Over $600,000 in 2021 Seller’s Discretionary Earnings for this Pizza / Italian food franchise for sale in a fast-growing suburb of Austin! Yes, $600,000 – and rising!
The food itself at this Franchise for Sale by We Sell Restaurants is fantastic and well-priced. This is the kind of cash flow that is rare in the industry, and it is priced to sell. Buy this store and you will have incredible cash flow literally from Day One.
This Franchise for Sale is in a large retail center, with multiple national anchor stores, at the crossroads of two main highways through the area. This establishment is right on the street into and out of the massive complex, so it is highly visible to the seemingly never-ending stream of shoppers flooding into the area. As you can tell from the sales, this is a fantastic location.
And customers love their food! Just one online review site has more than a thousand reviews. This is a very well-known location in the area, the kind of place that people meet and refuel at before or after they go shopping.
Only a few years ago, this location was the jewel of the franchise – it was literally the highest-grossing location, with sales of an astonishing $2.3 million a year. To put that in perspective, this year the top line was $1.4 million. The owners at that time had a personal crisis and walked away from the store, which consequently plummeted. The current owner bought it less than two years ago and has completely turned it around and headed it back to being the incredibly profitable restaurant it once was.
The current owner is the person you want to buy a restaurant from. He is an extremely accomplished restaurateur who owns well over a hundred restaurants nationwide. You get the benefit of having a store that has been set up by him, so you know that it is very well run and has the right systems in place to continue the revenue stream in the future.
Also, when he took over, he immediately replaced anything that was sub-standard. For example, this store now has a new 1,000 lb ice machine. Ice machines are often rented, but owning one saves that monthly payment, and this store now owns one. He also added a new double range, a new fryer, and a new low single range. Anything in the store that needed to get done, got done.
This is a large store, fully capable of handling the customers necessary for the high revenue stream. It is 4,300 square feet, with room for 100 seats inside and 50 outside! Rent, including CAMS, is $13,900, and there is an existing TABC beer and wine license.
As amazing as the cash flow is right now, an Owner / Operator has two significant upsides.
First, the current owner changed the restaurant from full-service to counter service. This helps with the overall flow of the restaurant, and also saves on front-of-house staff. In addition, front counter tips are reportedly 19%, which can be a very significant additional revenue stream to an Owner / Operator who works the front counter. Even at several shifts a week, this can be tens of thousands of dollars a year in income over and above the high cash flow already reported in the financials.
Second, this store had gross sales of about $1,400,000 in 2021, which is already very significant. As mentioned earlier, though, not so long ago this store had gross sales of $2,300,000. Right now, sales are again headed up, and if they go anywhere near their former high, this would result in literally hundreds of thousands of dollars in additional profit each year. This is the first time we have ever been able to write that in a listing. Having true upside potential that large is essentially unheard of.
Normally, a restaurant making this kind of money would sell for a multiple of over 3, meaning at least $2,400,000. Maybe more. Because this is a turn-around store, it is not eligible for SBA-backed lending. The seller knows this, and has set the store at a major discount because of it. In addition, he is willing to do some financing for a well-qualified buyer, and there are other potential lending sources as well.
Also under normal circumstances, a restaurant like this would not come to market at any price. The owner would relish the cash flow and keep the restaurant, at least for the three years necessary to make it lendable by the SBA. In this case, though, the owner enjoys the turn-around process and has no interest in running the store for the long term, let alone working in the store himself.
The transfer fee of $14,000, payable to the franchise, helps to offset the robust six-week franchise training program in Houston. A new Owner / Operator will get great training and then immediately step into one of the highest cash-flow stores in the entire franchise. It is a dream situation.
All these factors together bring to market a very high earning store, with proven further upside potential, at a significant savings. The owner is willing to do some owner financing, assuming a significant initial payment of at least $500,000. This location could also serve as the anchor for more of these franchises in the greater Austin area. This is really the listing of a lifetime for the right person;the earnings with this store are truly astounding.
Lease Term: expires March 2030
Monthly Rent: $13900,
Indoor Seating: 100
Inside Sq. Ft: 4300,
Hood System: Yes
Hours Open: Sunday - Thursday 11am-9pm Friday and Saturday 11am-10pm
# of Part-Time Employees: 20
# of Full-Time Employees: 6
Net Sales: $1473532.00
Owner Benefit: $607978