M&A ADVISORY

Premium Restaurant & Bar

CONFIDENTIAL INVESTMENT OPPORTUNITY

FULLY OPERATIONAL RESTAURANT & BAR

PROPRIETARY INVESTMENT MEMORANDUM | PUNE, INDIA

PRIME COMMERCIAL MALL LOCATION
₹1.20 Cr Revenue (Annual) ₹2.5 Cr Asking Price 40 Seating Capacity

Executive Summary

Investment Proposition

A fully operational, profit-making Restaurant & Bar in prime Pune location with 999-year leasehold rights, stable cash flows, and high-margin alcohol-led revenues

Annual Revenue
₹1.20 Cr
Annual Net Profit
₹24-30 L
EBITDA Margin
20-25%

Key Investment Merits

1. Proven Profitability
Stable monthly cash flows with 20-25% EBITDA margins since 2017
2. Unique Lease Structure
999-year lease at ₹1/year provides perpetual operational control
3. Alcohol-Led Revenue
50% revenue from high-margin liquor sales (60% gross margins)
4. Clean Legal Structure
No debt, no litigation, all licenses valid and transferable

Business Overview

A premier Restaurant & Bar operating since 2017 in a prime commercial mall in Pune. The business enjoys strong repeat customer patronage, stable cash flows, and high-margin alcohol-led revenues with a mature operational setup.

Core Business Specifications

Established
2017 (7+ Years)
Seating Capacity
40 Pax
Built-up Area
1,174 sq ft
Carpet Area
~800 sq ft
Customer Profile
80% Age 40+ | 20% Gen Z
Revenue Driver
Repeat Clientele & Walk-ins

Operating Hours

Weekdays (Mon-Thu)
11:30 AM – 12:00 AM
Weekends (Fri-Sun)
11:30 AM – 1:30 AM

Location & Property Details

Prime Commercial Location

City
Pune, Maharashtra
Location Type
Prime Commercial Mall
Built-up Area
1,174 sq ft
Carpet Area
~800 sq ft

Commercial Approvals & Lease Structure

999-Year Leasehold Advantage

The business operates under a unique 999-year lease agreement at ₹1 per year, effectively providing perpetual operational control with negligible lease cost. This structure eliminates rental escalation risks and provides long-term certainty.

Financial Performance

Monthly Performance (Last 12 Months Average)

Metric Amount (₹)
Monthly Revenue~10,00,000
Monthly Net Profit2,00,000 – 2,50,000
EBITDA Margin20-25%

Annualized Financial Snapshot

Annual Revenue
~₹1.20 Cr
Annual Net Profit
₹24-30 L
EBITDA
₹24-30 L

Stable Performance: Consistent monthly revenue of ~₹10 lakhs with healthy profitability demonstrates operational maturity and customer loyalty.

Revenue Mix

Category-wise Revenue Distribution

Alcohol Sales 50%
Food Sales 30%
Events & Corporate Supply 15%
Delivery / Takeaway 5%

Gross Margin Profile

Liquor Margin
~60%
Food Margin
~50%

High-Margin Business: Alcohol-led revenue mix ensures strong gross margins, with liquor contributing 50% of revenue at ~60% gross margins.

Cost Structure

Monthly Cost Breakdown (Average)

Cost Component Amount (₹)
Staff Costs1,25,000
Bar License Fees75,000
Mall Maintenance (incl. DG, water, security)~32,000
Utilities, Repairs & Miscellaneous~30,000
Total Monthly Operating Costs ~₹2.62 L

Profitability Analysis

Gross Profit Margin
~55% (Overall)
EBITDA Margin
20-25%
Net Profit Margin
20-25%

Lean Operations: Efficient cost structure with manageable fixed costs and high gross margins driving strong bottom-line performance.

Assets & Infrastructure

Complete Operational Setup

Kitchen Equipment
Fully equipped, owned (procured 2017)
Bar Setup
Complete with licensed dispensing infrastructure
Furniture & Interiors
Owned, well-maintained premium setup
POS System
Captain Pad for billing & inventory

Asset Ownership Status

Turnkey Operation: Buyer acquires a complete, ready-to-operate restaurant with all necessary equipment and systems in place.

Licenses & Compliance

Valid & Transferable Licenses

Bar License
FSSAI License
Fire Safety Certificate
Music License
Trade License
Health License

Compliance Status

Risk-Free Transition: All regulatory compliances are in order, ensuring smooth transfer of operations to new ownership.

Digital Presence & Brand Equity

Online Ratings & Reputation

Zomato Rating
4.3 ★
Swiggy Rating
4.5 ★
Google Rating
4.3 ★

Brand Equity Highlights

Proven Track Record: 7+ years of operations with consistently positive customer feedback demonstrates brand strength and operational excellence.

SWOT Analysis

STRENGTHS
  • Proven profitability with stable cash flows
  • Alcohol-led revenue mix ensures high margins
  • 999-year lease with negligible rent
  • All licenses valid and transferable
  • Strong repeat customer base
  • No debt, no litigation, clean compliance
WEAKNESSES
  • Compact seating limits peak-hour capacity
  • Dependency on bar license continuity
  • Limited delivery contribution (5% of revenue)
  • Location dependent on mall footfalls
OPPORTUNITIES
  • Increase delivery and cloud kitchen revenue
  • Premiumization of menu and bar offerings
  • Hosting private events and curated experiences
  • Cost optimization through supplier renegotiation
  • Brand expansion or franchising potential
THREATS
  • Regulatory changes in liquor policies
  • Rising competition in Pune's F&B landscape
  • Staff attrition risk (industry challenge)
  • Economic slowdown affecting discretionary spending

Valuation Justification

1. Earnings-Based Valuation

Annual Net Profit: ₹24–30 Lakhs

Asking Price: ₹2.50 Cr

Implied Multiple: ~8–10× earnings

This is reasonable for a running bar business with stable margins, zero debt, and clean compliance.

2. Replacement Cost Logic

  • Interior & fit-out: ₹80–90 Lakhs
  • Bar license acquisition: ₹40–60 Lakhs
  • Kitchen & bar equipment: ₹35–40 Lakhs
  • Time-to-stabilize losses: ₹30–40 Lakhs

Total replacement cost: ~₹1.9–2.3 Cr

3. Leasehold Advantage Premium

999-year lease at ₹1/year is economically equivalent to ownership

  • No exposure to rent escalations
  • Long-term certainty lowers business risk
  • Justifies premium vs normal leased restaurants

4. Risk-Adjusted Return

At ₹2.5 Cr investment:

  • Annual yield: ~10–12%
  • Payback period: ~8–9 years
  • Upside potential via optimization

Attractive for HNI buyers and family offices seeking stable cash flows.

Valuation Conclusion

₹2.50 Cr is justified, rational, and aligned with downside protection + upside optionality for this rare combination of profitability, lease security, and operational maturity.

Transaction Summary

Asking Price: ₹2.50 Crores

All Inclusive - Business Sale with 999-Year Leasehold Rights

Inclusions

Business Operations
Complete running business
Leasehold Rights
999-year lease (₹1/year)
All Licenses
Valid & transferable
Brand Rights
Trademark & operating rights
Furniture, Fixtures & Equipment
Complete operational setup

Exclusions

Excluded Item
Liquor Stock (to be valued separately)

Transaction Details

Payment Mode
Bank DD Preferred
Negotiability
Very Minimal (Serious Buyers Only)

THANK YOU

We appreciate your time and consideration

CONFIDENTIALITY NOTE

This document contains confidential information intended solely for qualified investors.
Not an offer for sale. For discussion with serious buyers only.

All information is subject to verification and due diligence.