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European and International style restaurant and delicatessen shop, fully equipped with Kitchen, display chillers, chiller, AC, furniture, cooking equipment, etc. etc. The entire operation is for sale. Seating for 30 people plus 2 outside veranda tables. Located in the middle of commercial area in Korea Town. Good revenue of 300-500k/month possible. Extremely low rental of 10K/month. . Pay for the rights, interior and equipment plus lease contract takeover. Contact 0915 3565790 Erich. Or Paul at +63 9195780687

Price 850000 Peso

Location: 295 Friendship Highway (middle of the central area)

Take over immediately

If it's profitable, then why is the owner selling it or renting it out?

Any pics? I thought foreigners weren't allowed to buy property there?

Winston wrote:If it's profitable, then why is the owner selling it or renting it out?

Any pics? I thought foreigners weren't allowed to buy property there?

Its not a property sale. You are just buying the equipment and movables plus whatever franchise he (the tenant) has built-up and taking over the lease.

I suspect he thought it would be reasonably profitable but came up against a bunch of (insurmountable) obstacles and now wants out. Sounds like the revenue figures he quoted are ones he believed might have been possible but for various reasons, he has never been able to achieve them himself.

Sounds a nice little business for an expat who wants to live in the Phillies.

Maybe I'd buy it and turn it into a lb cafe, with cute lb waitresses lol.

Rock wrote:

Winston wrote:If it's profitable, then why is the owner selling it or renting it out?

Any pics? I thought foreigners weren't allowed to buy property there?

Its not a property sale. You are just buying the equipment and movables plus whatever franchise he (the tenant) has built-up and taking over the lease.

I suspect he thought it would be reasonably profitable but came up against a bunch of (insurmountable) obstacles and now wants out. Sounds like the revenue figures he quoted are ones he believed might have been possible but for various reasons, he has never been able to achieve them himself.

Would you ever consider a deal like that?

Ladislav, what about you?

I think his estimate of it being able to make 300,000 - 500,000 pesos a month from that business is a bit overly optimistic though.

What do you think some of those obstacles might be?

You should ask Sean what his obstacles were when he ran that tea shop in Angeles City. Apparently, they were so bad that he didn't even want to tell me. lol

I don't want to do any on-land business in the Philippines. Too risky. I only want to work online while there.

I lost half my online income in October. Now that's risky!

I think running a bar would be a lot of fun, although you're unlikely to get rich.

One of my Chinese ex's talked of opening a restaurant, I don't know if she ever did.

xiongmao wrote:I lost half my online income in October. Now that's risky!

.

Teaching English, editing and translating online will provide a steady income for decades.

I'm not worried about my own income - knowing C# and SQL will keep me in work for years - people just don't want to do this stuff. It's hard as well - I flunked the oDesk ASP.NET test yet I've been doing it for 10 years. Oh well, I don't know a single unemployed geek.

Rock wrote:

Winston wrote:If it's profitable, then why is the owner selling it or renting it out?

Any pics? I thought foreigners weren't allowed to buy property there?

Its not a property sale. You are just buying the equipment and movables plus whatever franchise he (the tenant) has built-up and taking over the lease.

I suspect he thought it would be reasonably profitable but came up against a bunch of (insurmountable) obstacles and now wants out. Sounds like the revenue figures he quoted are ones he believed might have been possible but for various reasons, he has never been able to achieve them himself.

The restaurant and deli was up and running for over a year. In its good time the turn over was 300K or better. The last few months the owners wife became very ill and did not pay much attention to the business and averaged was still around 100 to 150K .
The owner opened another larger restaurant near fields ave, and is finding it hard to juggle both with his wife being ill. Hence the sale.
Yes it is a lease deal with all the equipment to start right away. and for the area the rent is really low

The name of the business is "Cafe Deutschland".It has been open for over a year and has been a quite a pleasant little business to run. It has an excellent reputation and a large following of repeat customers who praise the quality of our food, products and excellent service.
It Is approximately 60 sq m with a outdoor veranda area. It has a very low rent and low overheads. It is in an excellent location right in the middle of one of the busiest areas of town. So it has fantastic potential.
If you have any further questions please don't hesitate to contact me on this email address bluelake1964@yahoo.com

Winston wrote:

Rock wrote:

Winston wrote:If it's profitable, then why is the owner selling it or renting it out?

Any pics? I thought foreigners weren't allowed to buy property there?

Its not a property sale. You are just buying the equipment and movables plus whatever franchise he (the tenant) has built-up and taking over the lease.

I suspect he thought it would be reasonably profitable but came up against a bunch of (insurmountable) obstacles and now wants out. Sounds like the revenue figures he quoted are ones he believed might have been possible but for various reasons, he has never been able to achieve them himself.

Would you ever consider a deal like that?

Ladislav, what about you?

I think his estimate of it being able to make 300,000 - 500,000 pesos a month from that business is a bit overly optimistic though.

What do you think some of those obstacles might be?

You should ask Sean what his obstacles were when he ran that tea shop in Angeles City. Apparently, they were so bad that he didn't even want to tell me. lol

1. Of course not, given my suspicions as per above.

2. That's just a revenue estimate, not profit (top line vs. bottom line). Even if someone achieved that level of turnover, he might still loose money (negative net margins) or break even (zero net margins). In that sort of business, overheads are probably quite low. So gross margins are going to be key.

For example:

Monthly Sales: 300,000
Cost of goods sold: 250,000
=> Gross Profit: 50,000

Overhead (rent, salaries, and other expenses): 30,000

=> Monthly Pretax Profit: 20,000

The above scenario would not be too exciting if owner had to work there full-time hours to manage the place. Essentially, he would be getting paid (20,000 less taxes) for his time and would have to factor in your cost of capital (opportunity cost of money he put in and could not invest elsewhere for a return) to boot.

Opportunity cost of capital calculation: 850,000 Pesos invested in Condo with net rental yield of 6% (easily achievable in Metro Manila) => 4,250 Pesos a month which needs to be deducted from the 20,000 Pesos pretax profit. That gets you down to 15,750 per month. And don't forget taxes. If the numbers look anything like that, there's not a lot to get excited about.

3. I don't know a damn thing about that industry or all the potential pitfalls of doing business in a place like Angeles. But I do know foreign buyers of businesses there get scammed on a regular basis. The only way to be sure is the hard way - buy the business and see what happens, lol.

bigdog22 wrote: The restaurant and deli was up and running for over a year. In its good time the turn over was 300K or better. The last few months the owners wife became very ill and did not pay much attention to the business and averaged was still around 100 to 150K .
The owner opened another larger restaurant near fields ave, and is finding it hard to juggle both with his wife being ill. Hence the sale.
Yes it is a lease deal with all the equipment to start right away. and for the area the rent is really low.

The name of the business is "Cafe Deutschland".It has been open for over a year and has been a quite a pleasant little business to run. It has an excellent reputation and a large following of repeat customers who praise the quality of our food, products and excellent service.
It Is approximately 60 sq m with a outdoor veranda area. It has a very low rent and low overheads. It is in an excellent location right in the middle of one of the busiest areas of town. So it has fantastic potential.
If you have any further questions please don't hesitate to contact me on this email address bluelake1964@yahoo.com

Are you the owner of a friend of his? I've been through Friendship many times but I don't remember seeing a "Cafe Deutschland".

When it was making 300k a month, what was the operating cost, overhead, product cost, and how much in bribes did the owner have to pay per month?

How did you find this site? Not many expats in Angeles know about it.

Winston wrote:

bigdog22 wrote: The restaurant and deli was up and running for over a year. In its good time the turn over was 300K or better. The last few months the owners wife became very ill and did not pay much attention to the business and averaged was still around 100 to 150K .
The owner opened another larger restaurant near fields ave, and is finding it hard to juggle both with his wife being ill. Hence the sale.
Yes it is a lease deal with all the equipment to start right away. and for the area the rent is really low.

The name of the business is "Cafe Deutschland".It has been open for over a year and has been a quite a pleasant little business to run. It has an excellent reputation and a large following of repeat customers who praise the quality of our food, products and excellent service.
It Is approximately 60 sq m with a outdoor veranda area. It has a very low rent and low overheads. It is in an excellent location right in the middle of one of the busiest areas of town. So it has fantastic potential.
If you have any further questions please don't hesitate to contact me on this email address bluelake1964@yahoo.com

Are you the owner of a friend of his? I've been through Friendship many times but I don't remember seeing a "Cafe Deutschland".

When it was making 300k a month, what was the operating cost, overhead, product cost, and how much in bribes did the owner have to pay per month?

How did you find this site? Not many expats in Angeles know about it.

Ha! you guys make me laugh. I am a friend of the owner. he needs some help this is real . look up restaurant reviews ,
for someone that wants the ability to live in pi with a perpetual income and not whore or drink himself to death this is for you .
There is no bribes its a restaurant ( Its not in fields ave) from jan to may was the good months then the wife got sick . so yes you have to watch and keep on top of your staff. they are the ones here that make or break a business. ask anyone that has owned a business here : )

bigdog22 wrote:

Winston wrote:

bigdog22 wrote: The restaurant and deli was up and running for over a year. In its good time the turn over was 300K or better. The last few months the owners wife became very ill and did not pay much attention to the business and averaged was still around 100 to 150K .
The owner opened another larger restaurant near fields ave, and is finding it hard to juggle both with his wife being ill. Hence the sale.
Yes it is a lease deal with all the equipment to start right away. and for the area the rent is really low.

The name of the business is "Cafe Deutschland".It has been open for over a year and has been a quite a pleasant little business to run. It has an excellent reputation and a large following of repeat customers who praise the quality of our food, products and excellent service.
It Is approximately 60 sq m with a outdoor veranda area. It has a very low rent and low overheads. It is in an excellent location right in the middle of one of the busiest areas of town. So it has fantastic potential.
If you have any further questions please don't hesitate to contact me on this email address bluelake1964@yahoo.com

Are you the owner of a friend of his? I've been through Friendship many times but I don't remember seeing a "Cafe Deutschland".

When it was making 300k a month, what was the operating cost, overhead, product cost, and how much in bribes did the owner have to pay per month?

How did you find this site? Not many expats in Angeles know about it.

Ha! you guys make me laugh. I am a friend of the owner. he needs some help this is real . look up restaurant reviews ,
for someone that wants the ability to live in pi with a perpetual income and not whore or drink himself to death this is for you .
There is no bribes its a restaurant ( Its not in fields ave) from jan to may was the good months then the wife got sick . so yes you have to watch and keep on top of your staff. they are the ones here that make or break a business. ask anyone that has owned a business here : )

NUMBERS PLEASE as per Winston's questions or just fill in the real blanks of my scenario. For a business that requires most of a couple's working hours, 300,000 in revenues is not very attractive unless perhaps gross margins are very high - like 80-90%. It's hard work, risky, requires significant capital, unstable (seasonal), but best case scenario (upside) is modest at best.

If its so great, why don't you go for it?