Growing Restaurant Delivery Takeaway business in Cotswold City Centre for Sale

Introduction Summary

This small business has grown continually since it was first established in 2017 and has an excellent reputation with a high volume of regular customers and low seasonal swing in turnover.  It is ideal for an owner/operator or family-run business, either as a first hospitality business or to add to the portfolio of an existing hospitality owner.   

Due to it's size and location, the business benefits from 100% relief on business rates (NOT connected to Covid-19 grants or rebates) and utility costs are approximately only 5% of turnover. The current lease with a private landlord has just been renewed and runs until 2030 (with a midway break-point).  It is located in the heart of the city's massive redevelopment plan which is nearing completion and is located directly opposite a new university campus which is due to open later in 2024. 

PLEASE DO NOT MAKE ANY IN-SHOP ENQUIRIES (in person or by phone) REGARDING THIS SALE EVEN IF YOU HAVE IDENTIFIED THE BUSINESS - ALL INITIAL CONTACT TO BE THROUGH THIS CHANNEL PLEASE.   

NB The owner will only respond to enquiries from individuals and will not respond to agenices, other marketing companies or financial investment companies etc.

The business is located in the city centre of Gloucester, in a street which has 100% occupancy of shops.  It is located within: 

• 100m of the newly-redeveloped Kings Square (city centre seating area and events space)
• 200m of the soon-to-be-opened Forum development (hi-tech office space, hotel, car parks and restaurants etc) 
• 300m of the main, recently developed new transport hub (bus and coach station)
• 400m of the currently being re-developed Train Station
• 500m from Kingsholm Stadium (Gloucester Rugby Club's ground)

As part of the massive redevelopment of Gloucester City Centre, the main sign-posted route into the city centre, Cathedral quarter and Kingsholm Stadium for visitors by car, bus and rail wil be via Kings Square and street in which this business is located.

Most significantly, The University of Gloucestershire has purchased the former Debenhams building directly opposite this business and is scheduled to begin opening as a campus (NOT Halls of Residence) from Autumn this year - 2024.  There is a covenant on the property to ensure that the ground floor is kept primarily for public use - as a result, the main Gloucester Public Library is scheduled to be moving from it's current location to this new location later this year. 

The business premises are in very good decorative order and the furniture/equipment (included in sale) is also all in very good condition.  The barrista machine, dishwasher and Coke fridge are rental, but everything else is owned and included.  The business currently uses a speciality hospitality-industry ePOS till system (monthly rental for the package).  The hardware is included in the sale price (iPad, printer, till drawer, card machine etc) and the new owner could take over the software package if desired.

The premises currently comprise of 20 indoor seats and 9 outside seats.  The premises has always been granted a pavement licence by the City Council without any difficult.  

The premises has very secure rear windows and doors (it used to be a jewellers shop!) and a full electronic security roller-shutter for the front.  The premises are currently not licensed to sell alcohol but due to the excellent security options, it is not expected that obtaining such a license would be difficult if required.

The business currently trades from 7.45am to 4.00pm Monday to Saturday (3.30pm Saturday).  Although it's core trade is currently 'dine-in', during the past four years, the current owner has also developed:

• a regular takeaway trade of local traders and city centre workers (who then recommend the business to their customers or colleagues)
• a delivery/small buffet arm of the business (it is the preferred supplier to Gloucester Cathedral's clergy-training 'college')

The main food menu currently offered is based on:

• breakfast items ranging from snacks such as porridge up to an all-day breakfast
• cakes, traybakes, buns and other similar 'counter items'
• lunches (rather than full meals*) including ploughmans lunches, quiches, soups, sandwiches, jacket potatoes - all served with garnishes etc
• Cream teas and afternoon teas

The nature of the food served and size of the premises means that utility costs are only approximately 5% of monthly turnover.

The business currently serves a very high quality coffee and attracts coffee 'afficianados' as a result.  It is also renowned for using high quality bread, cakes and  baked-products from local suppliers.

The business has met and exceeded it's trading targets every month since re-opening after the Covid shutdowns and has seen consistent growth in the number of customers. Seasonal swing is only approximately 10-12% across the year, making it easy to manage cashflow and to be able to consistently offer sufficient hours to employed members of the staff team.  The business has very high ratings on the various review sites and has been awarded Trip Advisor Certificates of Excellence for the past two years placing it in the top 10% of similar businesses across the world for it's reviews.  The business has a very high percentage of repeat, regular customers.  It has also held a 5* hygiene rating from the Food Standards Agency for it's entire duration of trading.

Opportunities to add value include:

• Price point is VERY competitive compared to local comparable 'rivals'.  There has been very little price increase since pre-Covid as the business has been able to meet it's financial operating targets by continually growing it's customer base.  This means that a new owner would have no difficulty putting in a sensible price increase if desired as the current prices are perceived as incredible value for money.
• To open on Sundays.
• To further develop the delivery aspect of the business.  Currently, the business does it's own deliveries using a small, liveried, electric vehicle (not included in the sale but would be available to purchase separately if desired).  The new owner could increase this aspect of the business by signing to a food delivery company if desired.
• To further develop the takeaway business, particularly by offering a generous loyalty or membership package to university students and staff.
• To open into the early-evening to catch the end of university/business day trade.

The lease was renewed in 2023 and is currently until June 2030 with a break point mid-way through.  The landlord is one of the few remaining private landlords of city centre retail property and is very supportive and approachable to the business owner.

The main reason for sale is that the current owner has another business interest (non-hospitality) which they would like to pursue as and when the time is right  (rather than due to retirement or illness).  Therefore, they will only sell on mutually acceptable terms.  

An agreed level of handover support and training can be available to the new owner if required.  The current owner would also consider providing a limited amount of relief cover (paid) during the first 12 months of new ownership in order to allow the new owner to meet exisiting family/holiday commitments.

More detailed financial and operational information will be made available to serious prospective buyers in return for a confidentiality agreement being signed and proof of ability to purchase being provided.  This business is a rarity within it's sector where so many similar businessed have been struggling and many have closed - the owner will not reveal commerically sensitive information unless satisifed of genuine interest and ability to purchase.

Summary:

This is an excellent opportunity to acquire a proven, growing business situated in a prime location.  The owner is open to limited negotiation and would consider partial deferred payment of up to 10% of purchase price (if purchased at full value) in order to enable the new owner to have a higher level of initial working capital.