King's Corner Café
Background Information
This business has been in existence since 1992, and was purchased by the current owners in 2004. It operates as a Limited Liability Corporation known as King's Corner Café, LLC. The real estate, a commercial condominium, is owned by the company, and included in the listing price. The restaurant is housed in a 1343 square foot space, complete with dining room, service counter and food preparation area, restrooms, and kitchen.
King's Corner Cafe is a popular breakfast and lunch restaurant located in the heart of the White Mountains National Forest, on the world famous Kancamagus Scenic Highway. Frequented by loyal locals and visitors alike, King's Corner Café's focus is on providing a quality product, personally prepared, and at a reasonable price.
The Industry
The restaurant industry in the Lincoln-Woodstock area is seasonal, as it sits in the heart of New Hampshire's White Mountain region, a popular tourist destination. When the tourists are here (June through October and December through March, roughly), the restaurant is very busy weekends and school vacation periods. During the off season and winter midweek periods, the restaurant has to appeal to its local clientele.
Generally speaking, tourism destinations all over the country did find numbers down in 2006 as compared to 2005, and 2007 has been inconsistent. Inclement weather did bolster attendance in some restaurants as guests finding themselves in the area during rainy times or extremely cold periods had nothing to do but eat and drink if it was too cold to ski or too wet to enjoy the outdoors. King's Corner Café has seen revenues remain consistent in 2005 and 2006 with a 15% increase forecasted for 2007 based on year-to-date numbers.
Although the trend is for shorter length of stays in this and other tourism areas across the country, the Lincoln-Woodstock area is ideally located for an abundance of day trippers so the restaurant industry in the area has not really suffered because of this trend. With the majority of the area's visitors coming from within a 200 mile radius and the greatest concentration coming from the Boston and southern New Hampshire markets, the area's restaurants will continue to benefit from the sheer volume of visitors, regardless of their length of stay.
For further information on the state of the restaurant industry in Lincoln-Woodstock and New Hampshire, contact the following entities:
Lincoln-Woodstock Chamber of Commerce
P.O. Box 358
Kancamagus Highway
Lincoln, NH 03251
603-745-6621
www.lincolnwoodstock.com
New Hampshire Lodging and Restaurant Association
P.O. Box 1175
14 Dixon Avenue, Suite 208
Concord, NH 03302
603-228-9585
www.nhlra.com
Location
King's Corner Café is located in a popular strip mall called the Depot Plaza, located directly off of Route 112, the Kancamagus Highway, in Lincoln, New Hampshire. The restaurant is just 1 mile from Loon Mountain, the most popular ski resort in New Hampshire. The area is also a popular destination year round for its hiking, biking, swimming, winter activities, foliage, and other attractions, both man-made and natural, that the White Mountain National Forest has to offer.
The Depot Plaza is a vibrant area including other businesses such as a deli, thrift store, hair salon, convenience store, pottery shop, vacation reservation service, offices, and there is also a full service restaurant adjacent to the plaza.
Physical Condition
The restaurant is housed in a well maintained commercial condominium building, complete with dining room, service counter and food preparation area, restrooms, and kitchen. All furniture, fixtures, and equipment are in good to excellent shape. The public areas of the restaurant are clean, well maintained, comfortable, and appealing to customers.
Reason for Selling & Other Facts
The owners are looking to semi-retire as health issues have hastened their desire to begin to slow their lives down a bit.
The current owners are willing to stay on and train for two weeks after the transfer of the business at no charge.
Inventory of Furniture, Fixtures & Equipment
Available upon request. The approximate total fair market value of the Furniture, Fixtures and Equipment is $52,940.
Inventory
The approximate total fair market value of the dry goods and fresh and frozen consumables to be left at the time of sale is $2,000. An inventory of all the items should be taken at the time of closing and the value adjusted (up or down) depending upon its results.
Hours of Operation/Employees
The restaurant is open from 7:00am to 2:00pm, daily. There are currently 7 employees, 1 full-time and 6 part-time. All employees are paid hourly, the one full-time employee earns approximately $30,000 per year and the part-time employees' compensation varies by season, responsibilities, and experience.
Size of Facility
The entire condo unit is plus or minus 1343 square feet, all on one level. Condo fees are $366 per month. The seating capacity of the restaurant is 50 per town permit, but the owners have found that 38 is a more functional capacity. There is parking in the plaza for up to 60 cars which accommodates the needs of all tenants.
Annual Sales Volume
Available upon completing a Confidentiality Agreement.
Gross Profit Margin
Available upon completing a Confidentiality Agreement.
Expenses
Available upon completing a Confidentiality Agreement.
2005-2007 Profit and Loss Statements
Available upon completing a Confidentiality Agreement.
Ways to Improve the Business
The current owners have thought about a few changes to directly increase revenues including the addition of a liquor license, add dinner on Fridays and Saturdays, and add an evening coffee and dessert bar. Also, they have relied heavily on word of mouth marketing which has been successful for them, but also feel that increased print advertising and promotional marketing will only help.
Recommended Listing Price (RLP)
The RLP justification for this business is as follows:
| The business has gross revenues of: | * |
| The business has a cost of goods sold of: | * |
| The business has a gross profit of: | * |
| The business has Sellers Discretionary Earnings of: | * |
| Salable Inventory at Cost: | $2,000 |
| Furniture, Fixtures and Equipment: | $52,940 |
| Real Estate: | $100,000 |
| TOTAL RLP: $259,900 |
*Available upon completing a Confidentiality Agreement.
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