The business can remain in its existing 1,166 square foot office through a negotiated transition period or it may be relocated as it’s on a month-to-month lease at $2,500 per month. All of the furniture, fixtures, equipment and historic goodwill associated with the kitchen supply and procurement operations will transfer in the sale. They do not carry inventory.
While competition exists, this industry incumbent boasts a blue-chip name in the hospitality industry. Their staff’s skill set and the firm’s reputation place them in a select category, granting them a unique competitive advantage that industry entrants cannot replicate and that create ‘last look’ opportunities not offered to competitors. Client’s typical 5-6 ‘refresh’ and 10–12-year remodel cycles provide a recurring revenue base (those these cycles may have a front of house focus). It is estimated that 60% of revenues are from new tenant improvements with 40% derived from remodels.
The sale comes with a solid recurring base of clients that accounted for approx. $4.7 ml in 2020 kitchen revenues, as well as an anticipated continued source of referral business coupled with a new client stream.