Financial summary and brief description of Florida billiards room.
The Business A four-year-old upscale billiards parlor located in a young, affluent, and growing city in southeast Florida. Sixty percent of revenues come from the hourly rental of 17 tables, 35% from beer and wine sales, and the rest from darts, cue and pool-supply sales, and some snack concessions. The clientele is predominantly local (this city doesn't see much of Florida's tourism) and supports a 13-team league. The owner is selling because his partner has relocated.
Outlook Recently, pool has adopted upmarket airs. Today's brass-and-dark-wood billiards centers are a far cry from your classic smoke-and hustler-filled pool hall. And their numbers are growing at a rate of one a day, versus one a month in 1986. The number of players is growing, too; billiards is now the third-most-popular participatory sport in the United States (after bowling and basketball), with 39 million players. This room is typical of its industry in many ways: total sales, room size, number of tables, number of years in operation. But since its table rate of $2.75 an hour is below the industry average of $4.25, the room must be seeing above-average traffic to reach the revenue norm.
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Price Rationale Eight months ago, when this place hit the market, the asking price was $225,000, which the seller got by taking his $198,000 setup cost, then adding the brokerage fee plus a little extra. By all expert accounts, the new price is slightly high; with a heavy-assets business like this, three times earnings is a common multiple.
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Pros Nice digs in an affluent market. A number of areas in which to expand sales. (Most operators expect alcohol revenues to equal table rentals.) Plus you'll have a chance to fine-tune your massÉ shot whenever you want.
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Cons The five-year-long-and-counting pool boom may be supply-driven; there have been shakeouts in some markets, and insiders anticipate more. You may find yourself competing with the Florida weather. And all that blue chalk is murder on the shoes. -- Christopher Caggiano
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Inc. has no stake in the sale of the business featured.The magazine cannot confirm the accuracy of financial or other information offered by the seller. Inquiries should be directed to Russ Lockwood Realty, 800-881-2660.