Turn-Key Semi-Absentee Bar with Type 48 License (INVENTORY & FFE INCL)

Clovis, CA (Fresno County)

Turn-Key Semi-Absentee Bar with Type 48 License (INVENTORY & FFE INCL)
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Asking Price: $130,000

Cash Flow: $45,000

Gross Revenue: $271,000

EBITDA: N/A

FF&E: $50,000

Inventory: $10,000

Rent: $1,500 /Month

Established: 2014

Turn-Key Semi-Absentee Bar with Type 48 License (INVENTORY & FFE INCL)

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Business Description

Opened in February, 2014, this bar is a fully turn-key, profitable business operating under a Type 48 liquor license (no food necessary). The current owner purchased the bar from a previous party and invested over $50,000 into interior and exterior upgrades in order to revamp it and make the property a more appealing and welcoming environment. Over the course of the 3+ years in operation, the business has built up a tremendous amount of goodwill within the community, while also achieving consistently growing sales over that time. The bar enjoys a reputation of providing a great level of service to its loyal customer base, which continues to grow year over year.

The current owner is semi-absentee and comes in on a limited basis (on average just one week out of the month), to handle staff meetings, special events coordination, some bookkeeping/accounting, and general oversight. The majority of the day to day tasks and actual barkeeping is handled by the 3 employees.

This is primarily a day bar and generates the majority of its business on the weekends, catering to a healthy mix of both locals and travelers alike. The business also holds an Event Permit (Type 77), and a Caterer’s Permit (Type 58), which are used infrequently but can provide huge upside potential if utilized. There’s no kitchen on the premises so there’s no need to manage equipment or staff someone to operate it. Any food prep is done on a barbecue pit or with a Turbo Chef oven. All of the food is ordered through Sysco for easy management and to cut down on any unnecessary logistics. Overall it’s a very straight forward, manageable business model and no specific industry experience is required. Current owner will happily stay on for a period of time to provide sufficient training and support to ensure a smooth transition.

Revenue sources include: beer, wine, and hard alcohol sales, food sales from a simple easy to manage bar menu, income generated through the juke box and pool tables, and operating a mobile bar at select events.

The bar is heavily invested in conducting live events throughout the year to bring in big crowds. The events include car and motorcycle shows, barbecues, live bands, radio events, steak dinner night, and customer appreciation Sundays. The events have significantly increased exposure and driven up business on otherwise off nights. The possibilities to add additional events or expand on the already existing ones are endless.

The bar benefits from an eclectic customer base and loyal following. The majority of the clientele is derived from repeat customers. There is a healthy mixture of locals, casino customers visiting from only 1.5 miles away, cyclists, a traveling crowd, and an influx of new customers resulting from 2 brand new housing developments nearby. The new developments are comprised of approximately 300+ homes, and approved commercial development will be following suit. The potential for growth is exponential.

The employees are all well experienced, and handle most of the daily tasks associated with operating the bar. The lead bartender also assists in some of the managerial duties such as picking up product from suppliers, doing weekly inventory, and making bank deposits. One of the employees has been with the business for over a year, and the two others have been onboard for 2.5-3 years. Very consistent workforce and low personnel turnover. The employees know of the sale and are open to staying on under a new owner for a seamless transition.

2016 experienced $271k in gross revenue with $45k in net profit and is still continuously growing. Overall sales have increased year over year since the bar’s opening, and the business is on pace to surpass 2016 figures this year as well. Less than 25% Pour Cost and a lean, efficiently run business provides for very healthy margins on both the gross and net basis. The business is consistently generating a healthy revenue even during the slow time of year. 0 debt or lease obligations for any of the FF&E or inventory; everything is paid off and owned outright. Well maintained bookkeeping and financial records have been kept over the life of the business. All stated figures are fully verifiable and any financial documents will be provided upon request.

Tons of upgrades were made to the premises under the current owner, including a new bar top, shelving, signage, lighting, electrical, ac unit, camera system, pos system, lots of patio investment, and much more. Will gladly supply an itemized list of all upgrades if requested. All of the furniture, fixtures, equipment, and current inventory is included in the asking price. Over $50k in value. The business is truly being listed for below the replacement cost of all the assets and improvements.

This is an ideal business for someone who wants to step into a turn-key operation that is already cash flowing, or someone who wants to owner-operate and increase the net profits even further. The business can be run from afar, as the employees are already accustomed to running it, or be operated more hands on if desired. It’s a very organized business and doesn’t require a tremendous amount of effort to operate.

Detailed Information

Inventory:
Included in asking price
Real Estate:
Leased
Building SF:
2,000
Lease Expiration:
N/A
Employees:
1 FT / 2 PT
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
Building is 2,000 sq ft of total space, which includes inventory storage area and a small office. There is a large outdoor patio space, and ample parking sufficient enough to accommodate large groups for special events. Owner has taken huge pride in ownership by keeping the space extremely clean and well maintained.
Competition:
Nearest competing bar is 15 miles away in one direction, and 12 miles away in the other. This is truly a unique bar in an exclusive high traffic location with no direct competitors in the area.
Growth & Expansion:
Huge potential for continued growth and plenty of upside for a new owner to drastically increase revenues and net profits: 1) Working the bar as an on-site owner operator would not only cut labor costs, but would increase bottom line profits another 20-30%. A hands on owner operating the bar a little leaner could increase the net yield from $45k to $60k/year. 2) The hours of operation can be modified to cut unnecessary labor costs at idle times of the day. Currently the bar opens at 11am every day and closes at 10pm Sun-Thur. Those hours can be either expanded or decreased in order to generate more business or cut needless overhead. 3) Huge upside in pursuing catering gigs with the mobile bar. The business currently has a permit to operate this portable bar up to 24 times a year at outside events. Current owner has not exploited this opportunity to it’s fullest potential. There is plenty of additional revenue being left on the table by not putting it to consistent use. 4) Quite a few brands are kept on the shelf compared to other bar owners, and much of the liquor is purchased by the case. The selection of available brands kept in inventory can be trimmed and optimized to reduce any unnecessary purchases so that margins are increased and expenses reduced. 5) Bar Menu has not been pushed or promoted at all. There’s huge opportunity in promoting the menu and/or tying in special deals/promotions to increase sales. 6) Outside of live events, additional marketing efforts have been minimal. A new owner could increase awareness and expand on the current events the bar hosts by directing more resources to marketing the business.
Financing:
None
Support & Training:
2 weeks in person + 2 weeks of ongoing consultation.
Reason for Selling:
Moving out of state
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Dehlan Group

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Dehlan Group

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