Yummy Pizza for sale.

[jonwilly]

On Friday I was informed that Yummy Pizza, one of my favorite places to dine was up for sale.

http://www.chiangmaiestateagents.com/property/business-for-sale/mueang-city/yummy-pizza-restaurant-for-sale-in-chiang-mai-341.html

I informed a friend who visited yesterday Saturday and Yummy was closed for maintenance.

I will visit today as it is due to be open, to check out just what the muck is going on.

John

[robertthai197]

Tony has worked hard to build his restaurant and maybe its time to relax some place nice and possibly retire from the food business.best of luck to tony and his family.

[Rungthip]

that's a shame!

[YoungBrit]

Would be a shame, always enjoyed Yummy Pizza and Tony has always been very hospitable. I wish him all the best.

[FiftyTwo]

Don't worry, he'll probably open a new place, close by, a few months later.

Just like the last time.

Great idea though, why sell food, when you can make more selling restaurants.

Good God! 5M key money, that can't be right!

Edited September 15, 2013 by FiftyTwo

[Loaded]

How long has the place been open?

[ARISTIDE]

I didn't know that, if that's the case then good luck for him

Don't worry, he'll probably open a new place, close by, a few months later.
Just like the last time.

Great idea though, why sell food, when you can make more selling restaurants.

Good God! 5M key money, that can't be right!

[BB1955]

Too bad I did enjoy dropping in from time to time foods good .

[dru2]

It's open today and excellent as usual - I just had lunch there.

[circusman]

People don't usually sell profitable businesses. Just saying.

[AngelsLariat]

People don't usually sell profitable businesses. Just saying.

Or is it that they don't usually sell them cheaply? He is asking 5.3M Baht for the place; if he can't document that he's turning a profit that asking price would seem more than a bit silly.

[Dante99]

People don't usually sell profitable businesses. Just saying.

absurd

[ARISTIDE]

I thoutht Mike Burger was sold when it was very profitable (also Miguel's ?) sold by the same guy? Just my speculation

People don't usually sell profitable businesses. Just saying.

[dudu]

People don't usually sell profitable businesses. Just saying.

Maybe they are very very tired!

[Sticky Rice Balls]

Thats the way the meatball crumbles....pass the peas please........

[Ulysses G.]

I thoutht Mike Burger was sold when it was very profitable (also Miguel's ?) sold by the same guy? Just my speculation

People don't usually sell profitable businesses. Just saying.

You are right about both, but starting new restaurant businesses and selling them was Mike's MO.

[pilm]

5.3m key money.

Should just have made it 5,555,555

[junglechef]

It's a challenge to build a restaurants business and goodwill and then cash out, take a break and start a new project with a new set of challenges. I bought, built and sold my first restaurant by 24 yrs old and continued for many years while doing other projects in between aswell. Keeps the cash flowing and life interesting.

[Greenside]

Don't worry, he'll probably open a new place, close by, a few months later.

Just like the last time.

Great idea though, why sell food, when you can make more selling restaurants.

Good God! 5M key money, that can't be right!

Correct me if I'm wrong but wasn't his last business was off the Hang Dong road where the Dog & Bone is now? If that's the case, it's a bit of a stretch to claim that it's close by given Yummy Pizza's location on Canal Road. The old place was tiny, had almost no parking and about a dozen covers - I only went once but it seems clear to me that the current business is the kind of logical step up I'd expect if you can see both the potential and the limitations of a first attempt rather than the hallmark of a serial restaurant entrepreneur.

As for your thoughts on the valuation of the business, the price is meaningless without understanding what's included and if there is a good regular customer base that doesn't rely on tourists then presumably the figures will speak for themselves. Just ask around how much it costs to equip a restaurant and establish a loyal customer base - the number of (good) places that open and fold are a testament to how people underestimate what a slog it can be.

I'm not connected in any way (other than as an occasional satisfied customer) but wish him the best of luck in whatever he chooses to do next. I'll miss the lasagne and the pizza.

[pilm]

the price is meaningless without understanding what's included and if there is a good regular customer base that doesn't rely on tourists then presumably the figures will speak for themselves. Just ask around how much it costs to equip a restaurant and establish a loyal customer base - the number of (good) places that open and fold are a testament to how people underestimate what a slog it can be.

Just looking at the key money, over a ten year ownership that would equate to 44k p/m before rent, power, staff, products etc. etc.

Let's hope that customer base stays loyal. Never mind all numbers of possible political, social (and even natural) turmoil that is quite probable within that timeframe.

If 5.3m isn't pocket change I would recommend something a bit more stable.

Edited September 15, 2013 by pilm

[dudu]

the price is meaningless without understanding what's included and if there is a good regular customer base that doesn't rely on tourists then presumably the figures will speak for themselves. Just ask around how much it costs to equip a restaurant and establish a loyal customer base - the number of (good) places that open and fold are a testament to how people underestimate what a slog it can be.

Just looking at the key money, over a ten year ownership that would equate to 44k p/m before rent, power, staff, products etc. etc.

Let's hope that customer base stays loyal. Never mind all numbers of possible political, social (and even natural) turmoil that is quite probable within that timeframe.

If 5.3m isn't pocket change I would recommend something a bit more stable.

if you were to invest 5.3 on some thing that returns you well over 20percent per anum,while you are also working to increase that percentage, your initial investment of 5.3, will be more like 12+ in years to come, of course it all depends on improving your figures, restaurants are not everybody's cup of tea,they are dam_n hard work, so many factors involved, in the end,its bums on seats and net profits that do the talking, only based on that, can you determine key money.

Edited September 15, 2013 by dudu

[pilm]

if you were to invest 5.3 on some thing that returns you well over 20percent per anum,

Per annum.

You know the actual real figures of the business or are pulling figures out of thin, smokey for 3 months of the year, air?

your initial investment of 5.3, will be more like 12+ in years to come

If you're talking about 'years to come' in Thailand with some sort of certainty, I cannot believe you've been here long at all.

In which case a purchase like this might well be right up your alley, or soi, so to speak.

[dudu]

if you were to invest 5.3 on some thing that returns you well over 20percent per anum,

Per annum.

You know the actual real figures of the business or are pulling figures out of thin, smokey for 3 months of the year, air?

your initial investment of 5.3, will be more like 12+ in years to come

If you're talking about 'years to come' in Thailand with some sort of certainty, I cannot believe you've been here long at all.

In which case a purchase like this might well be right up your alley, or soi, so to speak.

Hmmm,far as i know,people still eat when its smoky and Thailand was here in turmoil years ago and it will be in turmoil in years to come, but people still eat and survive,but i could be wrong.

[junglechef]

In The USA one years gross sales is an equation that is often used to calculate a selling price not including licsenese and of course real estate if applicable. Profits are determined by many factors such as food costs that without care can result in a losing proposition.

[dudu]

In The USA one years gross sales is an equation that is often used to calculate a selling price not including licsenese and of course real estate if applicable. Profits are determined by many factors such as food costs that without care can result in a losing proposition.

Agree many factors, in Australia, net profit is the bottom line and what sells your business..

[pilm]

if you were to invest 5.3 on some thing that returns you well over 20percent per anum,

Per annum.

You know the actual real figures of the business or are pulling figures out of thin, smokey for 3 months of the year, air?

your initial investment of 5.3, will be more like 12+ in years to come

If you're talking about 'years to come' in Thailand with some sort of certainty, I cannot believe you've been here long at all.

In which case a purchase like this might well be right up your alley, or soi, so to speak.

Hmmm,far as i know,people still eat when its smoky and Thailand was here in turmoil years ago and it will be in turmoil in years to come, but people still eat and survive,but i could be wrong.

It can be hard to educate a fool. Especially a fool in Thailand with money to invest.

Good luck with it.

[jonwilly]

Had lunch and spoke to Tony yesterday Sunday.

Tony strangely is expanding his business and has just refurbished his kitchen.

The land and building immediately across the soi is now under his control and he has plans for it's use.

From what I can gather, a Partner, prepared to split the time used running the restaurant would be more welcome then an outright sale, of the 7 days a week diner.

His Cod and chips where excellent, top notch, best in town.

john

[FiftyTwo]

the price is meaningless without understanding what's included and if there is a good regular customer base that doesn't rely on tourists then presumably the figures will speak for themselves. Just ask around how much it costs to equip a restaurant and establish a loyal customer base - the number of (good) places that open and fold are a testament to how people underestimate what a slog it can be.

Just looking at the key money, over a ten year ownership that would equate to 44k p/m before rent, power, staff, products etc. etc.

Let's hope that customer base stays loyal. Never mind all numbers of possible political, social (and even natural) turmoil that is quite probable within that timeframe.

If 5.3m isn't pocket change I would recommend something a bit more stable.

When he sold Happy Pizza, the customer base stayed loyal, and moved to his new place Yummy Pizza.

In the end the new owner of Happy Pizza walked away losing 100% of the key money.

The new owner wasn't very happy that he bought a business with no customers.

[eyecatcher]

People don't usually sell profitable businesses.  Just saying.

absurd

Exactly...the best way to make a good return and have punters fighting to but it..is to sell when its on its uppers, Not when your having to try convince punters its doing well.

A monthly profit though doesn't mean you are living it up by any means...but a great bonus for any new investor as a start.

Selling now,at the start of the season, must be a canny decision,

Good luck

Sent via tin can and string after pigeon shot

[Dellboy218]

the price is meaningless without understanding what's included and if there is a good regular customer base that doesn't rely on tourists then presumably the figures will speak for themselves. Just ask around how much it costs to equip a restaurant and establish a loyal customer base - the number of (good) places that open and fold are a testament to how people underestimate what a slog it can be.

Just looking at the key money, over a ten year ownership that would equate to 44k p/m before rent, power, staff, products etc. etc.

Let's hope that customer base stays loyal. Never mind all numbers of possible political, social (and even natural) turmoil that is quite probable within that timeframe.

If 5.3m isn't pocket change I would recommend something a bit more stable.

When he sold Happy Pizza, the customer base stayed loyal, and moved to his new place Yummy Pizza.

In the end the new owner of Happy Pizza walked away losing 100% of the key money.

The new owner wasn't very happy that he bought a business with no customers.

That might have had something to do with the person that took it over. Leaving your young children to play with TV remotes next to a bar is not the best way to keep customers. It lost him this one anyway.