MANDATE REPORT

1. History Background

Fully describe the business's activities

This business operates as an upmarket Tea Garden with a Gourmet menu yet with low priced menu.  The seller has settled this Tea Garden in this park in the heart of the diplomatic hub.  As an owner run business it evolves around the owner and three staff.  A full liquor license is in place.

How long has the business been established?

August 2011, but was established for many years before closed for 3 years and then reopened.

How long has the owner had the business?

Since August 2011

What steps are in place to solve "load shedding" problems

N/A

2. Present Market

How does the business operate on  a daily basis

Owner run.

How are the clients attracted to the business

Various Website list the business. Many refer to it as a place to visit in Pretoria.  The park is also a favourite for residents in the area and the park is a draw card.

What Advertising/Marketing is carried out

They have a Facebook Page, and sometimes do some marketing

Does the business have any contract work

No, but they have done various functions in the past for businesses

What competition exists

Two restaurants some 500m away in a small centre, nothing in the park.

What are the seasonal trends

Quiet in January and winter months also less clients although people like to sit in the son on winter days

3. Financial

Is the business VAT registered?

No

What VAT documentation is on file?

N/A

Are there up to date Management Accounts available?

POS and other information

Balance Sheet and Income Statements?

No

What Percentage of the business is cash/credit card/credit?

Credit Card and cash, no accounts.  Credit Card and Cash is a 50% split

Age Analysis?

N/A

How can it be more profitable

By linking back into the tourist like it was in the past with buses stopping here.  The opportunity to tap more into the businesses in the area, having a food delivery arrangement for these businesses.  One can also sell curios and other items like clothes to tourists already frequenting the premises.

Seller Finance available?

No

4. Staffing

What is the total staff complement?

3 staff

Staff Breakdown and length of service

1 Kitchen lady, 1 Chef, 1 Waitress

Do any receive special perks, bonuses or incentives?

No, waitress get tips over and above salary.

Are they on contract?

Yes

Do any have management potential?

No

How involved  is the Owner in running the business

Owner run currently

4. Premises

When does the current lease end?

IMPORTANT - The lease will be discussed with the buyer.

Is there an option of renewal & what period

Until 2016 with another 5 year option.

What is the annual escalation %?

10%

What are the trading hours?

Monday Closed

Tuesday – Sunday 08:00-16:00

What is the square meterage of the business?

+/- 21.5m2 plus 162m2 paved area

Is a copy of the lease available?

Yes

Do you require a licence?

IMPORTANT - The full liquor license and the lease will be discussed with the buyer

6. Assets

Is a full asset list on file?

Yes

Are any items not included in the sale?

Only small personal items

What is their overall condition?

Good

Do any require repairing?

No

How have they been valued?

Replacement

Which assets are on lease/HP and with whom?

None

What are their settlement amounts?

N/A

Will Seller settle or Buyer to take over?

N/A

Are copies of agreements available?

N/A

Are they presently insured?

Yes

4. S.W.O.T. Analysis

Strengths

Cheap Rent, very low overheads, park setting, no competition.

Weaknesses

Small indoor space

Opportunities

This is opportunity knocking for the right operator.  You can do so many things with this venue and if pitched just right it can be a money spinner.  Just fix the food cost structure/menu for a start with current clients and you will be profitable

Threats

Lease arrangement

What is the reason for the sale?

Seller wants to relocate to the coast.

Why is this a good business to buy?

This is one of those nice little opportunities not to be missed.