Lottery Caf w/ Liquor License

This is an excellent Lotto Caf opportunity with healthy profits and serious growth potential. This is a simple operation with limited staffing requirements and challenges that come with similar opportunities with the same cash flow. This business enjoys very strong returns and is price appropriately. The caf offers great food, full liquor available and lottery including 6 video lottery machines, video Keno and traditional lottery ticket sales. They have a strong local clientele with consistent activity on the video lottery machines. The Asst. Manager has been with the business 2 years and acts as manager. She is paid $9 an hour. This person has potential to be promoted to manager and operate the business for an absentee owner. There are 3 Part-time Employees all are paid $8.25 an hour and handle all daily operational efforts. All can cook, run register, clean, wash dishes, etc. Acquisition costs for equipment was $50,000. All operational equipment will transfer with the sale. Annual Sales: Caf annual sales 2006 $157,878 Lottery earnings 2006 $146,275 Gross Revenue 2006 $304,153 Caf annual sales 2007 (Projected)$170,000 Lottery earnings 2007 (Projected) $170,000 Gross Revenue 2007 (Projected) $340,000 Seller s Discretionary Earnings (Profit): $136,023 for 2006 $168,000 Projected for 2007 The following are a few of the identified growth factors that may have the potential to improve revenues and earnings. Facility Expansion: Currently there is an empty space available next door to this business. It would be possible to expand the business into the neighboring facility to improve dining revenues and promote the alcohol sales. Increase Hours: This business could benefit from opening earlier for the breakfast crowd and evening drinking crowd. Televisions: Adding televisions would keep those waiting for a video machine from leaving while waiting for a lotto machine. ATM Machine: At the moment, the ATM machine is owned by anothe

Facilities: Facility is 1,200 square feet and is on a lease that runs through May 31, 2009 with 2 five year extensions. Rent is currently $1,167 base rent plus $357CAM fees. Rent increases 3% per year. There are 30 seats at dining tables and 6 seats at the video lottery machines. There is a security system in place with 4 cameras, additional cameras can be added. Lottery sales include 6 video lottery machines, 4 Keno monitors and traditional lottery. The Caf is located in a high volume shopping mall which provides plenty of parking and several anchor tenants.

Competition: This business caters to a local and loyal crowd. Demographic includes most locals 18 yrs old or above. There are no other lotto cafes in town but there are approximately 12 other restaurant and bar establishments that offer lotto. Seller states that at the end of 2006 they were number 2 revenue producer in the area. Products include traditional breakfast and lunch menu, beer, wine, hard alcohol and Oregon Lottery traditional lottery, video Keno and 6 video lottery machines. Licenses include Full On-Premises liquor Sales & Oregon Lottery license.

Growth/Expansion: The income projections are conservative. There is a requirement for the non-lotto sales need to be equal or greater than 50% of the overall income of the business. The current increase in lotto income is out pacing the increase in non-lotto income. A new owner can add items like cigarettes to dramatically increase non-lotto sales. The $168,000 in profits estimated for 2007 are conservative and could easily be in the $185,00 range with the addition of items like cigarettes.

Financing: Tbd

Support/Training: Seller works approximately 40 hours a week as the General Manager handling daily operations, hiring/firing, training, bookkeeping, and vendor relations. Seller is willing to stay on and train a new owner, introduce vendors and commit to a non-compete agreement. All vendors are in place.

Reason Selling: The Seller is planning on retiring to spend time with her husband traveling.