Highly Profitable Modern Designer Bakery
2022 Gross sales $1,271,811 adjusted net $428,233 SBA approved
Specifications
 |
Price: $1,000,000 |
 |
Revenue: $1,271,811 in 2022 |
|
Cash Flow: $428,233 in 2022 |
 |
Location: East Bay South |
 |
Service Area: Greater Bay Area |
 |
Adjusted Profit Margin: 33.7% |
 |
Employees: 16 PT (plus 2 owners) |
 |
Reason for Sale: Pursue other interests |
 |
Goodwill: 4.6 star Google rating. 4.5 star Yelp rating |
| Year Established: | 2018 |
| Services: | Donuts, pastry, and coffee. |
| Furniture, Fixtures & Equipment: |
40qt planetary mixer, 24”x24” fryer, proofer, combi oven, dough divider, table top sheeter, 2 group espresso machine, Square POS, 48” range, refrigeration, work benches, etc. a full list will be included in the business memorandum following the executed NDA. |
| Delivery Service: | Third party delivery utilized |
| Clientele: | 100% Retail |
| Facility & Lease: |
1820sf at $8,225 per month including CAM. 10-year lease (started 09-2018) with 2 five (5) year options. Security deposit is $6,606.60, lease is assumable to a qualified buyer. |
| Personnel: | 2 owners, 9 bakers, 7 customer service |
| Software Used: | Square POS |
The establishment presented for sale is an artisanal French-themed donut and pastry bakery that has rapidly gained traction and prominence within its market. Its success can be attributed to the sellers’ adeptness in curating a diverse assortment of specialties and flavor profiles, meticulously synchronized with the changing seasons and diverse holidays.
A hallmark of this bakery’s excellence lies in the professionalism and proficiency of its well-trained staff, seamlessly navigating the demands of a fast-paced schedule while maintaining impeccable quality in their craft. The high-end pastries crafted here have garnered significant acclaim, particularly within the Bay Area, becoming recognized for their distinctiveness and sophistication.
Operational efficiency is another key aspect that sets this establishment apart. Production diligently operates five days a week, while the bakery is open for business on four days a week. Despite the limited operating days, the establishment has demonstrated exceptional financial performance, generating gross sales surpassing one million dollars and achieving an adjusted net income exceeding $400k.
Within the local pastry community, this bakery stands as a paragon of excellence, coveted for its superlative product quality, impeccable presentation, and the astute management of its operating hours. Its success serves as an inspiration to others, showcasing how astute business practices, combined with unwavering commitment to craftsmanship, can lead to remarkable achievements in the culinary industry.
Value Proposition
- 5 years of Established Reputation
- Exceptional Customer Reviews of 4.8 stars
- 33% Profit Margin, $428,000 Adjusted Earnings
- Priced at Market multiple of 2.34x•Operates on 4 sale days a week
- Year over year increase average is 17% (not including 2020)
- Experienced Team of Bakers and Sales Staff
- Buyer to Replace Sellers in daily operations
- Systems, Concept and Atmosphere could be duplicatable
- Highly attractive website and robust ordering system
Revenue Breakdown
Financial Highlights
- Listing Price: $1,000,000 + Inventory
- 2022 Cashflow (SDE): $428,233
- 2022 Gross Sales $1,271,811
- Business opened 2018 gross sales $206,499
- 2019 Gross sales $902,092, Net $217,190
- Suggested Working Capital $125K
- Inventory as of May 31, 2023 $16,500
- Security deposit $6,606.60
- $365,527 in FF&E and TI Included in asking price
- 2023 projected sales over $1.4M
- $200,000 growth year over year at 4 days a week open
Cashflow Analysis
Asking Price
The asking price is determined using a cash flow methodology. Cash flow is the sum of net income from the business plus any non-cash expenses, non-recurring items and any seller’s personal expenses. A multi-factor multiplier is applied to the cash flow based on the condition of the business.
For this business, as they are experiencing a high growth rate and operations are 4 days a week making this a very desirable business, last year’s numbers have been used as the basis and then applied to the average multiple of 2.34X based on research and comparable historical sales found from the data base in Gulf Coast Financial.
This business has been pre-approved by SBA.
Funding Example
Purchase Price: $1,000,000
10% Buyer Down Payment
$110,000
Buyer’s Equity
90% Bank Loan
$890,000
10-Yearterm at a rate of 11.50% = Monthly loan payment of $12,513
- Cash Flow (SDE in 2020): $428,233
- Annual Payment to Bank: $150,156
- Net Profit (After Expenses and loan payment): $278,077
* Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.