This Californian Specialty Coffee Roaster and Retailer is a California S Corporation and was started 14 years ago and has been under current ownership since inception. They produce award winning coffees (they have won several awards) and can be purchased in their retail cafes, online, and grocery stores. With multiple revenue streams and outlets for distribution, this coffee roaster has been growing and expanding over the past several years. They have 3 retail Coffeehouses and 5 other licensed shops where coffee can be purchased. They also offer a wholesale side of the business selling coffee to Restaurants, Coffee bars, grocery, and office coffee. Additionally, they have online web sales as well as equipment sales. The Education portion is a big part of the foundation of this coffee roaster, and they offer a range of classes from home to professional. With a selection of Barista classes, Latte art, coffee tasting and coffee brewing they cover the needs of coffee lovers and provide a hands-on experience for customers to find the best brewing method for them, and professional baristas to understand the complexity of creating that perfect cup.
They have developed direct relationships with passionate farmers over the years that allows them access to the pick of the crop, micolots and the best tasting coffees. They care as much about their farmers as they do about the quality of the coffee in each cup served. By committing to purchasing annually it provides sustainability to their producers and for the coffee roaster. Local fundraisers have helped with social projects at schools in Guatemala. They choose producers who look to improve their environment, working in countries such as Guatemala, Honduras, Costa Rica, Colombia, and Brazil. Their coffee professionals are highly trained, and their baristas have competed locally, regionally, and nationally in competitions. They roast every coffee to bring out amazing flavors inherent in the coffee bean and have made it easy for customers to find the coffee they will like. They are always part of community events and a leader in making coffee approachable to all. They have been a member and participant in the Specialty Coffee Association (SCA) since 2007.
Financial Information
$2,190,000
Asking Price
$500,000
Cash Flow
$2,500,000
Gross Revenue
$2,190,000
Down Payment
Business Location
City:
California
State:California
Reason for Sale
Sellers are selling to pursue other interests.
Detailed information
Year Established:2008
Home Based:No
Franchise:No
Relocatable:No
Lender Prequalified:Yes
SBA Prequalified:Yes
Full-Time Employees: 5
Part-Time Employees:25
Contractors:N/A
Owner Worked Hours/w:35
Adjusted EBITDA:
$350,000
Inventory Included: Yes
Inventory Value:
$100,000
Real Estate Available: No
Real Estate Included: No
Real Estate Value:
N/A
Building Size: 5830
FF&E Included?: Yes
FF&E Value: $400,000
Training/Support
The Seller is willing to provide training at 30 hours per week for 4 weeks for the new Owner. Additional training may be provided at agreed upon price and terms between the new Buyer and Seller.
Facilities
They currently operate out of 3 retail locations in California, with one of them having their roasting facility as well. One location that has the roasting facility is approximately 2,850 square feet with a monthly rent of $4,100 and a lease that expires on August 31, 2042, with an option for another 10 years. The second location is approximately 1,480 square feet with a monthly rent of $3,881 also with a 10-year lease that expires in June 2028. The third location is approximately 1,500 square feet and is a newer retail location starting in August 2020 with a minimum monthly rent of $2,250 + NNN at $1.17 per square foot, or 9.5% of gross revenue, whichever is greater. The lease term is 5 years and 2 months.
Market Outlook/Competition
The global coffee roaster market was valued at USD 1.22 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.3% from 2022 to 2030. The rising demand and inclination of consumers towards the consumption of coffee across the globe is a primary factor driving the growth.
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