Restaurant and Bar in Srinakarin, Bangkok for Sale
Listing No. 066-01-43-999
• Business: Cafe, Restaurant and Bar
• Location: Srinakarin, Bangkok, Thailand
• Features: Located close to the Yong Charoen Market in Srinakarin, this very large (about 200m2) ground level venue has been trading since 2012 (including during the COVID period, but admittedly, not at a profit during this period). Initially, under different ownership, it was a Coffee Shop and Book Hire, but was converted into a Café, Restaurant and Bar in early 2023 when the current owners purchased it. It has inside (air-conditioned) and outside seating for about 80 customers in all sorts of seating types – couches, easy chairs, high chairs and tables, regular tables, coffee tables, counter seating, etc and trades from 10am till midnight daily.
The kitchen was recently extended and has all of the necessary equipment to produce a wide variety of Thai and foreign foods (over 100 food menu items) – food sales currently account for about 20% of the total revenue and are increasing. Bar (alcohol) sales have risen by about 350% since Jan 23 and are still climbing – they currently account for about 50% of revenue and have the best profit margin.
The frontage of the building is wide (about 7m) and there is parking outside for motor bikes and delivery trucks. There is a large amount of passing traffic – both foot and vehicles. The café and bar service area (in the middle of the building), is well set-out with 2 coffee machines, two upright glass-front fridges, rack shelving for display of spirits and liqueurs, ice box, sink (with a separate filtered water tap), cash register and with plenty of cupboard storage. There is bar counter seating around the service area.
The transition of this business from coffee shop and book hire to café, restaurant and bar during the first half of 2023 has taken some time to kick-in, in fact it is still growing. To date and nearly every month, sales of both bar and restaurant have increased with the café figures remaining reasonably consistent (slight increase).
The current owners see room for growth by opening earlier for the breakfast trade, and are already seeing very good growth in late-night bar and food sales. The business has a ‘delivery’ account with GRAB, and makes the occasional sale, but has no interest in it because the delivery company takes 30% of the sales, meaning there is no margin in it for the business, or the business has to provide ridiculously high priced food. If a new owner wished to develop this, consistent with other delivery providers, this may produce another reasonable income stream.
Rent for the size and location of this venue is normal and, coupled with electricity (the two largest expenses) means the business only has to produce sales of about 100K per month to break even (including COGS). Ideally staffed, this figure would be about 150K a month. Currently, it is staffed by the owners on rotation and with one staff during the day and one at night. The depreciated value (real value, not purchase price or an inflated value) of the businesses fixed assets is around 200K and it is carrying 20K in goodwill on the balance sheet. There is no company offered with this sale as the owners operate it as a non-registered partnership.
The owners are offering this business for sale as they purchased it when their existing businesses had been decimated by COVID and showed no signs of recovery. Now that the economy has rebounded, they wish to free up their time to return to those ventures. This is a genuine case of ‘all of the hard work has been done…’ and the revenue figures prove this and are showing strong growth (it has not capped yet!), but the owners are just worn out and need to return to their primary roles.
Normal transition applies – social media accounts, equipment documentation, assistance with utilities transfers, menus, recipes, contacts, training as required, logos, etc. Potential buyers may request a rather comprehensive information sheet if needed, but apart from that, no other information will be released until after inspection. The business may be inspected and/or discussions with the owners may occur by booking a face-to-face appointment with Asia Business Brokers a few days in advance. Every possible record is available and will be supplied if you feel like you would like to purchase the business after you have inspected, but not before. The owners are not interested in online meetings or potential buyers who are not currently in Bangkok and are ready to purchase in all respects.
The landlord does not charge Key Money.
• Tenure: Business for Sale (Leased Premises - 3 years lease with option to extend)
• Asking Price: THB 1,500,000
• More Information: Please provide your name, phone number (with country code) and email address so we can contact you to assist
