Outstanding café + bakery + full service restaurant + real estate

MARCH 17, 2025

It has been a great 30(+) year run for this very successful West Michigan landmark café, bakery and full service restaurant. This active, local jewel of a business combines all three profit centers under one roof in a delightful, classic 3,600 square foot brick building (included in the listing price). The real estate also has adjacent parking.

The minority owner (who works full-time in the business) is planning to relocate out of state after selling the business and real estate and giving the new owner-operator ample no-charge transition training. The majority owner already lives out-of-state and cannot relocate to take over management of the business. Their problems could be your exciting business opportunity.

Here’s what is for sale and the details of what the sellers are prepared to offer a solid candidate:

• The establishment has annual revenues year after year approaching $2.0 million while operating without ever having a liquor license.

• SDE (the historical cash flow available to pay the new owner-operator and service debt) has averaged $270,000 over each of the past four years.

• The books are squeaky clean, and there are no unsupportable addbacks on the SDE compilation.

• 2024 tax returns have already been filed and included in the valuation.

• The sellers own the real estate which is valued at $350,000 and is included in the listing price.

• Two key managers with a combined 20 years of on the job experience are in place and expected to stay with the business for the new owner(s) post-closing.

• The businesses employs 12 full-time and 24 part-time, non-union, well-paid, and dedicated employees.

• The business includes a full contingent of fixed assets to prepare the wide range of specialty coffees and baked goods, and of course the business includes a full commercial kitchen. Additionally the business has long standing and meaningful relationships with food suppliers and local vendors.

• The enterprise value is priced at $744,000 reflecting a favorable 2.75x multiple of SDE.

• The all-in price (including inventory, all fixed assets, enterprise value, and real estate) is $1.1 million.

• A typical purchase would include 10% ($110,000) buyer cash; $165,000 seller note with a 6.0% interest rate and a ten (10) year amortization; and a SBA bank loan of $827,000 with normal SBA terms.

• After making the combined annual principal + interest payments for the seller note and SBA bank term loan, post debt service annual free cash flow for a buyer has averaged an eye-popping $176,000 over the past four years.

To learn more about this extraordinary business opportunity, please contact Mike Greengard anytime: (mgreengard@praxisbusinessbrokers.com) or 616-450-0707.

Asking: $1,100,000
Cash flow: $270,000
Gross: $2,000,000
Reference ID MG31725
Location(s): West Michigan
Categories: Restaurants, Small Biz, Bakeries

Contact information

Michael Greengard
mgreengard@praxisbusinessbrokers.com
616-450-0707