Business for Sale--Utah Natural- And Gourmet-Foods Market And Cafe
BY Robina A. Gangemi
An overview of a business offered for sale includes price rationale, outlook, and pros and cons.
The Business Coffee and tea are off the menu for some 75% of Utah's population, but for 22 years members of that group, along with other area residents, have been satisfying their hunger for natural foods, spices, and vitamins at this market-cum-espresso-bar. Sales of coffee now represent 61% of the operations, despite the Mormon ban, and the sellers are expanding the kitchen to feed the need for roasted coffee beans. Wholesale and mail-order customers select from more than 100 coffees and 85 teas, and contribute 30% of revenues. Frequented by denizens of the nearby university, the popular shop continues to prosper. The sellers, coffee aficionados, want to be closer to a source: Hawaii.
Recast earnings before depreciation, interest, taxes, and owner compensation
Outlook Natural-foods stores appeal to 5% to 10% of the population, a group that has been gathering strength (growing about 12% each year since 1987), fueled by aging baby boomers, 12-million-plus vegetarians, and others with heightened nutritional awareness. Nevertheless, when the owners of this business spotted retail competition sprouting on their turf, they redirected resources from the market to the cafÈ and the bean-roasting business. Smart move: 77.5 million Americans, 31.1% of the population, bought specialty coffees and teas in 1992, up from 22 million in 1990, and the industry is expected to percolate up to the $5-billion mark within five years. The shop's sales have increased for the past seven years even without the owners' full-time attention.
Price Rationale The asking price is based on cash-flow analysis and includes the land, the building, and everything for the turnkey operation except $30,000 worth of coffee-bean inventory for the wholesale business. Given the cash flow; the real estate (appraised at $90,000 to $95,000); and furniture, fixtures, and equipment (with an estimated fair market value of $42,000), the price falls within the reasonable range, $206,000 to $230,000. Terms are negotiable, and the sellers will break out any segments of the business the buyer doesn't want.
Pros You can run a well-established business, sip your morning cappuccino amidst bucolic beauty, and eat healthfully.
Cons Could you live in rural Utah and give up Twinkies? -- Robina A. Gangemi
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 Affiliated Business Consultants, 719-540-2200.