Running a Bar – aside from being the semi-retirement dream
of most men and a fair few women – is also one of the most secure businesses available. When the economy is trending downward, people put more expensive pursuits such as holidays on hold and instead console themselves with a few more nights out at their local. And when things pick up again, they go out to celebrate their good fortune at the same place. That makes alcohol and food retailing virtually recession-proof. The business is in an ideal location to host events, hold wedding receptions, and accommodate live performances. This is something the vendors have not fully capitalised upon to date and represents one of several possible areas for expansion
under a new owner.
This venue has a licenced seating capacity of 125, so any expansion could occur without the need for extending the venue or the licence conditions – it’s simply a matter of the new owner deciding they want to grow turnover even faster than will occur with growth in the population and tourist numbers.
The business is an ideal location to host events, hold wedding receptions, and accommodate live performances. This is something the vendors have not fully capitalised upon to date and represents one of several possible areas for expansion under a new owner.
Year-round patronage is provided by tourists – mature and younger couples and groups of friends – visiting in the off-season to avoid the school holiday crowds, local residents (whose numbers are steadily growing) customers of other businesses in the area and people who just want a relaxed drink before dinner.
With unique ambience and an ideal location, and a reputation for good value and friendly service, The bar has the fundamentals right. What it needs now is someone with the energy and vision to capitalise on these myriad advantages and to take the business to new heights.
Revenue in the pubs, bars and the nightclub industry in Australia is estimated at $17 billion
(Source: IBIS World – “A pot of gold: An increasing consumer preference for premium beer has bolstered the industry”).
Although there has been only modest growth in recent years, there is potential for further expansion by diversifying into craft and premium beers and spirits.
Large volume COD business
This generates excellent cash flow and means less capital need be committed to the business.
• Exceptionally secure supply agreements
• Location – Location – Location
Ideally situated with huge passing trade all day and night.
• Widespread, growing repeat client base
The fast-growing population and re-development of the area virtually guarantees future growth in profitability.
• Low stock level of just $15,000
Also assists in reducing the need for working capital.
• Low risk – key customer retention features
Convenience, simple quick food, a large range or beverages, all combine to ensure that patronage of the bar will remain high.
• Only four staff – One full time and Three casual
The hospitality industry being as large as it is, there has never been a problem to source new staff when required.
• Low competition
There are no similar businesses in the area – certainly none offering the same unique ambience. While there are other liquor outlets nearby, these cater to a younger demographic.
• Immediate potential to expand the business
Through increased marketing, advertising, promotional activities and a simple web site being launched = promoting business could be very benificail an easy to generate.
• Barriers to market entry
Aside from the significant capital requirements to establish a business such as this, a newcomer to the market hoping to compete with this business would face considerable barriers to entry. Acquiring a liquor licence is an expensive and lengthy process, usually in the face of strong opposition from Police. There are also no premises offering the sorts of facilities this business has, so one would need to be constructed – after a suitable site had been secured and planning permission obtained.
• Simple to operate – no experience necessary
The owner had no industry experience prior to purchasing the business, and set about employing staff who could manage the operational aspects. As a result the new owner will not need any technical experience as it already exists within the staff employed.
• Minor overheads
Given the size of the annual turnover, overheads are relatively small.
• Profits can be proven
The business has a complete set of verified accounts which clearly show its profitability.
Businesses such as this rarely hit the market and are highly sort after.
Send me an e-mail and I will pencil you in for exclusive look at the Detailed Business Report.
Note = a Non- Disclosure document will need execution in our office prior to release of any information.