Gourmet Popcorn Shop (SOLD) - NEO Business Advisors
Case Study of Recent Transaction

Gourmet Popcorn Shop (SOLD)

NEO Business Advisors represented the seller of a gourmet popcorn shop business with retail store space in a high-end shopping area, e-commerce web store and a food truck.

Asking Price:
$150,000
Gross Revenue:$250,325
EBITDA:N/A
FF&E$38,788
Cash Flow:
$54,500
Inventory:$12,400
Real Estate:$3,364/month
Established:2009
Gourmet Popcorn Shop

This Business is SOLD!

Gourmet Popcorn Shop business with retail store space in a high-end shopping area. The business also has a food truck for special events and booked 21 events with the food truck in 2019 which they believe a new owner can continue to grow. The business also sells online through an e-Commerce website which can be built on through improved marketing, SEO, and targeted pay-per-click advertising.

The business has been established since 2009. The current owner was an employee of the business prior to purchasing the business with a partner in September 2018. The current owner is looking to sell the business now due to changing family needs and a need to focus time on another business they are involved in that is consuming more of their time.

The business currently operates with 6 part-time employees, one of whom is long term and capable of performing all tasks the owner currently performs. Some seasonality exists in the business with the busiest time being the holiday season building to peak sales in December. There is then a period of two months that are very slow as the business comes into spring and special event bookings with the food truck begin to offset the seasonality.

Revenue by Year:

2019 Revenue $ 250,235

2018 Revenue $ 279,883

2017 Revenue $ 309,810

Seller’s Discretionary Earnings (SDE) by Year:

2019 SDE $ 54,500

2018 SDE $ 100,258*

2017 SDE $ 52,632

3 Year Weighted Average SDE $ 69,441

*2018 SDE is inflated because it is a blend of the books from the old owner and the current owner including the sale from the old owner to the current owner. 2017 and 2019 SDE are more realistic expectations of actual performance of the business.

Furniture, Fixtures, and Equipment (FF&E) of $38,788 are included in the asking price. The assets include kitchen equipment (including popping kettles, caramelizers, mixers, and kitchen accessories), the food truck, furniture and displays in the retail store and office equipment.

Inventory of $12,400 is also included in the asking price including raw materials, supplies, popcorn tins, containers, and other packaging materials.

Real Estate is a leased retail store front in a high-end retail shopping center. The current lease is $3,364 / month and includes a large 1,716 square foot retail space with shelving, counter, and displays. A kitchen/preparation space is up to date in the rear portion of the building along with a public restroom and a small office space for day to day management of the business. There is also a small amount of storage space included in the lease located in the basement of the building for additional inventory storage of dry goods like tins and packaging materials.

Some Details of the Transaction Remain Confidential

Detailed Information

Location:

Summit County, OH

Inventory:

Included in asking price

Real Estate:

Leased

Building SF:

1,716

Lease Expiration:

N/A

Employees:

6

Furniture, Fixtures, & Equipment (FF&E):

Included in asking price

Facilities:

Real Estate is a leased retail store front in a high-end retail shopping center. The current lease is $3,364 / month and includes a large 1,716 square foot retail space with shelving, counter, and displays. A kitchen/preparation space is up to date in the rear portion of the building along with a public restroom and a small office space for day to day management of the business. There is also a small amount of storage space included in the lease located in the basement of the building for additional inventory storage of dry goods like tins and packaging materials.

Competition:

Other gourmet popcorn shops exist in the area, but this company has positioned itself in a high-end retail shopping center in an area with high annual household income and have differentiated themselves with the additional services of a food truck for special event rentals. They booked 21 events with the food truck in 2019. The owners anticipate this will continue to grow with additional marketing of special event services.

Growth & Expansion:

Market the food truck for special events. Target corporate accounts with real estate agencies, car dealerships, and other business partners. Offer additional complimentary products. They currently sell old-fashioned candy and private labeled old-fashioned sodas as additional revenue sources in store. Grow the online business through additional marketing, improved SEO, and local pay-per-click advertising.

Financing:

up to 20% for qualified buyer

Support & Training:

Owner is including 4 weeks transition training included in the asking price.

Reason for Selling:

Owner is selling due to changing family needs and to pursue other business interests.

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