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1 BUSINESS PROFILE
2 Table of Contents EXECUTIVE SUMMARY 3 BUSINESS PROFILE 4 LOCATION 5 PRODUCT OVERVIEW 6 OPERATIONS 7 STAFF 8 EQUIPMENT LIST 9 OPPORTUNITIES 10 FINANCIAL SUMMARY 11 FINANCIAL INFORMATION - ADD BACKS 12 BUSINESS IMAGES WHERE TO FROM HERE 18 COMPETITON INSTRUCTIONS APPENDENCIES REFER TO ATTACHED - PROFIT & LOSS STATEMENT 2016& LIQUOR LICENSE - LESSOR STATEMENT - NSW LOTTERY PERMIT - LEASE DISCLOSURE STATEMENT p.2
3 EXECUTIVE SUMMARY Business Name & Trading As: Date Business Commenced: Address: Current Licences and Permits Website Facebook Instagram Ave Weekly Turnover: Annual rent: Lease Options Available: Staff: Das Hund Haus April 2014 Shop 6 / 54 Beaumont Street, Hamilton NSW 2303 Liquor Licence LIQO dashundhaus.com.au $11,000 $77,438 (ex GST) 31 months from 31 st Aug x Owner, 1x Manager + 3 Casuals p.3
4 LOCATION Hamilton is only 4km from the Newcastle Central Business District. Newcastle metropolitan area is the second most populated area in the Australian state of New South Wales. Newcastle, Australia s seventh largest city, is only 160kms north of Sydney. It is located in the heart of the Hunter Region and bordered by a stunning coastline with beautiful beaches. The business is located in a high traffic, high exposure shopping strip position that offers easy accessible parking for customers. The shopping strip itself has a mix of hospitality businesses that serve the surrounding residential community. The business is well serviced by public transport with the station only 250 metres away and several bus routes passing the business on the way to the train station. There is also an industrial area located in close proximity and the pedestrian centre for a large chunk of the city of Newcastle s population. p.5
5 PRODUCT OVERVIEW The business offers a range of well priced drinks and hearty German meals that are easy to prepare and execute. All products are prepared fresh daily. The main sellers for the business are Pork Knuckle, Schnitzels and Litres of German Biers. SHARE PLATES Big Bad Wolf $90 A share plate for 2, featuring our signature pork knuckle, pork belly and a selection of sausages served with sauerkraut, mash, bread, mustard and pork jus. On Heat $75 A share plate for 2, featuring our signature pork knuckle, haus prepared chicken schnitzels and a selection of sausages served with sauerkraut, mash, mustard and pork jus. MAINS Pork Knuckle $38 Our signature pork knuckle served on a bed of mash with jus Pork Belly $32 A slab of crackled pork belly, with mash potato and jus Wurst Plate $25 Selections of sausages, mustard, bread, sauerkraut and gherkin Salt and Pepper squid $23 Squid with cucumber salad Bier Battered Barramundi 21 Bier battered salt water barramundi and pommes frites with mayonnaise. BURGERS Knuckle Sandwich $19 Pulled pork knuckle, Bavarian mayonnaise and sauerkraut. Chicken and Cheese $17 Chicken schnitzel with cheese and Bavarian mayonnaise. Pork Belly Roll $18 Crackled pork belly, aioli, cheese and bbq sauce SIDES $8 -$10 Berliner Curry Wurst Garlic Pretzels Roasted Pumpkin Pommes Frites Roasted Carrots Mash Bread Basket Chips & Gravy BIER LIST $8 -$20 7 Keg Taps & 1 Cider Fully imported Lowenbrau, Hofbrau, Franziskaner, Paulaner amongst others on tap. With changes seasonally when the opportunity arrives to tap fresh kegs. Hand Crumbed Chicken Schnitzel $17 With chips and gravy. Mulled wine poached pear and walnut salad $15 With mixed leaf and fig reduction glaze p.6
6 OPERATIONS Refer to the attached list. Hours of Operation The Business mainly provides a lunch & dinner service, operating between the hours of 3.30pm to late Tuesdays to Thursday, with the exception of Friday and Saturday staying open till midnight. The winner of this business is free to change operational hours and open earlier. DAYS OPERATIONAL HOURS Monday Closed Tuesday 3.30pm - Late Wednesday 3.30pm - Late Thursday 3.30pm - Late Friday 12.00pm - Midnight Saturday 12.00pm - Midnight Sunday 12.00pm - Late p.7
7 STAFF Currently the business is operated by the owner and 1 manager full time and 3 casuals paid weekly who are responsible for taking orders, food preparation and customer service. Owner/Operator Manager FOH 3 x Casual Staff enjoy working in a conflict free workplace and value the positive team focused environment. The casual staff are keen to remain in the business and work with the new owners. p.8
8 EQUIPMENT LIST Front Of House, Back Of House & Fixtures Hardwood 8 seater outdoor tables and benches Roller Door Mazzer coffee grinder Outdoor Television and Housing. 3 door under bench drinks fridge POS System - Senpos, 2 printers (Kitchen & Bar) 1 x barcode reader Beer System and font, cup plinks and spare cup plinks Range hood Waldorf single pan 3 basket single pan gas deep fryer Combi Rational 10 tray self cooking electric oven Benchtop induction hotplate 2 Bay Electric Bain Marie Microwave Stainless benches Stainless under bench fridge Stainless tall fridge Chest Freezer Upright freezer Dishwasher Crockery and Cutlery Kitchen Utensils (Pots, Pans, Trays etc) Glassware Fitout Symphony Orchestra Amplifier Light fittings And all other necessary tools of trade p.9
9 OPPORTUNITIES The owner has done an excellent job tapping into the local market offering a unique menu & beverage range which is easily executed and straight forward to run. The hard work has been done and now this business is ready for a fresh operator to increase the potential and to hone in on tighter marketing initiatives and activities to the community. There are areas that can be improved that can deliver an immediate impact, these are; Extend Trading Hours Breakfast and earlier week trading would see an immediate revenue lift. Diversifying The Menu There is room to expand the menu with additional German favourites and contemporary cuisine. The venue has a large functional kitchen that is mostly underutilised with the current minimal menu. Functions The business generates a large number of enquiries for functions and it is an area that hasn t really been pushed. There is obviously great interest from the market and proper managing would see a dramatic increase in revenue. Area Focus The business is a true all-rounder offering a variety of services to patrons. However, the owners have not dedicated the resources to truly develop any particular area. That is to say there is the potential to develop each of the areas quite substantially. Catering Options Tap into lucrative catering options for private & corporate functions. The venue has a large kitchen that can handle lucrative external catering options and opportunities. Update Website The current website would benefit to include additional images of the food offerings. The website does have detailed function enquiry form, but would benefit with a detailed Functions Package information kit outlining exactly what can be ordered and what occasions can be catered to. Take Away Menu & Activity Increasing the businesses presence on online ordering websites and services such Menulog, Eatnow & Uber Eats. To date with minimal activity the business presently sells $200 - $300 in weekly sales which can be considerably improved with a proper online takeaway menu and focused activity. 0 p.10
10 FINANCIAL SUMMARY The business sales has been performing solidly as indicated by the below chart. Financial Performance $700, $600, $500, $400, $300, $200, $100, $ st, 2nd & 3rd Qtr 2017 Revenue $597, $507, Gross Profit $234, $254, Operating Profit $156, $151, Revenue Gross Profit Operating Profit Das Hund Haus has all the staff and operational system in place and can be operated profitably hands on or at arm s length under management. The annual Sales, Cost of Goods and Net Return to the owner have remained consistent for 2016 & shows a healthy annualised net return to the owner (after addbacks and before tax) of $151,682 on Year to Date sales of $507,439. A reduction in Cost of Goods and Wages on 2016 saw increased Gross Profit of $254,774 after 29% COGS and 20% wages deducted. The improved 2017 profitability is directly due to improved costs of goods management and the owner taking an active hand on role in the business, in turn reducing casual labour costs has been Annualised and is not yet finalised shows a full year net return to the owner (after addbacks and before tax) of $156,639 on sales of $597,657. Gross Profit was $230,016 after 32% COGS and 28% wages deducted. The higher costs attributed to owner running business at arm s length employing a full time manager to oversee the daily operations. 1 p.11
11 FINANCIAL INFORMATION ~ ADD BACKS Add backs can be defined as expenses paid by the business that add value to the personal well being of the owner or are one off and/or extraordinary expenses that are unlikely to reoccur. Add-backs can be items such as depreciation, finance costs and interest, the owner or managers salary and superannuation, motor vehicle for personal use, bookkeeping fees, one off legal costs, and personal insurances amongst others. Accountants will generally advise their business owner clients of the best way to legally minimize their tax obligations. As a result, many small businesses in Australia will produce accountant prepared statements with a minimal net profit, and often a net loss for taxation purposes. It is important to note that this does not necessarily reflect the actual cash results a business may produce, as this is often higher. Addback items allows a prospective purchaser, their advisors, and financiers the opportunity to evaluate the actual maintainable earnings available to the owner of the business before personal and extra ordinary expenses are deducted 2 p.12
12 BUSINESS IMAGES 3 p.13
13 BUSINESS IMAGES 4 p.14
14 BUSINESS IMAGES 5 p.15
15 BUSINESS IMAGES 6 p.16
16 BUSINESS IMAGES 7 p.17
17 Profit and Loss Das Hund Haus Hamilton For the year ended 30 June 2017 Account 2017* 2016 Trading Income Sales 507, , Total Trading Income 507, , Cost of Sales COGS 147, , Wages and Salaries 105, , Total Cost of Sales 252, , Gross Profit 254, , Other Income Government Grants 2, Total Other Income 2, Operating Expenses Advertising 10, , Consulting & Accounting 4, , Entertainment 2, , Enviroking , Equipment Rental 22, , Initial Hygiene Insurance 6, , Kitchen Supplies 2, , Light, Power, Heating 11, , Printing & Stationery Rent 77, , Repairs and Maintenance 1, , Security 1, , Superannuation 9, , Telephone & Internet 1, , Training & Professional Development 1, , Waste Removal 1, , Total Operating Expenses 155, , Net Profit 101, , Addbacks: Manager Salaries 70, , Manager Superannuation 6, , Total Addbacks 76, , Less: Owners Compensation (Not taken)^ 26, Net Profit 151, , *2017 has been Annualised and is not yet finalised. ^Owner, James Sneddon began working back in the business full time in January 2017.
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