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Casual Italian Family Restaurant

An Italian family restaurant in Mobile that more than doubled revenue last year, running at 28% EBITDA margins with dine-in, takeout and catering.

Business Highlights

  • Revenue more than doubled year over year
  • 28% EBITDA margin, well above typical restaurant margins
  • Catering and private events alongside dine-in and takeout
  • Leased premises, so no real estate is needed to buy in

Considerations / Questions to Ask

  • The business is young and the growth is recent. There is little history to show how it holds.
  • The chef-owner is the draw. What happens to the food and the regulars after a short transition?
  • What are the lease terms and the remaining length?
  • The seller's revenue projection for next year is a forecast. Ask what it assumes.
  • How much of revenue is catering, and is any of it recurring?

Opportunities

  • A 28% margin gives room to hire a manager and still clear a real income
  • Catering scales without adding dining room seats
  • Growth this fast suggests unmet local demand for the concept
  • A clean exit means the seller is not asking for a complicated structure