Turnkey A&W Restaurant with Excellent Growth

Undisclosed Address, South Dakota
Business Opportunity for Sale
Catylist Listing ID: 30749680
Property Subtypes: Food and Beverage
Building Size (RSF): See Agent
Sale Price: $550,000
Name of Establishment: Turnkey A&W Restaurant with Excellent Growth
Business Website Address: https://bit.ly/3izWqel
Franchised Business: Yes
Franchise Parent Name: A&W Restaurants
Year Business Established: 1956
Gross Revenue: $933,225 (Annual)
Cash Flow: $204,840 (Annual)
Cash Flow Type: Sellers Discretionary Earnings
Last Updated: 11/4/2021

Overview / Comments

This 65+ year-established A&W restaurant is highly profitable and situated in an excellent small-town location, with proximity to two major highways and very low competition.

A&W is an iconic brand emblematic of American values and simpler times. Their menu is filled with the classics including hot dogs, burgers, shakes, and of course, A&W Root Beer.

The Owner purchased the Franchise in 2006. After fifteen successful years in the business, she’d like to transition out in order to focus on her other business ventures.

The Restaurant’s location offers a community of loyal customers and multiple annual events, as well as proximity to a major highway, making it and popular pit stop for hungry travelers. The Restaurant also experienced an increase in sales through the pandemic, even as they have been drive-through only. Ownership took advantage of this time to remodel their dining room and update their kitchen equipment and drive-through menu board to Franchise standards.

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Additional Details

Industry Segment: Restaurants
Reason for Selling: Other business ventures.
Value of Inventory Included ($): $0
Value of Furniture, Fixtures, and Equipment ($): $0
Real Estate Status: Real Property
Value of Real Estate Included ($): $275,000
Real Estate Lease Description: Newly remodeled dining room, updated kitchen equipment and drive through menu, new walk-up window. Available for sale (not included in asking price).
Employee/Labor Description: 18 employees.
Mgmt/Training Support Description: Ownership is willing to provide reasonable and customary transition assistance.
Competition/Market Description: (1) Small Town Strength in a High Traffic Area: The restaurant operates in a strong, small town market where the A&W brand has thrived for its 65 years of operation. (2) Prime Vendor Relationships Keep Supply Costs Down: A&W franchise partners can tap into significant discounts on food, janitorial supplies, and equipment. Their extensive network keeps distribution costs from spiraling, and the system overall helps A&W operate with wider profit margins. (3) Profitable and Turnkey: The Restaurant is highly profitable and has a newly remodeled dining room with updated kitchen equipment and drive-through, allowing a new owner to focus on further growth. (4) Raving Reviews & High Ratings: Strong customer reviews keep clientele coming back and also serve to bring in more new customers.
Growth/Expansion Opportunities: (1) Online Ordering: New ownership could partner with delivery apps to make their products more available and boost sales. (2) New A&W Branding and Marketing: A&W’s modern marketing techniques leverage its nostalgic appeal in ways that attract every generation. (3) Additional Management: Current ownership operates as the full-time manager of the Restaurant. A new owner could hire a manger or management team to offload some responsibility and allow them to focus on growing the Business.
Seller Financing Description: Seller financing is available for qualified buyers.

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