julian – Global Business Brokers http://globalbizbrokers.com Fri, 16 Jun 2018 17:50:44 +0000 en-US hourly 1 https://wordpress.org/?v=4.5.9 Log Cabins & Rv Park – Waterfront – For Sale http://globalbizbrokers.com/2018/06/16/log-cabins-rv-park-waterfront-sale/ http://globalbizbrokers.com/2018/06/16/log-cabins-rv-park-waterfront-sale/#respond Fri, 16 Jun 2018 00:28:08 +0000 http://globalbizbrokers.com/?p=6409 Port Hardy, British Columbia Asking Price: $1,350,000 (CAD) Sales Revenue: Available on request Cash Flow: Available on request Location Quatse River, wildlife , estuary, ocean and close to BC Ferries. Beautiful property. Highway access1.98 Hectres RV Park & Campground on Northern Vancouver Island Highway 19. 46 Sites 30 Amp Service, city water and sewer. 12 […]

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Port Hardy, British Columbia

Asking Price:

$1,350,000 (CAD)

Sales Revenue:

Available on request

Cash Flow:

Available on request

Location Quatse River, wildlife , estuary, ocean and close to BC Ferries. Beautiful property.
Highway access1.98 Hectres RV Park & Campground on Northern Vancouver Island Highway 19.
46 Sites 30 Amp Service, city water and sewer. 12 new self contained Log Cabins. Managers home and office.
Great potential for expansion. Currently ran seasonally.
Zoned Tourist commercial C5-Allows for Hotels, Cabins and Campground.
www.porthardyrvresort.com

Property information

Real Estate:

Real Property Included

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Childrens Fashion Footwear Brand – Business For Sale http://globalbizbrokers.com/2018/06/16/childrens-fashion-footwear-brand-business-sale/ http://globalbizbrokers.com/2018/06/16/childrens-fashion-footwear-brand-business-sale/#respond Fri, 16 Jun 2018 00:26:16 +0000 http://globalbizbrokers.com/?p=6405 Toronto, Ontario Asking Price: $350,000 (CAD) Inventory / Stock included Sales Revenue: Not applicable Cash Flow: Not applicable Newly developed unique childrens footwear brand with carefully curated launch collection available for sale. The brand has been developed in coordination with the target audience (moms & kids), and is ready for launch. All social channel handles, […]

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Toronto, Ontario

Asking Price:

$350,000 (CAD) Inventory / Stock included

Sales Revenue:

Not applicable

Cash Flow:

Not applicable

Newly developed unique childrens footwear brand with carefully curated launch collection available for sale. The brand has been developed in coordination with the target audience (moms & kids), and is ready for launch. All social channel handles, web domain, name trademarks have been secured. An online Shopify store has been readied. Launch inventory of 20,000 pairs of childrens footwear size NB – 10 included in sale price.

This brand has not been introduced to market yet, all branding and marketing plans have been developed and inventory is landed and ready to sell.

Brand and marketing assets have been built by a professional marketing agency. This is a turnkey opportunity for an existing footwear business to introduce a propriety brand, or a new owner to bring the brand to market. Toys R Us has expressed interest in carrying 8 of the launch skus.

Business Operation

Expansion Potential:

Future growth plans include line extensions to childrens playroom furniture and play based costumes & accessories

Reasons for selling:

Owner health

Years established:

2017

Other Information

Inventory / Stock value:

$400,000 (CAD) – included in the asking price

Business closed / Asset sale:

Yes

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Prime Commercial Units In Surreys Busiest Plaza For Sale http://globalbizbrokers.com/2018/06/16/prime-commercial-units-surreys-busiest-plaza-sale/ http://globalbizbrokers.com/2018/06/16/prime-commercial-units-surreys-busiest-plaza-sale/#respond Fri, 16 Jun 2018 00:15:25 +0000 http://globalbizbrokers.com/?p=6403 Surrey, British Columbia Asking Price: $3,100,000 (CAD) Sales Revenue: Not applicable Cash Flow: Not applicable Approx 3178 Sq ft of retail space available in Payal Business Centre. Two units excellent visual and retail exposure. Located in the heart of the Punjabi Market. Close to Banquet halls, offices, restaurants & shops. Beautifully built inside. Do not […]

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Surrey, British Columbia

Asking Price:

$3,100,000 (CAD)

Sales Revenue:

Not applicable

Cash Flow:

Not applicable

Approx 3178 Sq ft of retail space available in Payal Business Centre. Two units excellent visual and retail exposure. Located in the heart of the Punjabi Market. Close to Banquet halls, offices, restaurants & shops. Beautifully built inside. Do not approach staff please contact LR for further details.

Property information

Real Estate:

Real Property Included

 

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Vancouver Portable Leisure Products Company http://globalbizbrokers.com/2018/06/16/vancouver-portable-leisure-products-company/ http://globalbizbrokers.com/2018/06/16/vancouver-portable-leisure-products-company/#respond Fri, 16 Jun 2018 00:01:25 +0000 http://globalbizbrokers.com/?p=6395 Vancouver, British Columbia Asking Price: $750,000 (USD) Sales Revenue: Under $500K (USD) Cash Flow: Under $250K (USD)   “Owner of Sunpax®, a portable furniture manufacturing company is looking for a buyer interested in acquiring 70% ownership of the company for $750,000 (USD). Sunpax® products are a unique line of portable leisure products including hammocks, cooler/seats, […]

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Vancouver, British Columbia

Asking Price:

$750,000 (USD)

Sales Revenue:

Under $500K (USD)

Cash Flow:

Under $250K (USD)

 

“Owner of Sunpax®, a portable furniture manufacturing company is looking for a buyer interested in acquiring 70% ownership of the company for $750,000 (USD).

Sunpax® products are a unique line of portable leisure products including hammocks, cooler/seats, lounge chairs and sand chairs.

The company is presently not in operation. The company manufactured and sold Sunpax® products to the Canada/USA premium incentive market through a network of manufacturer reps.

The current business plan is to have manufacturing facilities in Mexico producing the material. The business operations will be in Canada and the USA set up to market and distribute the SUNPAX® products in Canada, USA, Mexico, Central America and South America.

Events such as 2018 FIFA Beach Soccer World Cup- Bahamas; 2018 World Beach Games- San Diego CA; 2018 World Junior Ice Hockey Championships- USA; 2018 Winter Olympics, South Korea; 2018 World Cup – Russia; etc. will promise a lot of premium/ incentive business opportunities.

The Sunpax® brand is an excellent product line for the premium/incentive market because of the high quality, easy to imprint logo and broad consumer appeal factor.

As well, a business plan for the Sunpax® brand name and product line will be set up to focus on the “sharing” economy.

Based on business models like Uber, Airbnb, Car2Go, Mobi (bike sharing), BikeShareToronto, DogParker etc., with the use of a smartphone, a Sunpax® app and a specific major beach location, the customer will be able to rent a portable:
• lounge chair w/ umbrella
• hammock w/ umbrella
• cooler/seat w umbrella
• sand chair w/ umbrella.”

 

Business Operation

Reasons for selling:

Retirement

 

Other Information

Business closed / Asset sale:

Yes

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Addiction Treatment Centre And Property For Sale http://globalbizbrokers.com/2018/06/15/addiction-treatment-centre-property-sale/ http://globalbizbrokers.com/2018/06/15/addiction-treatment-centre-property-sale/#respond Thu, 15 Jun 2018 23:59:00 +0000 http://globalbizbrokers.com/?p=6396 Winnipeg, Manitoba Asking Price: $2,195,000 (CAD) Furniture / Fixtures and Inventory / Stock included Sales Revenue: $250K – $500K (CAD) Cash Flow: $100K – $250K (CAD)   This business operates successfully as a treatment centre, and can be expanded or evolved into other areas. Can become a retreat, nursing home, care home, healing or spa […]

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Winnipeg, Manitoba

Asking Price:

$2,195,000 (CAD) Furniture / Fixtures and Inventory / Stock included

Sales Revenue:

$250K – $500K (CAD)

Cash Flow:

$100K – $250K (CAD)

 

This business operates successfully as a treatment centre, and can be expanded or evolved into other areas.

Can become a retreat, nursing home, care home, healing or spa centre, aboriginal youth schooling centre,
Included in the price are newer modernized buildings including two housing facilities and a modern gym/fitness centre, plus a large parcel of land.

This business is located approximately 30 minutes from Winnipeg. It is profitable and has tremendous opportunity for growth. The value of the real estate alone is greater than the asking price of both the business and real estate.

Lots of possibilities for this facility. Ideally suited for a personal care home, or a combination personal care and treatment facility.

 

Property information

 

Real Estate:

Real Property Included

Size in square feet:

22000 square feet

 

Business Operation

 

Reasons for selling:

retirement

Employees: 8

Years established: 8

 

Other Information

 

Support & training:

full training and support provided

Furniture / Fixtures value:

$180,000 (CAD) – included in the asking price

Inventory / Stock value:

$20,000 (CAD) – included in the asking price

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Wedding Dress Rental Customize Business In Vancouver http://globalbizbrokers.com/2018/06/15/wedding-dress-rental-customize-business-vancouver/ http://globalbizbrokers.com/2018/06/15/wedding-dress-rental-customize-business-vancouver/#respond Thu, 15 Jun 2018 23:36:30 +0000 http://globalbizbrokers.com/?p=6388 Listing ID#CA101 – 47765 Vancouver, British Columbia Asking Price: $100K – $250K (CAD) Sales Revenue: Not applicable Cash Flow: Not applicable   Wedding Dresses shop for sale in center of Vancouver East on Kingsway. Corner unit, on busy street. Business comes with everything needed to operate including Business Professionally designed website Inventory (Wedding Dresses) 2 […]

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Listing ID#CA101 – 47765

Vancouver, British Columbia

Asking Price:

$100K – $250K (CAD)

Sales Revenue:

Not applicable

Cash Flow:

Not applicable

 

Wedding Dresses shop for sale in center of Vancouver East on Kingsway.
Corner unit, on busy street.

Business comes with everything needed to operate including
Business
Professionally designed website
Inventory (Wedding Dresses)
2 Showroom/changing
European Furniture
Newly Renovation
Knowledge, training and instruction partnering with many free lense photographers/make up artist
Indoor photo booth
Ready to go salon

Professional Website includes
Domain name
Live chat system
All Pictures
Online booking/appointment
Maps and directions page

This is an excellent opportunity to own everything you need to own a wedding dress shop.
Owner will assist with any start up training and instruction to ensure an easy takeover.
Price can be negotiated. Further information available upon request, please contact seller below for further details.

 

Property information

 

Real Estate:

Lease

Location:

Kingsway Vancouver

 

Business Operation

 

Trading hours:

11:30-6:30

Employees:

4

Years established:

2018

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Turnkey Established Hotel Restaurant And Bar Business http://globalbizbrokers.com/2018/06/15/turnkey-established-hotel-restaurant-bar-business/ http://globalbizbrokers.com/2018/06/15/turnkey-established-hotel-restaurant-bar-business/#respond Thu, 15 Jun 2018 20:32:46 +0000 http://globalbizbrokers.com/?p=6360 Listing ID# CA102 – 15443 Pontiac, Quebec Asking Price: $525,000 (CAD) Furniture / Fixtures included Sales Revenue: $750,000 (CAD) Cash Flow: Available on request   Owner retiring! This business has been a profitable running business for over 50 years. Currently has hotel rooms, two bars, restaurant and video slot machines. It is located in the […]

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Listing ID# CA102 – 15443

Pontiac, Quebec

Asking Price:

$525,000 (CAD) Furniture / Fixtures included

Sales Revenue:

$750,000 (CAD)

Cash Flow:

Available on request

 

Owner retiring! This business has been a profitable running business for over 50 years. Currently has hotel rooms, two bars, restaurant and video slot machines. It is located in the Ottawa valley in the Pontiac region only a block from the Ottawa river. There is a ferry system that runs across the Ottawa river from ontario to quebec in town. One of the bars has 3000 square feet to host events and owner has live bands on the weekends. There is also potential for 3000 sq. ft. of undeloped space for future development. Many renovations done over the years including windows, roof, heating system, kitchen equipment and hotel decor. There a 3 bedroom living quarters for the owner or manager and the latest technology for video surveillance. It is a hot spot to stop for snowmobiliers in the winter as the trail comes right to the parking lot. This business is renowned in the area and has been for many decades. It is a great opportunity to walk into.

 

Property information

 

Real Estate:

Real Property Included

Living Accommodation:

There is a 3 bedroom, 1 bathroom living quarters with a living room. The surveillance is viewed from there as well as in the office space on the main floor.

Location:

The property is located in Quyon, Quebec. It is just a short walk to the ferry service to Ontario and the Ottawa River. It is approximately 25 minutes to Ottawa and is near the Gatineau Park.The town is off highway 148 which is the only highway that runs through that area of Quebec. The drive on the highway has beautiful views of the Gatineau mountains and the Ottawa River.

Premises Details:

The building was built in 1963. It has 13,000 square feet. The land area is 132 ft X 132 ft for a total area of 17,424 square feet. It has municipal water and sewe. 5 Video Lottery Terminals, two pool tables and a covered patio area. There is a shed and workshop area as well and two garages.

Size in square feet:

9000 sq ft

 

Business Operation

 

Expansion Potential:

There is a restaurant has a smaller menu than conventional restaurants. The food is served currently from the bars. The menu could be expanded to serve breakfast etc. There is also 3000 square feet of undeveloped space on a second floor.

Competition / Market:

There is no other bar, hotel or restaurant in the area.

Reasons for selling:

Retiring.

Trading hours:

9am-11pm Monday to Thursday and Sunday (small bar)
Friday to Saturday 9am -3am (Large Bar)

Employees:

2 full-time and 6 part-time

Years established:

Current owner for 33 years

 

Other Information

 

Support & training:

The Quebec Government repairs and maintains the Video Lottery Terminals.

Financing available:

Seller willing to negotiate.

Furniture / Fixtures value:

$75,000 (CAD) – included in the asking price

Inventory / Stock value:

$25,000 (CAD)

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Want to own a coffee shop? What you need to know http://globalbizbrokers.com/2018/06/14/want-coffee-shop-need-know/ http://globalbizbrokers.com/2018/06/14/want-coffee-shop-need-know/#respond Wed, 14 Jun 2018 19:34:00 +0000 http://globalbizbrokers.com/?p=6309 Here’s everything you need to know as we take a look at the thriving independent coffee sector. With over 400 billion cups consumed per year, coffee is the world’s most sought after commodity (after crude oil). Stereotypes may suggest that Brits only drink tea from cups and saucers with their little fingers extended, however, approximately […]

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Here’s everything you need to know as we take a look at the thriving independent coffee sector.

With over 400 billion cups consumed per year, coffee is the world’s most sought after commodity (after crude oil).

Stereotypes may suggest that Brits only drink tea from cups and saucers with their little fingers extended, however, approximately 70 million cups are consumed each day in the UK.

As customer’s palates become more sophisticated, they are demanding ‘the best coffee experience … [and] coffee is fast becoming the reason why we visit certain places, something we plan our days around… the main ingredient according to The London Coffee Festival Magazine.

 

Industry insight

After 17 years of consecutive growth, the coffee shop industry remains as one of the most successful in the UK economy.

Estimated at 20,728 outlets, the coffee shop market in the UK is booming. Showing a significant sales growth of 10% and a total turnover of £7.9 billion since 2015, according to Allegra’s latest report.

There are currently three leading brands with 54% of the chain outlet share. Last year Costa Coffee held the greatest market share with 1,670 outlets, Starbucks came second with 790 followed by Café Nero with 560 shops.

The branded coffee shop segment is forecast to exceed £5.7 billion by 2020 and it is predicted that the UK coffee shop sector will exceed 30,000 outlets and produce a £15 billion turnover by 2025.

According to Allegra Strategies ‘Britain’s coffee shop sector remains one of the most successful in the UK economy’ and is set to keep expanding.

 

Café culture 

Coffee shops have become our preferred social hubs and meeting places. Where people once went to the pub to catch up, they are now turning to the more family friendly coffee shop.

And as café culture takes the UK by storm, our tea drinking nation is rapidly becoming a nation of coffee drinkers. It is now estimated that visitors drink an estimated 2.2 billion cups of coffee per year in coffee shops.

Chief executive of Whitbread (Costa) Andy Harrison hints at a recession-proof investment in The Telegraph: ‘The coffee shop market has grown at about 5pc per annum throughout the recession even in the most economically challenged parts of the UK’.

He also believes that the rise in internet shopping has greatly benefited the sector, as people no longer head to the shops for a day out; they’d rather meet up with their friends and spend a morning or afternoon in a coffee shop.

The market may be dominated by the well-known high street giants but there’s still plenty of room for independent contenders. Jeffrey Young, managing director of Allegra Strategies, claims:

‘There are still thousands and thousands of places in the UK that don’t yet have a decent coffee experience’.

Jeffrey Young, managing director of Allegra Strategies:

“The demand will continue to grow as more and more places cultivate their coffee scene – making buying a coffee shop lucrative Investment.

Independent artisan coffee is leading the way

In the same way that craft beers have become a popular trend reviving the brewing industry, artisan coffee has done the same for coffee culture. People are no longer content with a quick cup of instant coffee or a mediocre chain cappuccino.”

According to The London Coffee Festival Magazine, independent coffee is a booming industry in the UK. The publication places the capital at the top for indie coffee destinations, specifically ‘beyond zone 1’ where ‘you find yourself in the domain of the venerable neighbourhood café’.

Specialising in ‘hand crafted coffee with community spirit’, these little independent shops often have an edge on the cloned chain store.

Their success stems from a real effort to stand out from the crowd. Here’s how they do it:

 

Supporting local talent

Of course great coffee is number one on the agenda but the savvy independent coffee shop owner will source locally make cakes and provide an interesting breakfast and lunch menu (ideally made with local produce) in order to engender that all important ‘community spirit’.

It is this sense of belonging that will keep the locals coming back. Many coffee shops also opt to hang the works of local artists on the walls, provide a ‘book swap’ space and host community events.

 

Aesthetic

It works in any coffee shop owner’s favour to cater to different customer demographics. Some larger venues provide an out of office workspace, tapping into to the lifestyle of an emerging freelance workforce. Free WI-FI is a must.

Many people go to a coffee shop for a home from home experience (with undeniably better coffee) so creating a cosy atmosphere with sofas, cushions and soft lighting will draw in the crowds.

Minimalist coffee shops are also becoming a big trend. With focus on design, ultra-chic factory style interiors are becoming a popular choice – allowing people to feel part of the process behind the making of their caffeine fix.

 

Approach

Coffee shops often rely on repeat custom. People will sample a few before they choose their regular shop, so make sure yours stands out.

Small talk and service with a smile go a long way. Building up a rapport with the baristas is a perk for the customer and is certainly a way to encourage repeat custom. As an independent, you will have more time than the frenetic staff of a busy coffee chain to build up a relationship with your customers. Make the most of it.

 

Trends in the sector:

If you’re considering starting or buying a coffee shop, keeping up with the latest coffee trends is essential:

Quality roasts  

Stocking a range of roasts, from full-bodied blends, to crisp and citrusy, to sweet and mellow – allows you to cater to the customer’s differing palates and establish what’s popular.

Nowadays people care more about where their coffee comes from now than ever before. Try out sustainably sourced beans form different locations and provide information about them. You with thus create a sense of intimacy from source to mug.

 

Short and strong

Following European trends, people now want their coffee smaller and stronger, with intense roasts becoming the latest craze.

 

Cold Brew

Popular in the warmer months, this alternative to the iced coffee uses time instead of heat. The coffee is brewed over a 12-20 hour period at room temperature, then served over ice.

 

Milk substitutes

More and more coffee shops are expanding their dairy free range.  Soy is no longer the singular option; the latest milk free options include almond and coconut milk.

 

The coffee ‘movement’

Typically a nation of tea drinkers, we’re battling the stereotype – and last year Brits spent £730 million on coffee.

You could even go as far as calling it an obsession or a ‘movement’ heralded by the rapidly growing coffee culture fanatics.

The first wave of the movement was all all about consumption – based on the regular ‘grab and go’ ‘anything will do as long as it’s got caffeine in it’ mentality.

The second wave was about enjoyment – why not spend that extra 30p on adding syrup to your latte?

The third is the epitome of coffee appreciation, centred on the origins, process and methods behind what’s in the cup.

Many consumers are riding the third wave without even realising it, so when running a coffee shop it’s important to remember these three and endeavour to cater to them all.

 

The competition is warming up

Coffee shops ‘now have far more criteria driving destination choice than ever before. Branded chains are having to work hard to maintain consumer share’ according to Jeffrey Young.

With the growing consciousness of the coffee connoisseur and with artisan at the vanguard of the coffee revolution, owning a coffee shop will likely prove to be a lucrative investment.

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How to Sustain a Hotel Business http://globalbizbrokers.com/2018/06/14/sustain-hotel-business/ http://globalbizbrokers.com/2018/06/14/sustain-hotel-business/#respond Wed, 14 Jun 2018 19:32:00 +0000 http://globalbizbrokers.com/?p=6307  What are the biggest threats to the hotel industry, and how can you fight them? The hotel sector’s fortunes ebb and flow depending on several factors. Here are arguably the biggest threats to the industry and how to reduce your exposure. The hospitality industry employs more than 15 million people in the United States alone, […]

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 What are the biggest threats to the hotel industry, and how can you fight them?

The hotel sector’s fortunes ebb and flow depending on several factors. Here are arguably the biggest threats to the industry and how to reduce your exposure.

The hospitality industry employs more than 15 million people in the United States alone, so the health of the hotel sector is of huge importance for the wider economy. Even a relatively small downturn in the industry can result in thousands of lost jobs.

 

So what are the most pressing threats to the hotel sector? And what can hoteliers do to protect their investments?

 

Economic downturns

More than many industries, hospitality is greatly affected by economic downturns. This is because essentially – when you get right down to it – most paid-for accommodation is nonessential.

Vacations are a luxury spend and even in the business world, video conferencing has made face-to-face meetings less necessary.

So when the economy struggles, hotels are among the very first casualties of the ensuing belt-tightening among businesses and consumers.

This was dramatically illustrated during the recession in 2008-2010 when hotels’ average daily rate fell 18.5%, while net operating income for all hotels plummeted 37.4%. The luxury sector fared the worst, with a 23.6% fall in revenue per available room and a 37% drop in gross operating profit.

While the American economy is currently flying high, one thing the last recession – and indeed other economic fluctuations – taught us, is that no one can be sure what the future will bring economically. So the threat of an economic downturn must remain on a savvy hotelier’s radar.

 

What can hotels do to protect themselves?

Beyond maintaining a significant emergency fund of liquid capital to offset unexpected and extended losses, hoteliers can also prioritize effective marketing and resist pulling the plug on successful campaigns at the first hint of trouble.

A study published by the Cornell University School of Hotel Administration in 2015 examined the hotels that were most successful in riding out the recession and its long, slow recovery. Their conclusion?

“Winners were found to spend significantly more on marketing than losers. The relationship between marketing expenditures and performance is significantly positive, with franchise expenses and other sales expenses emerging as the most important determinants […] these results highlight the importance of personal sales efforts, including promotions, familiarization trips, trade shows, and the training of sales personnel, personal sales visits to clients, and use of outside sales representatives to help hotels thrive in a recession.

“These data lead to the conclusion that firms that ‘invest’ in marketing, especially in tough times, can achieve a payoff via various revenue drivers and will realize gains beyond just the short term.”

 

Political unrest, terror and ‘acts of God’

The tourism industry generally and hotels specifically are hugely vulnerable to events beyond their control like extreme weather events, political unrest, terror attacks and other events that deter tourists.

These negative impacts can last just days – for example violent protests in a particular city in an otherwise politically stable country like the US – or for months or years on end, with tourist sectors in Tunisia, Egypt and Turkey decimated by political unrest and terror attacks.

 

What can hotels do to protect themselves?

This is a difficult question to answer since the average hotel owner exerts no influence over political developments and the public’s reaction to unrest is highly unpredictable.

However, maintaining a reserve fund of liquid capital at least offers some insurance against adverse political conditions. In most cases, the situation is brief, localized and quickly resolved, resulting in just a few days or weeks of poor business.

Hoteliers with sufficient capital to expand could also spread their risk by diversifying across a wider geographic area. So if inclement weather dampens profits at your hotels in one state, then your properties in another state could help offset your losses.

 

Industry disruptors

With the Great Recession behind us and US hotels invariably operating in a benign political environment with usually clement weather, our third and final threat is one that strikes the most fear into the hearts of hoteliers: industry disruptors.

More specifically, we’re talking about Airbnb and its copycats.

Allowing homeowners all over the world to turn their guest bedrooms, apartments or entire homes into holiday accommodation, Airbnb has sent shockwaves around the hotel industry.

The peer-to-peer platform offers a diverse array of accommodation, often with catering facilities and a homely feel. And since these properties are not officially hotels, they’re not subject to the same hospitality taxes and legal requirements like fire safety regulations, making it difficult for hotels to compete on price.

Despite efforts by the hotel industry to level this playing field, Airbnb has only continued its explosive growth, spawning numerous copycat apps along the way. A recently published Boston University study concluded “competition from peer-to-peer platforms (like Airbnb) has several unique features that differentiate it from competition with other hotel firms.”

Among those unique features are facts that “Airbnb can scale supply in a near frictionless manner to meet demand, even on short timescales. By contrast, increasing hotel room supply involves build-out, causing significant marginal costs for the hotel chain.”

And “Airbnb offers a much wider range of products and services than hotels,” since users can rent anything from a luxury high-rise apartment in Manhattan to a houseboat on the Mississippi.

The study estimates that Airbnb’s entry into the Austin, Texas market – where Airbnb has the greatest concentration of listed properties – has put a dent in hotel revenues to the tune of 8-10% of annual revenues.

 

What can hotels do to protect themselves?

Channelled through their representative trade associations, hotels in some cities have lobbied successfully for outright bans on the services provided by Airbnb and similar platforms.

Generally speaking, however, surviving and thriving amid disruptive new technologies is all about embracing change and recognizing what it says about consumer preferences.

Airbnb is popular and it’s important to recognize why. How are these peer-to-peer platforms wooing your customers away and how can you woo them back?

  • Is it lower prices? Not always. In fact, many Airbnb rentals cost the same or more than average hotel rooms in the vicinity
  • Is it unique accommodation? Consider redecorating your hotel to a style less ordinary, more in vogue and more in tune with the tastes of your target demographic
  • Is it a headier combination of amenities and privacy? Consider adjusting procedures and training around guest interactions to offer your guests a more peaceful, private experience that feels less like staying in a hotel and more like borrowing a friend’s apartment for the night – perhaps becoming a ‘boutique hotel’ in the process

The fortunes of the hotel industry will always ebb and flow depending on these and countless other factors. But individual hotels can flourish, through good and bad times, if they keep abreast of challenges on the horizon, and are prepared to adapt their business model as required by economic conditions and the changing tastes of both tourists and business travellers.

 

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Sector Spotlight: Restaurants http://globalbizbrokers.com/2018/06/14/sector-spotlight-restaurants/ http://globalbizbrokers.com/2018/06/14/sector-spotlight-restaurants/#respond Wed, 14 Jun 2018 19:29:38 +0000 http://globalbizbrokers.com/?p=6303 Eating Out  2018 is expected to be the 6th year in a row that restaurant revenue has gone up in the United States – it’s projected to be $709.2 billion by year end. •  Half of all US adults have worked in the restaurant industry at some point in their lives. •  About 10% of […]

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Eating Out

  •  2018 is expected to be the 6th year in a row that restaurant revenue has gone up in the United States – it’s projected to be $709.2 billion by year end.
    •  Half of all US adults have worked in the restaurant industry at some point in their lives.
    •  About 10% of the US working population (about 14 million people) will work in a restaurant in 2018.
    •  47% of the money Americans spend on food goes to restaurants.
    •  The total number of restaurant locations in the US has surpassed 1 million, with 70% of them being single-unit operations as opposed to large scale franchises.

As you can tell from the stats listed above, the restaurant industry is in the midst of a long and steady upswing in the United States. And unlike some other business undertakings, experts and in-the-trenches employees agree that opening a restaurant is a realistic and achievable way to manufacture business success.

But, it’s also going to be a tremendous amount of work, and a very costly undertaking.

Can an entrepreneur succeed in the restaurant industry? Absolutely.

Is it going to be easy? Not at all.

But it’s not as hard as you think.

“90% of new restaurants fail in their first year.”

While that scary statistic makes for great eye-catching headlines, it simply isn’t true.
Instead, the facts show that failure rates when starting a restaurant hover between 50-60% in the first year, which is no riskier than starting any other small business.

Also like other business ventures, realistic and strategic planning is key to long-term success when opening a restaurant. Everything from the initial concept and name to the design of the menu and the color of your tablecloths needs to be planned out in advance if you want to avoid costly future headaches.

Coming up with the cool, unique restaurant concept is the fun part. But there are other practical issues that some restaurant owners overlook, costing themselves a lot of money and hardship.

Financing

The fact is, starting a restaurant is going to require some significant funding up front, to the tune of $200,000 to $500,000 or more. The start-up costs include:

  • The initial purchase – or, more commonly, lease – of an appropriate location
    •  Any necessary renovations or upgrades
    •  The purchase of supplies
    •  Operating expenses
    •  Food purchases
    •  Payroll
    •  And the inevitable unexpected expenses during the first several months after your grand opening.

Putting together a smart business plan ahead of time with an eye on intelligent cost savings and realistic revenue expectations can do wonders in keeping the start-up cost under control. Hiring an accountant with restaurant experience can also be a huge help.

But remember, you don’t want your restaurant to start off on the wrong foot just because you wanted to save a few dollars. Spend where you need to in order to create an appealing, welcoming, and enjoyable atmosphere with great food and service, or the whole effort will be worthless.

Marketing

The most incredibly unique concept and the highest-quality food can mean nothing at all if the marketing isn’t there to make it known. Really, it’s the dining public that you need to convince, not the critics or the investors.

Here are some questions to consider as you add marketing to your business plan:

  • What does the dining public actually want or need in the area? And what are they tired of?
    •  How are you going to differentiate yourself from all the other restaurants in the area?
    •  How are you going to entice drive-bys or pedestrians to choose your restaurant when they’re wandering around looking for someplace to go?
    •  How will you encourage first-time customers to become regular patrons?
    •  Will you have ready access to locally-produced food? (Pro chefs believe offering locally-produced meats, sea-foods, and produce will make up the single biggest trend in restaurant popularity in 2015 and 2017.)
    Workload

One of the items that nearly every successful restaurant owner has been forced to realize is that it’s not a simple 9:00-5:00 job.

Few, if any, first-time restaurant owners expected to work as long and hard as their opening months or years required. 70-100 hour weeks are very common, especially for chefs who own their own restaurants and need to wear multiple hats throughout the day. While hiring plays an important role in spreading the work around, you should expect to be working from sunup to sundown to get your restaurant off the ground at the beginning.

None of this should be seen as a reason to give up your restaurant-owning dreams. While it is a lot of work and a significant expense, it’s also an extremely popular and profitable business that tens of thousands of entrepreneurs have enjoyed over the years. With good planning and a strong work ethic, it can be a deliciously successful venture.

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