How does the business operate on a daily basis?
The business sells every kind of product one would expect to find in a convenience/grocery store and has a liquor licence and a kitchen for take-aways.
They are open from 7am to 11pm daily and therefore offer huge convenience.
The business is run on two shifts. An assistant manager and cashier are always on duty and the kitchen assistant and general assistant works during the day Monday - Saturday.
The owner works flexi time.

How are the clients attracted to the business?
The store has been in its current position for many years and is well known in the area.
The only advertising that is carried out is at the front of the shop.

What Advertising/Marketing is carried out?
None

Does the business have any contract work?
No

What competition exists?
There is a Checkers store in the adjacent street but further up from them which has been there for many years.

What are the seasonal trends?
Summer months are busier but the financials will show that there is not a relevant fall off in winter. The store attracts the custom of many international tourists due to its location to hotels, guesthouses and AirBnB's.

Is the business VAT Registered?
Yes

What VAT documentation is on file?
Up to date VAT documentation is on file and will be presented during due diligence.

Are there up-to-date Management Accounts available?
Detailed up to date Management accounts are available.

What Balance Sheet and Income Statements are available?
Up to date Balance Sheets and Income statements are available.

What percentage of the business is cash/credit?
100 % cash via cash/Credit card/Snapscan.

What is the age analysis of the debtors book?
No Debtors

How could the profitability of the business be improved?
Profitability would be substantially increased :
1. By expanding the take-away offering for lunch service, opening the kitchen at night for dinner take-aways, offering sit down options, coffee and more baked goods.
2. Expanding the product offering to present more deli-like options.
3. Additional services like MY City, or drop off point for courier services etc.etc.

Is Seller finance available and for what amount?
No

What is the total staff complement?
1 x Owner
3 x Cashiers
2 x Kitchen assistants
1 x Office administrator

Give a breakdown of staff/ functions/ length of service?
2 x Kitchen assistants . Oversees and prepares all take-aways. 1 x 20+ years ; 1 x 6 months
3 x Cashiers. 1-4 Years.
1 x Office Administrator - 2 years - POS updating, pricing, buying, office filing etc.

Do any receive special perks or incentives?
No

Are they on contract?
All permanently employed

Do any have management potential?
Yes - to be discussed

How involved is the Owner in running the business?
The owner spends time in the business daily but is mainly involved in the administrative functions.

When does the current lease end?
31 May 2027

Is there an option of renewal & what period?
Yes - 5 years

What is the annual escalation %?
9% . Escalation in March.

What are the trading hours?
7am to 11 pm 7 days a week.

What is the square meters of the business?
Approximately 220 sq metres

Is a copy of the lease available?
Yes

Do you require a licence?
A liquor licence will be transferred to the new owner.

What lease deposit and/or other surety is required?
To be discussed with landlord.

What are the main assets of the business?
A comprehensive asset list is available.

Are any items not included in the sale?
All included

What is their overall condition?
Very good. A number of main assets have been replaced.

Do any require repairing?
No. They are all maintained under a maintenance program.

How have they been valued ?
Fair market value

Which assets are on lease/HP and with whom?
Coffee machine rental
Titan Point of Sale System lease

What are their settlement amounts?
As per the management account

Will Seller settle or Buyer to take over?
Buyer to take over

Are copies of agreements available?
Yes

Are they presently insured?
Yes

Strengths?
The business has been in the area for 30 years and is very well-known as a convenience destination with a loyal following among the locals, and employees of the surrounding businesses and practices, and with the added benefit of tourist custom.
It is situated in a vibrant, densely populated, high-income area and was able to trade throughout the different lockdown levels.
The business has a liquor license as well as a takeaway kitchen which attracts additional custom.

Weaknesses?
Very little effort is spent on advertising, social media and specials. The kitchen is not utilised to its full potential.
No representation on online delivery platforms.

Opportunities?
Draw in more early morning customers with a coffee offering with an improved sit-down veranda area..
Improve the outside sit-down area to attract more customers.
Offer a lunch service.
Develop a ‘deli section’.
Explore other income streams such as drop off\ collection for courier services.
Offer delivery using platforms like Mr D for food, groceries and wine.

Threats?
There are no major threats.

What is the reason for the sale?
Although the business is highly successful, the owner has chosen to follow a different career path.

Why is this a good business?
This profitable convenience store is situated in an ideal position, has no competition, and is making an excellent income for its owners.

What is the price plus stock and the profit
Selling Price : R 2 100 000 EXCLUDING stock.
Stock : R +- 300 000 - to be paid for in accordance with stock take results on the effective date.
Net profit from December 2023 to November 2024 : R 844 090