenstar Refrigerator, a 48² Deli Case Refrigerator, Espresso Machine, Coffee Brewers and Grinders, Ice Machine, Cash Register, Alarm, Blenders, etc.

Competition

Competition is deemed moderate, however, to be expected as there is a Starbucks within 1.5 miles

Growth Potential

Many ­ The coffee house is only open from 5:30 am to 1:30 pm Monday thru Friday, and 6 am to noon on Saturday, for a total of 46 hours.  Many such establishments are open 90 hours per week.  Similarly, the business focuses on morning coffee.  New owners may choose to promote / further promote fresh juices, Jamba Juice style smoothies, sandwiches, desserts, or guilty indulgences (desserts, candy, cigarettes), etc.  Also, new owners may be able to capitalize on the lovely park behind the establishment by catering to the evening crowd, weekend picnicers, etc. 

Other

This business is priced for a quick sale.  Feel free to drive by to envision the great many possibilities.