Opportunities
100% Delivery & Take Out – Omaha Pizza Franchise Location
Revenue increased even through COVID!
Specifications
This Omaha pizza franchise location is currently 100% delivery & take out and is still seeing an increase in revenue through COVID! This location for sale has been in business since 1980, and under current ownership since 2006. There are around 21 employees, with FT Shift Leaders, and PT Kitchen Staff, Front Counter, and Delivery Drivers. All employees start at $11/hr., with Shift Leader pay at $18-18.50/hr. 80% of all employees are trained to full completion through the corporate online training. As the restaurant is franchised, a 5% portion of the revenue is paid out to the corporation, in addition to a small fee of $61/month for a customer loyalty program, in which a customer can earn free items as they accumulate points through the restaurant’s app. Their POS, Speedline, is fully integrated through Tillster, so the push of one button sets delivery in motion. Approximately 77% of the revenue is from dinner orders (after 4:00).
Post-COVID, the restaurant has transitioned to be fully delivery and take-out based, with sales vastly improving over 2019. Currently, the dining area is still closed, and thus would be a perfect growth opportunity for a new owner, as the present dining area furniture was reupholstered during the COVID shutdown. Other key assets include two Middleby Marshall ovens, a make table, 60 qt. Hobart mixer, cooler, a Somerset dough sheeter, and POS systems. A great deal of local marketing is already done, with an advertising co-op being headed by local owners, and advertising partnerships done with local schools. The current owner provides general management and oversight for the location, opening the restaurant on Mondays and overall working 25-30 hours per week.
Priced at just $535,000, a 15% down payment of $80,250 returns $88,861 in the first year after debt payments – a 111% return on investment! A new owner could certainly boost revenue by obtaining a liquor license and re-opening the dining room.
Business Highlights
Year Established: 1980; Under current ownership since 2006
Location: Omaha, Nebraska
Service Area: Millard Area
Menu Items: Pizza, breadsticks, potato wedges, calzones, wings, monkey bread, dessert pizza
Lease: 1,800 sq. ft. for $3,500/month
Reason for Selling: Relocation for retirement
Personnel: 21: 4 FT Shift Leaders | 4 PT Kitchen Staff | 4 PT Front Counter | 6 PT Delivery Drivers
Seller Training Period: Negotiable
Growth Opportunities: Re-open dining space | Increase marketing
Current Owners’ Responsibilities: General management and oversight—currently works 25-30 hours/week
Financials
- List Price: $535,000
- Sales are up 5.5% from last year when comparing week-to-week reports.
- 2020 Cash Flow: $156,707
- 2019 Cash Flow: $120,658
Cash Flow Analysis
| Description of Financial Statement | P&L Statement Jan-July | Tax Return | Tax Return | Notes |
| 2021 | 2020 | 2019 | ||
| GROSS SALES | $521,150 | $923,248 | $818,368 | |
| Annualized | $893,400 | |||
| Net Income Shown on Financial Statement | $105,106 | $49,020 | $38,670 | |
| ADDBACKS | ||||
| Compensation to Owner | $0 | $108,000 | $104,000 | |
| 11% Tax on total W2 Salaries | $0 | $11,800 | $11,440 | |
| Depreciation | $0 | $23,594 | $7,086 | |
| Interest | $0 | $0 | $42 | |
| Amortization | $0 | $1,133 | $1,011 | |
| Meals & Entertainment | $0 | $13 | $0 | |
| Auto-Personal Use | $3,092 | $9,484 | $8,901 | |
| Cell Phone | $1,108 | $1,900 | $1,900 | |
| Owner's Insurance | $3,937 | $6,750 | $6,750 | |
| Rent Adjustment | $-1,465 | $4,933 | $858 | |
| Hiring GM | $-35,000 | $-60,000 | $-60,000 | |
| TOTAL ADDBACKS | $-28,328 | $107,607 | $81,988 | |
| Seller's Cash Flow = Total Addbacks + Net Income | $76,778 | $156,627 | $120,658 | |
| Annualized | ||||
| Profit Margin | 14.73 % | 16.96 % | 14.74 % |
2020 saw a sizeable increase due to the COVID-19 pandemic and the closure of the dining area. Based on 2021 annualized gross sales, the upwards trend will continue; the year is expected to end up just shy of $1M, and anticipates breaking that $1M mark in 2022.
Cash Flow for 2021 will most likely be higher than presently indicated (around $200K).
Valuation
Funding Example
Funding Details
Business:
Offer Price: $
% Buyer Cash Down at Closing: $
% Seller Carry Back via Promissory Note: $
year term at a rate of %
% of Purchase Price secured by Buyer and Seller
Total Bank Loan Need: $
% of Purchase Price
Desired Loan Type:
Desired Bank Terms: year term at a rate of %
Total Business Assets, Inventory, and A/R: $
Total Undercollateralized Loan: $
Loan Payments
| Monthly Payment to Bank: | $ |
| Yearly Payment to Bank: | $ |
| Monthly Payment to Seller: | $ |
| Yearly Payment to Seller: | $ |
| Total Monthly Debt Service: | $ |
| Total Yearly Debt Service: | $ |
Conclusions
Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
|
Cash Flow: 2020 Cash flow |
$ |
| Annual Debt Service: | $ |
| RATIO: |
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
|
Cash Flow: 2020 Cash flow |
$ |
| Annual Debt Service: | -$ |
| NOI: |
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
| Down Payment: | $ |
| NOI: | |
| ROI: | % |
Attachments
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210 N 78th St. 2nd FloorOmaha, NE 68114
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