Nacho's Mexican Grille

Nacho's Mexican Grille Business for Sale

Background Information

This business has been in existence since June of 2006. It operates as a Subchapter "S" Corporation known as Nacho's Mexican Grille, Inc. The real estate, a free standing building with a residential apartment above the restaurant, is owned by the owners of the business, separate from the business being offered for sale. Upon the transfer of the business, the three bedroom apartment will be available for rent should a new owner be interested. The restaurant is housed in a 1000 square foot space, complete with dining room, service counter and food preparation area, restrooms, and kitchen. There is also outside deck seating available in season.

Nacho's Mexican Grille is a popular Mexican themed restaurant located in the heart of the White Mountains National Forest, on the world famous Kancamagus Scenic Highway. The restaurant sits directly across from the entrance to Loon's new South Mountain addition. Frequented by loyal locals and visitors alike, Nacho'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 2007 as compared to 2006, although a very snowy winter has started off 2008 with visitor numbers to the Lincoln-Woodstock area ahead of the last couple of years. Inclement weather in 2007 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. Although there are legitimate concerns about how the price of gas will affect the number of visitors to the area in 2008, the belief is that day trippers will still be visiting the White Mountains because of the close proximity to their homes, the majority of which are within 180-200 miles of Lincoln-Woodstock. The strong amount of day trippers will hopefully keep most restaurants busier than their lodging counterparts who will be dealing with shortened lengths of stay and discounted rates.

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

Nacho's Mexican Grille is located in a stand alone building with plenty of parking on Route 112, the Kancamagus Highway, in Lincoln, New Hampshire. The restaurant is just 1-1/2 miles from Loon Mountain's main entrance, the most popular ski resort in New Hampshire. It is directly across the street from the entrance to Loon's newly expanded South Mountain. 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.

Lincoln's Main Street includes myriad lodging establishments, service businesses, restaurants, shops, entertainment facilities, natural attractions, and walking trails…much to do within easy walking distance to everywhere.

Physical Condition

The restaurant is housed in a newly renovated and well maintained building, complete with dining rooms, service area, open kitchen and food preparation area, restrooms, and summer deck seating. All furniture, fixtures, and equipment are in good to excellent shape and, in most cases, only two years old. The public areas of the restaurant are clean, well maintained, comfortable, and appealing to customers.

Reason for Selling & Other Facts

The owner created the restaurant to make it appealing to a buyer. He purchased and renovated an existing home in need of repair, and created a popular restaurant which he has now brought to a point where it is all ready to go for a new owner. He is looking to relocate back to Massachusetts.

The current owner is willing to train for two weeks immediately prior to the transfer of the business, at no charge.

Inventory of Furniture, Fixtures & Equipment

  • Four Burner Gas Range
  • Stock Pot Burner
  • Double Fryolator
  • Grill Top With Oven
  • 3 Well Steam Table
  • 30" Salad Table
  • 24" Cheese Melter
  • Ansel System With Hood
  • Under Counter Refrigerator
  • 50 Lb. Ice Maker
  • Nacho Chip Warmer
  • 2 30" Reach-In Refrigerators
  • Residential Refrigerator
  • Residential Freezer
  • 80" Three Bay Sink
  • Prep Sink
  • 5 Prep Tables
  • Reach-In Freezer
  • Hand Wash Sink
  • Operating Equipment
  • 10 Dining Tables
  • 36 Dining Chairs
  • 4 Exterior Dining Tables
  • 12 Exterior Dining Chairs

The approximate total fair market value of the Furniture, Fixtures and Equipment is $29,550.

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 $1,500. 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.

Not Included in the Sale

  • Cash on hand
  • Business bank accounts
  • Accounts Receivable
  • Accounts Payable
  • Outstanding loans
  • Any other security deposits and prepaid expenses

Hours of Operation/Employees

The restaurant is open with seasonal hours, as follows:

  • Summer, June 15-September 15, 7 days per week, 11:30am to 9:00pm
  • Fall Foliage, September 15-October 15, Thursday through Monday, 11:30am to 9:00pm
  • Winter, January through March, Thursday through Monday, 11:30am to 9:00pm
  • Open 7 days a week for Christmas and February vacations
  • Off Season, open Friday-Sunday, 11:30am through 9:00pm

Size of Facility

The restaurant is 1000 square feet and seats 40 inside and 29 outside in the Summer. There is parking on property for up to 20 cars.

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.

2006-2007 Profit and Loss Statements

Available upon completing a Confidentiality Agreement.

Ways to Improve the Business

Current sellers have considered expanding the restaurant upstairs in place of the apartment and creating a lounge and waiting area. Also, increased hours during slower seasons may cater to a more consistent local clientele.

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: $1,500
Furniture, Fixtures and Equipment: $29,550
Real Estate: $0
TOTAL RLP: $149,900

*Available upon completing a Confidentiality Agreement.

Ownership Transfer Specifications

The current owners are asking $149,900 total for the business. They are willing to provide terms to a qualified buyer.

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