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Profitable Dessert Parlour For Sale

Warwickshire, UK
Asking Price:
£100K - £200K Furniture / Fixtures and Inventory / Stock included
Turnover:
£200K - £500K
Net Profit:
£50K - £100K

Our client is a dessert parlour offering a collection and home delivery service from its branch in Warwickshire.

Setting out from the beginning of trading to compete on quality and not on price, this dessert parlour has captured 80% of the market in its hometown and the surrounding areas according to statistical analysis provided by marketing partner, JustEat.

Following a £60,000 initial refit to kit out the company’s premises with attractive signage, a welcoming holding zone for walk-in customers, and sufficient space for the staff to work in, the company has enjoyed a very profitable first 12 months of trading.

The company turned a 17% net profit in its first year of trading on a turnover of slightly over £250,000. The staffing situation is now very stable following a period of tumult after opening during which uncommitted employees were let go. The current team are efficient, precise, and reliable.

Products

Our client offers the following types of desserts and sweet treats:

• Box Meals
• Pancakes
• Sundaes
• Treat Boxes
• Cookie Dough
• Cheesecake
• Meal Deals
• Deluxe Cookie Dough
• Chocolate Brownie
• Pick Your Own Waffle
• Classic Milkshakes
• Ben & Jerry's Ice Cream
• Deluxe Waffles
• Milkshakes
• Gelato Ice Cream
• Waffle Sandwich
• Premium Milkshakes
• Sides
• Pretzel Bites
• American Milkshakes
• Drinks
• Bubble Waffle Smoothies

The products sold are a mixture of pre-prepared products (many of which are later repackaged to display our client’s branding) and products made by the contractors who work in the shop.

Routes to market

The company’s primary sales channel is foodservice ordering and payment app, Just Eat. Through an easy-to-use interface, our client uploads the shop’s menu to the app. Clients then select the dishes they want from the menu and pay for their orders. Each order is then individually received as a ticket print-off and an in-app message within the store. Customer payments are made direct into our client’s business account once a week by Just Eat.

The company uses App4 to provide a direct-to-shop app and website allowing customers to order without having to use the JustEat app. Charges for this service are substantially lower than JustEat. Payments are received every day from The merchant service provider when applicable. To encourage consumers to order direct, our clients offer a voucher for every £1 spent. When a consumer has amassed 100 vouchers, they qualify for a £5 discount. To encourage additional sales, the app has SMS, email, and push message services.

The shop is located on a busy road in an area which is mixed residentially and light commercial. Our client benefits from a healthy walk-in trade. Although most orders now arrive electronically, a proportion of business is booked over the telephone.

Expansion and growth opportunities

There are multiple opportunities to expand and grow the business either from its current location or a new location (next premises break clause in 2023) which are detailed in the information memorandum for this company.

Property Information

Property:

Leasehold

Lease Terms:

5 year lease signed in 2020, break clause 2023

Leasehold Rent:

£6,000 per annum

Contact IBA Corporate Ltd

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