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Businesses For Sale > Business For Sale in Ada, Idaho (ID)
Northwest-based Branded Pizzeria with High Growth Potential
Ada, Idaho (ID)
| Asking Price: |
Gross: |
Cash Flow: |
| Undisclosed |
Undisclosed |
$265,597 |
Furniture and Fixtures Value:
$400,000 (included in the asking price)
Inventory Value:
$20,000 (included in the asking price)
Business Summary:
This privately held pizza chain has consistently expanded its business through two locations and an active website in its metro market, relying on simple yet effective grass roots marketing campaigns. More than 1,200 past employee alumni consider themselves brand ambassadors who are ready to support the brand’s expansion beyond its local market. The restaurant’s unique positioning is reflected in its commitment to ensuring consistency in the guest experience at each of its restaurants, through comprehensive training and employee development, and store surveys that ask guests to sketch their experience as a face on a round pizza. This pizzeria has been innovative in every dimension of the business. Improvements have been documented and standardized, from the 100 dough recipe improvements to the Playbook of individual team training tips or accounts of employee innovations captured as acknowledgements in their paycheck enclosures. The Brand recognition and loyalty by customers who prefer the consistent quality of extremely high quality pizzas, calzones, specialty beers and unique experiences coupled with the personal, friendly attention received at their local neighborhood eatery all combine to differentiate this pizzeria from national chains or independents in the market area. The local chain has been recognized with many awards over the years and consistently is selected as “Best Pizza” by reader surveys in several local market’s newspapers. This competitive advantage is reflected in its average store sales of $1,028,129, which is 2 times the average for the top 25 pizza chains and 3 times the average for independents. The owner has been actively directing the business over the past two decades, injecting his personal philosophy and commitment to developing the brand and the customer experience, “Play can be serious business and if you invite the customer into the show, they will keep coming back to see whether you can repeat the performance.” With about 65 employees throughout its operations, including 18 full-time staff, this organization excels at continuous improvement.
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| Year
Business was Established: 1978 |
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| Number of Employees:
18FT/47PT |
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| Facilities / Terms of Lease:
Currently has stores in two locations in its area of impact in Boise, Idaho, with one store of 5,000 square feet including its commissary and offices; the second store is 2,250 square feet. Both facilities are equipped with similar equipment and furnishings. It completes a monthly maintenance program on all appropriate equipment, including thorough cleaning, calibrating and inspection. In addition, all critical machines receive an annual maintenance program that is specifically designed to proactively replace all significant components that experience significant wear and factory recommendations have flagged as important. All water for food processing, drink mixing, and ice machines is filtered.Optimum store size is 2,500 square feet, with 3,000 square feet for a regional commissary to support expansion into each new market. |
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| Potential
Growth/Expansion:
This restaurant’s success is supported by the continued growth in sales at each location, with revenues up nearly 50% since 2002 in its two existing locations. This pizzeria is uniquely positioned to capitalize on the growth in the metro market's population by opening additional locations in neighborhoods that are underserved by independent pizza restaurants and replicating its customer satisfaction oriented experience. Unlike customers of other pizza concepts, these customers have been conditioned to expect something more than pizza from their favorite pizzeria. They frequent the stores again and again for great pizza and beer but also to find out, “What will happen next?” |
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| Competition:
The Quick Service restaurant (QSR) and Casual Dining (CD) segments are poised for continued growth in large part due to supporting demographic trends. Baby boomers, currently in their early 40s to early 60s, are “in their peak earning years…a restaurant-savvy slice of the population” according to the Restaurant Industry Operations Report 2006/2007 published by the National Restaurant Association. The same report asserts that “Across all age groups, diners’ appetites are growing for more options, increasingly sophisticated taste and flavor sensations.” The Pizza Market segments on national chains and independents, and is highly developed in major metro markets across the country. Sales saw one of the most significant rises in several years, up 3% in sales in both the QSR and CD segments, to $32 billion which represents about 6% of total eating place restaurant sales in the US. Yet the total unit count for pizza restaurants rose by 7% so that pizza now represents 8% of all restaurants in the U.S. Independents own 67% of pizzerias and control 50% of sales with average dollar sales of $327 thousand in 2006. The top 25 chains average higher dollar sales at $644 thousand and include notable brands such as Pizza Hut (10%), Domino’s (7%), Papa John’s (4%), Little Caesar’s (3%). This pizzeria has built a strong local market presence within its geographic region as a leading brand, which provides a strong foundation for continued expansion through opening of new stores, leveraging both the centralized commissary and targeted marketing efforts. Continued growth of the business will focus on taking this company, which is fully prepared with systems and people in place, to the next level and expanding regionally or nationally within an established network or as a new entrant. Just expanding locally by adding one store each year in the greater metro area has the potential to yield $7 million in sales and nearly $1 million in EBITDA by 2012. |
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| Owner
willing to finance:
The majority owner is not interested in seller financing. |
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| Owner
willing to train:
Yes |
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| Reason for selling:
The majority owner is interested in seeing the pizza chain expand. |
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Seller Reference Number: 50100
BusinessMart.com Listing Number: 34622 |
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To request more information
on this business
please fill out the form shown right 
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For
more info contact:
Meg Carlson
The C&H Group
208-853-0991
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