Attractive And Lively Cocktail Lounge For Sale

Business description

Launched just over two and a half years ago, this independent, fun loving cocktail lounge is ideally located in a prominent position in this affluent North West London suburb. Converted from an almost derelict building – formerly an Indian restaurant, this business is located within easy reach of both the West End and the City and has rapidly attracted a dedicated following amongst a more mature, twenty and thirty something affluent target audience that live in the surrounding area, giving them a compelling reason to stay closer to home on their evenings out. Open evenings only, throughout the week, whether for a lively celebration – or simply to enjoy cocktails with friends, this outlet gives customers all they are looking for in a sophisticated and stylish setting.

Spread over two floors, the décor is stylish, contemporary and has plenty of comfortable seating. Lively and popular, this outlet offers a classic cocktail bar with a huge range of cocktails, each one made to the right specification. This business also offers an extensive snack and light bites menu providing a wholesome range of food ready to fill the biggest of appetites. Popular snacks include vegetarian satay, cheese and onion goujons, samosas, spring rolls, chicken dippers, nachos and potato wedges with a wide range of burgers, fajitas, sandwiches, savoury crepes and salads amongst the main meals with spicy chicken wings a particular speciality, all freshly made to order using only the best, fresh ingredients.

It is perhaps for its dessert menu, however, where this venue stands out from the rest. Whereas most restaurants or eateries see desserts as just another section on the menu – desserts are the passion of this business. With most desserts made in house to closely guarded recipes – customers here enjoy a unique experience that opens up the imagination and tempts the wildest of taste buds. Crepes, sundaes, waffles, speciality ice creams, cheesecakes and pancakes are all readily available – the perfect accompaniments to a classic cocktail or a creamy coffee with shishas and a wide range of fruity flavours available to round off the night.

In just over two and a half years this business has built up a dedicated following which in the current financial year will generate approximately £300,000 per annum in turnover with a gross margin of nearly 70%. With pre-tax earnings in the region of £110,000 this represents an excellent opportunity to acquire a cocktail lounge which whilst well established has significant on-going growth prospects.

Key strengths:

This is a well thought through and planned concept. From the actual location itself a prominent position on the High Street ideally positioned to access a target audience that is used to visiting West End and City bars and clubs – and therefore understand what the business is trying to achieve, right through to the pricing policy for the drinks, its extensive food menu and high quality service but perhaps most of all its focus on desserts as a way of differentiating itself from all the other bars on the High Street. Put simply this business has worked very hard at ensuring its customers have no excuse not to visit ensuring there’s something for everyone. It is a philosophy that is paying dividends particularly in the current economic climate with its clientele less inclined to go into the West End, to pay very expensive entrance fees and be charged for equally highly priced drinks.

Key opportunities:

There is a tremendous opportunity to build on the existing base of this business. With a strong local demand for its offering, there is the capacity to increase turnover and profitability for a new owner contributing fresh ideas, outside influence, enthusiasm and motivation.

Relatively speaking this is a venue that has only recently opened. As such the business has not yet fully benefitted from all of the initiatives that the current Owner has undertaken to promote the venue to its target audience.

There is certainly scope to extend its opening hours to include lunchtimes, between 10.00 am and 3.30 pm, for example – particularly with a number of large employers including the local Council offices within its immediate catchment area. The venue itself could be much better utilised – with currently only one of its two floors used to its fullest extent. Some work has already been done to promote the venue for parties and functions which would be very well accommodated in the basement area – and the current Owner has plans to install a large screen downstairs for showing leading sports events – with cricket in particular a major attraction for regular customers.

Financial information:

The business is offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

Projected annual turnover is approximately £300,000 per annum with a gross margin of nearly 70% and earnings available to the Owners of the business in the region of £110,000

The Asking Price of £360,000 is for a sale of the assets and goodwill in the business and reflects the significant investment the current Owners have made in refurbishing the premises.

Property information

Property:

Leasehold

Lease terms:

The residential accommodation currently generates approximately £15,000 per annum in rents.

Location:

This venue is ideally situated on a busy High Street in a North West London suburb. As such it benefits from high levels of awareness and passing traffic. Converted to a high standard from premises that were almost derelict when this business moved in, this venue has been decorated to create a very welcoming and comfortable atmosphere.

Across two floors, the ground floor, approximately 1200 square feet, is used as the main Cocktail lounge incorporating the bar area itself with seating for approximately 50 people, the kitchen and WC with a further 1200 square feet available in the basement/function room with an additional capacity of between 70 to 80. The fully fitted commercial kitchen is more than adequately equipped to prepare the excellent menu this outlet offers.

There is also a garden area to the rear with a capacity of 36.

With all the necessary licenses, the premises are leasehold with approximately 12 years remaining and include residential accommodation to the First Floor which - 6 individual bed sitting rooms with shared bathroom and toilet facilities. The residential accommodation currently generates approximately £15,000 per annum in rents.

Other information

Competition / Market:

Aware that every bar needs to develop its own core following to really ‘take off’ and the enormous marketing and advertising expense that that can incur, this business works closely and very cost effectively to build relationships with its customers to encourage them to return through its doors using on-line community and networking sites to communicate with its customers outside its normal operating hours. More broader advertising and promotions have involved highly targeted local radio sponsorship and promotional campaigns and ambient media opportunities in the local catchment area. The business has also built a very effective database of customers which it uses to communicate special promotions, birthday celebrations etc and has a loyalty card scheme in place to promote its food offering, in particular. The business has a very well designed and informative, easy to navigate website which performs very well in all the major search engines for all appropriate search terms also harnessing the power of the web through frequent viral advertising and marketing campaigns. But by far the most effective form of marketing for this business is the strong word of mouth recommendation the business enjoys and its high levels of repeat custom, testimony to the enjoyable and relaxing time its customers have whenever they visit.

Support & training:

The owner will provide full business familiarisation, training and handover.

Reasons for selling:

Haven established the business and taken it to its current stage the Owner feels it is time to pass it across to new owners to build on the excellent foundations already laid.