Crediton is an historic market town lying 7 miles West of Exeter on the A377 trunk route between Exeter and Barnstaple and with a railway station on the popular Tarka branch line which offers easy commuting into Exeter. The town is surrounded by high quality agricultural land, has been a major farming centre for generations and has a wide catchment area, particularly to the West, North and South. A popular farmers’ market takes place every Saturday and the area is renowned for its local cheeses, home grown beef and organic vegetables. In recent years a major Tesco supermarket has been built on the Eastern side of the town, further emphasizing the local maxim that you can buy everything you need in Crediton.
The premises occupy an excellent trading position in the heart of the busiest part of the town centre which is concentrated around the junction of High Street and Market Street.
This attractively presented and well equipped, unlicensed, lock up sandwich bar and café with 24 internal and 2 external covers as presently arranged, occupies an excellent trading location in the busiest part of the town enjoying a strong footfall throughout the day.
Turnover is derived from a combination of the takeaway and eat-in trade in broadly equal amounts and is boosted by lunch buffet trade for some corporate/business clients.
All food is made fresh to order on the premises based upon a fast service with a quick turnover of tables for those choosing to eat in. The menu is simple but appetizing including breakfasts, sandwiches and hot or cold baguettes with an attractive range of fillings, jacket potatoes, salads, home-made specials, together with a selection of home-made cakes as well as hot and cold beverages.
Opening hours were cut back in 2014/15 and then again in 2016/17 and the business currently trades only Monday to Friday from 8.30am to 3.00pm to suit the needs of the owner and an obvious opportunity exists to increase turnover and profitability by opening on Saturdays and later in the afternoon.
Rent and running costs are low by comparison with many other such businesses with no business rates payable in 2018/19 and the business would appear ideal for a committed couple or as a first venture.
A refrigerated van with internal racking fitted and MOT is available for purchase if required in connection with the delivery trade.
An early inspection is strongly recommended to avoid disappointment.
The business was founded by the current owner in 1998 in premises that were formerly a butcher’s shop. She traded successfully for 7 years and then sold the business in 2005 to concentrate upon corporate catering for a while before re-purchasing the business in 2011.
Historic accounts show peak turnover at c £95,000 in the past, when the business was Vat registered, but the vendor chose to reduce her working hours for personal reasons and closed on Saturdays in 2014/15 and more recently has been closing at 3pm rather than 4pm during the week. There is therefore plenty of scope to increase turnover by extending opening hours again.
Accounts for the year ended 31 May 2017 show sales of £68,421 together with a very healthy gross profit margin of 67.8%. We understand that the vendor deregistered for VAT in February 2017, i.e. 9 months into the financial year 2016/17 which with prices maintained should see profits increase.
Rent is low and no business rates have been payable since 1/4/2017.
More detailed trading information will be made available upon completion of a form of confidentiality agreement and following a conversation with Adams & Co regarding financial position and ability to proceed.
Please note that if a business is VAT registered, all figures exclude VAT.
REASON FOR SALE:
The vendor has connections in the Weston-super-Mare area and wishes to acquire a seasonal business there to allow time for extended overseas travel.
The business is operated with the full-time (5 days) involvement of the vendor supported by two experienced members of staff who work 24 hours and 20 hours per week respectively.
Monday to Friday: 8.30am to 3.00pm
Saturday and Sunday: Closed
The town is invariably very busy throughout the normal working day and particularly so on Saturdays and a considerable uplift in sales seems likely from the extension of the currently modest opening hours and based upon the historic trading information available.
(all sizes are approximate & should be considered 'nominal'.)
The premises occupy the ground floor and basement storage area of a period terraced property arranged over 5 levels under a pitched and tiled roof. Above the lock up shop there are three floors of residential accommodation divided into flats which are accessed from the rear and which are under separate ownership/let separately and do not form part of the business being offered for sale.
The premises overlook the High Street and benefit from a loading bay/short term parking immediately outside. The pavement is quite wide here with space to locate two external covers in comfort for use by smokers.
The shop front is almost fully glazed in a metal frame with a retractable sun canopy and prominent signage over and has only recently been refurbished. There is a large plate glass window with a fully glazed entrance door to the right hand side which opens into:
Main Servery and Seating Area (4.1m x 9.5m max):
Suspended ceiling of varying heights. Attractive drop lighting with further directional spotlighting. Attractive wood panel effect flooring. Half height wooden wall panelling, painted above. Wall mounted electric fan heater and separate portable heater. Combination of rectangular and square wooden tables with chairs, benches and fitted wooden seating arranged to offer 18 covers in the main part.
Towards the rear on the right hand side a wooden gallery rail with single step up partially encloses a further seating area with 2 tables accommodating 6 covers.
Large, serve over, chilled display and refrigeration unit (this is in very good order being no more than 6 years old and is owned by the landlord). L-shaped wooden unit to one side and further wooden unit to the other side with space to accommodate a Sharp electric till. 2 x large wall mounted menu blackboards. Non slip floor surface behind chiller unit. Further L-shaped work surface with open storage space below accommodating Instanta Supreme water boiler and filter coffee machine (on free loan from coffee supplier).
Painted wooden chest of drawers used for storage. Child’s booster seat.
Beyond the seating area three steps rise to an outer lobby from which a wooden door with further step up represents an emergency exit to the passageway to the side elevation. An open doorway gives access to an inner lobby with twin wooden louvre doors concealing a small storage space with high level obscure glazed window to the side elevation. A further wooden door and step up gives access to:
Staff and Customer WC (1.8m x 1.6m approx.):
High level obscure glazed wooden window to side elevation. Vinyl floorcovering. Partially tiled walls. Wall mounted ceramic wash basin with Triton electric water heater over. Low flush WC. A locked wooden door formerly offered access to a wooden staircase leading to the basement storage space – this has been blocked on this side to offer increased space in the commercial kitchen – see below.
Returning to the outer lobby, twin wooden louvre swing doors open into:
Commercial Kitchen (5.0m x 2.7m approx.):
A spacious commercial kitchen facility with a view from one end over the main café area. Wipe clean ceiling. Vinyl floorcovering. Part tiled walls. Large stainless steel double sink unit with twin drainers, Redring electric water heater over and open storage under. Stainless steel dishwasher. Stainless steel upright refrigerator. Large chest freezer. To the café end a full width roll edged work surface with open storage under accommodates 3 x Kenwood microwave ovens. To one side there is an Indesit electric cooker with double oven and 4 x halogen hobs. A further L-shaped roll edged work surface accommodates a George Foreman grill, Dualit commercial toaster, an inset ceramic hand wash basin with Dimplex electric water heater over, a food mixer and a Speedwrap 300 cellophane wrapper. Under the work surface is a further refrigerator and additional open storage space. Wall mounted insect killer. Wooden wall shelving, an arched wall recess with fitted shelving and a further alcove with storage shelving.
A removable floor panel in the rear corner allows access to the staircase descending to the basement storage space. This is not used by the current owner but is understood to offer c 47.7sq metres of dry storage space and some potential for alternative use if desired.
Where items of equipment and appliances are mentioned, no warranty is given or implied as to their operational condition.
(all sizes are approximate & should be considered 'nominal'.)
Short term parking is available immediately outside the premises and the town centre is well served by public car parking facilities. The vendor has access to a private parking space nearby which may be available to the new owner.
ENERGY PERFORMANCE CERTIFICATE:
Energy Performance Certificate Number: 0289-3042-0134-0790-1401
Energy Performance Asset Rating: 88 Category D
Vendors and Buyers each to meet their own legal costs, but if a lease is to be assigned from the vendor to the buyer they will also be expected to share the landlord’s legal costs on a 50/50 basis. If a buyer wishes to negotiate a ‘new’ lease, they will be responsible for all the landlord’s legal costs.
The premises have a current rateable value of £10,000. As such, under the new business rates regime introduced from 1/4/17 no business rates will be payable for the foreseeable future.
This information has been obtained either from the current rate demand for the property, or by telephone from the local authority. The amount payable is the standard rate for the Rateable Value shown. In some circumstances this may vary, and therefore it is recommended that. potential buyers make their own enquiries through the local authority to check whether the rateable value remains correct and whether the rates payable will be the figure quoted above.
We understand that mains electricity, water and sewerage services are connected. Mains gas is not currently connected but we are advised that it is available if required.
The vendor is asking £27,000 for the leasehold interest, business goodwill, equipment, fixtures and fittings, subject to inventory, with stock to be paid for separately at valuation.
A Renault Kangoo (X reg) refrigerated van with fitted internal racking and MOT is available for purchase separately against a guide price of c £1,000.
The vendor advises that stock generally has a value in the region of £800