Established and Profitable Ice Cream Shop for sale in Malaga City €175,000

This very successful, easy to run and profitable business is for sale at asking 175K in a great area filled with upper-middle class residents, gross sales of +/- 210K with +/- 85K cash flow.

The sale will include all equipment (100K) and inventory (15K) as well as transitional training and support.

Widely recognized as among the top Ice Cream shops in Malaga, it is not uncommon to see a line forming up in this great business even when the staff has a good thru-put system to take orders and get customers moving down the line.

Located in the intersection of 3 of Malaga’s biggest residential neighborhoods the business caters to about 80K clients within walking distance, it also benefits from a nearby Mall, Supermarket and football stadium as well as heavy car traffic exposure.  The premises are 90m2 inside and has use of the outdoor terrace with 10 tables.

Rent is low at just 1500/month renewable every 5 years and profitability is very high, the owner is scaling back his workload and thus has priced very reasonably at an ROI of just over 2.0 without increasing the workload, this is excluding owner salaries so true return on investment.

The shop opens from 13:00 to 24:00 for 10 ½ months a year.

Fair market value of the equipment currently in store is estimated at 100K  and consistently carries around 15K in inventory at any given moment (included in the asking) with sales over 210K and cash flow of 85K.

We would recommend any prospective buyer considering this option to have a working knowledge of Spanish as the majority of clients are of Spanish nationality so a certain interaction with clients is expected, however the current owner leaves around 18:00 since he produces the ice cream and employees can handle the bulk of serving work.

This business can also be purchased without the production equipment at 99K with a production/supply agreement with the seller for 5 years at the market rate which would reduce the net profit to +/- 30% of gross sales, the advantage being besides the obvious lesser capital requirements the reduced work hours (no production) and salary expenses.

The owner got into the business without any prior knowledge of restaurants or ice cream making and has since become in a recognized ice cream maker, he will offer the new buyer a prolonged and continued transitional period to ensure the continued success of the business so no prior experience needed.

M2 : 90
Category: Bar