Status: Completed
Tenure: Leasehold
Leasehold Rent: £8,500 per annum
Turnover: £115,000
30 Cover Tea Room in Coastal Location30 Cover Tea Room in Coastal Location30 Cover Tea Room in Coastal Location
£75,000 + SAV

30 Cover Tea Room in Coastal Location

Completed
  • Reference: 3045-C
  • Location: North East
Hilton Smythe is delighted to welcome to the market a beautiful tea room. The business was established in the 1970's but was taken over by our client in 2012.

Our client is now looking to sell the business due to the desire to focus on other business interests. The owner runs the business as a traditional tea room selling a selection of great homemade foods this includes snacks and cakes. The business reports a healthy turnover of around £115,000 per annum with a gross profit of 65%.

The tea room currently closes at 5:30pm most days in the summer. The opening hours should be longer and the purchaser should look into opening in the evenings.

The tea room boasts a large 30 cover premise with fantastic décor. This is a dog friendly tea room, which is highly talked about on review sites such as TripAdvisor. The business has nothing but excellent reviews online.

We feel the business could benefit from a website. A website would increase the knowledge of the tea room and should even boost the amount of tourist attention. Free social media such as Facebook would also attract further custom.

The business receives great local support from other businesses in the area, this also includes the many caravan sites.

We are advised that staff run the business 75% of the time which is great for a purchaser looking for this type of business with experienced hard working staff. If the buyer was to look at running and working at the business, there would be a decrease in staff wage bills; therefore a higher gross profit figure.

Hilton Smythe highly advise early viewing to avoid missing out on this profitable coastal tea rooms.

TENURE

We are advised the business is Leasehold.
Original lease length: 10 years
Left on the lease: 7 years
Rent: £8,500 per annum

HOURS

The business is open-

Monday: 10.30-4 winter & 10.30-5.30 summer
Tuesday: 10.30-4 winter & 10.30-5.30 summer
Wednesday: 10.30-4 winter & 10.30-5.30 summer
Thursday: 10.30-4 winter & 10.30-5.30 summer
Friday: Closed winter & 10.30-5.30 summer
Saturday: 10.30-4.30 winter & 10.30-6 summer
Sunday: 10.30-4.30 winter & 10.30-6 summer

STAFF

The business is run and managed by our client with the help of three winter members of staff and 6 summer time staff.

FINANCIAL PROFILE

The business generates a turnover in the region of £115,000 per annum.
With a gross profit of around 66%
This profitable tea room is located in Northumberland.

This area receives a high amount of tourism each year, this benefits the business. The road on which the tea room is situated are few stores; there is a gift shop, delicatessen, fish and chip shop, pub, post office and a B&B.

There is on street parking in the area and pay and display carparks a short walk away.
The business boasts a beautiful property close to the coast. The property is single fronted however the entrance is to the side of the property under a sheltered walkway.

The tea room area is a fantastic size and has been decorated to a very high standard. There are approximately 30 internal covers that are spread across two rooms. Close to the front of the property is the toilet facilities.

To the rear of the property is the kitchen which is fully fitted and is a reasonable size.

Equipment includes-
Tables and chairs
Fixtures and fittings
Coffee machine
Grinder
Toastie maker
Water boiler
4 Hob oven
General equipment
Utensils
Cutlery and crockery

We are advised there are around 8 covers externally. The front of the property is well signed with a sign above the front windows.