Grocery Store In Busy University Mall For Sale

Description

Business type: grocery store

Location: York Lanes, York University campus, Toronto, Ontario

Sale structure: asset sale

Current status: established operating store

Current staffing model: student employees

Financial information

2023 sales: $552,000

2023 gross profit: $165,546

2024 sales: $417,053

2024 gross profit: $153,852

Original build-out cost in 2018: more than $500,000

Estimated current cost for a comparable build-out: approximately $675,000

Comparable equipment lead time: approximately 9 to 11 months

Historical operating context

Store opening: approximately 1 year before COVID-related campus disruption

Fiscal years completed before disruption: fewer than 2

Campus traffic recovery: gradual

Seller-stated pre-disruption break-even projection: second year

Amortization included in stated break-even projection: approximately $50,000

Management salary included in stated break-even projection: nearly $60,000

Typical time to peak sales for comparable locations: approximately 4 years

Location

Property setting: university campus mall

Campus: York University

Shopping area: York Lanes

Walk-by traffic: highest stated among the seller’s store portfolio

Comparable location information

Comparable store location: smaller university campus

Comparable store annual sales: more than $1.5 million

Transaction details

Sale basis: store equipment and improvements

Operating business goodwill: not stated as the primary valuation basis

Operations

Active owner-operator involvement: recommended by the seller

Current management opportunity: increased hands-on ownership

Buyer requirements

Food retail ownership experience: preferred

Grocery store ownership experience: may be required

Financial capacity verification: required

York University approval: required

Previous buyer approvals declined: 2

Previous approval issues: insufficient operating experience or financial capacity

Further information

Non-disclosure agreement: required for financial information from established comparable locations