Restaurants / Deli Restaurant
This is an outstanding deli with a great location and consistent 4 to 5-star reviews across popular social media platforms. This deli has been in a busy, active, well-maintained shopping center for the last 14 years. There is a wide variety of shopping, dining and leisure activities in this complex. The deli is a 100’ from a major theater entrance, about 50’ from a Starbucks location and around the corner from a sports complex. Hence, this center has a very high occupancy rate over the last ten years. The rent is under $5000 per month. The deli has 30 seats inside and five covered patio tables outside. They have a beer and wine license. The present owner has owned the business for three years using the same menus including an extensive catering menu. The catering has not been properly utilized because the owner had no prior food experience and is not sales oriented.
For 2016 food costs were 53.6% of the $172,514 revenue and in 2017 food costs were 44.1% of the $169,209 revenue. Importantly the industry average for food costs are closer to 30% and the owner believes his COGS should be more like 32%. This change would positively impact owner benefits.
Of interest, the prior owner had revenues of $387,521, $335,385 and $271,734 and with food cost of 39.7% and 36.7% and 38.9% respectively and the owner benefits were about $63,073, $41,722 and $44,368 with no adjustments of the Cost of Goods Sold.
There is substantial room for growth by utilizing an advertising and marketing campaign, expanding the catering business and optimizing food costs.