Spence Bakery a Sure Thing Owners Profit $275,000 (2021)

Business Details

1988 was a year to celebrate; this was when Spence Family Bakery opened. Some 16 years later, in 2004, the current owners took ownership and ever since, it's been a proverbial goldmine in the suburbs.
Now approaching retirement, this husband-and-wife team are looking to hand over ownership to new owners.
It's been a profitable little machine and would suit a family looking for simplicity and security using a proven formula.
In setting the price of $320,000, they have essentially factored a little over one year's profit, and owners wage the business made approximately $274k for them in 2021.
There is nothing to spend on fitout or equipment, and the business consistently turnover is between $15K and $20k per week. As a bonus, the owners take about 4 weeks of every Xmas and January and shut the shop.
For those of you from outside of Canberra, we would invite you to visit our prosperous national capital. One of the things you will quickly appreciate is the unique planning laws that essentially isolate retail trade into suburban centres.
This planning regime protects retail businesses within suburban centres by limiting competition. Spence is now emerging as the premium local-shopping centre in Belconnen with a highly regarded supermarket, hairdresser, butcher and chemist.
The lease is secure for approx. ten years, and the rent is under $50,000 without the onerous demands of major shopping centres.
There is a large pool of casual staff that can run the front-end of the business. You will need to have experience in baking.
It's a 6-day week business, not opening on Sunday, and there are plenty of ways to increase profit and sales; the current owners have not needed to focus on this as they have made approximately $200k-$275k a year.
So, you will need experience in bakeries. We are reasonably confident that robust bank finance options will be on such a profitable opportunity. If you can raise 75% of the asking price, the owners will contribute 25% of the sale price to the right, experienced incoming owner.
There is a considerable list of assets offered with the business, and we have compiled a detailed business information package.
If you are interested in securing this business, please email sales@capitalcommercial.com.au with your full name, phone and interest in "Spence Family Bakery" and our team will action your enquiry.

Are you concerned about finding a pastry chef to help you run the business? Well, that’s understandable.

The current pastry chef is prepared to sign an employment agreement to stay on.  He currently works 7-3pm 5 days a week. 
Thank you and best of luck in 2022.

Financial Snapshot

Reporting Period 2021 Weekly Average 2020 Weekly Average 2019 Weekly Average
Sales $824,042.00 $15,846.96 $641,546.00$12,337.42 $554,569.00 $10,664.79
PEBITDA $274,752.00 $5,283.69 $226,122.00$4,348.50 $194,281.00 $3,736.17
Rent $40,590.00 $780.58 $41,424.00$796.62 $39,171.00 $753.29
Owners Wages 0 $0.00 $0.00$0.00 $0.00 $0.00

Business Summary

Canberra, Australian Capital Territory
The premises are subleased.
• Commencement Date: 1 January 2021
• Termination Date: 31 December 2025
• Term: 5 years
• Further Terms: First Further Term – 5 years; Second Further Term
– Not applicable
• Bank guarantee: An amount equal to three (3) months’ annual
rent plus GST, being $10,451.10 including GST as at the
Commencement Date
• Annual rent: $41,804.40 per annum inclusive of GST
• Current monthly rent: $3,483.70 inclusive of GST
• Outgoings: $56.67 per month inclusive of GST
• Public liability insurance: $20 million
• Total square meters: Approx. 77 SQM
1 Baker, 1 Pastry Chef, 1 Cleaner, 8 Shop Assistants
Monday To Friday 6:30 AM to 6:00 PM, Saturday 7:00 Am to 2:00 PM, Sunday - Closed

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Sales Summary

Sale Status : For Sale

Sale Method : Private Treaty

Investment Amount : $320,000

Stock at Value : $10,000.00

Finance Options :

Frank Walmsley

0400 446 605