Business Overview:
This business is a Barbecue lovers paradise! This is a Barbecue supply store that is a one stop shop for all of your grilling needs. They have been in business since 2015 and offer everything that comes to mind when grilling such as gas grills, charcoal grills, Green Eggs, all sorts of seasonings, rubs and sauces, all sorts of charcoal brands, all sorts of wood chips/chunks for smoking meats, and several accessories and apparel to go along with your grill or outdoor kitchen. They moved to their new location in Denton County in 2020 and have seen annual sales double since.
Rising disposable income, retiring baby boomers and increasing home investment are projected to continue to support spending in the BBQ and Outdoor Cooking Stores industry over the next five years into 2026. During the same time period, rising consumer confidence and per capita disposable income will drive many consumers to invest in upkeep for their homes and yards, including their outdoor kitchens and grills.
The BBQ and Outdoor Cooking Stores industry has been rekindled the last five years preceding 2021. Rising per capita disposable income and leisure time have revived discretionary purchases on outdoor cooking equipment such as barbecues (BBQs), smokers and related accessories. As the economy improves, consumers are more likely to purchase new equipment to replace the aging equipment that they already own, or purchase secondhand items. Equipment that this industry sells tends to have a relatively long lifespan but is susceptible to wear and tear, so consumers continue to replace or upgrade outdoor cooking equipment every few years. Additionally, amid the COVID-19 (coronavirus) pandemic, an increase in at-home cooking and stay-at-home orders have supported demand. Consequently, industry revenue is expected to report an annualized increase of 2.0% over the five years leading into 2021, including a surge of 9.5% in 2021 to $7.8 billion, driven by an increase in residential construction and outdoor cooking upgrades as the economy recovers.
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Property Features and Assets:
The business is located in a newer high traffic retail commercial strip center in Denton County, TX with multiple other businesses nearby. Neighboring businesses consist of a Massage Spa, Chiropractor, Dentist, Salon, LA Fitness, several clothing stores, several fast food chains, Restaurants and even a Walmart. The business leases this space from the landlord on a triple net lease @ approximately $3,500 per month. The business gets great exposure to potential customers and has doubled its revenue since moving to this location in 2020.
Assets = $168,873
Market Competition and Expansion:
This industry is dominated by four major companies that together account for an estimated 58.6% of industry revenue in 2021, making this industry moderately to highly concentrated. Concentration is expected to rise further over the next five years as the major players fight to increase market share through price-based competition and brand expansion. Given the fact that the industry's life cycle is in the mature phase, a higher level of merger and acquisition activity is one method of industry growth. Many large businesses have been acquiring smaller establishments as a method to grow and maintain their market share. The remaining segment of the industry is composed of small-scale players that usually only have one location and serve a small geographic region.
IBISWorld identifies 250 Key Success Factors for a business. The most important for this industry are:
Ability to control stock on hand: Operators need to ensure that adequate stock controls are in place to reduce inventory costs and increase stock turns.
Proximity to key markets: Operators should be located in areas with high retail exposure to maximize exposure to consumers.
Attractive product presentation: Operators should clearly display products in an appealing manner to promote purchases.
Experienced work force: Employees that are knowledgeable regarding the products sold in their department are able to recommend the proper products to customers.
This business has one full time employee but per the owners it needs 2 full time employees and a full time owner/operator to truly run this business at full optimization. Also, the addition of a website for online marketing and e-commerce sales can drastically increase revenue. The owners also suggest holding regular cooking demonstrations or classes with some of the grills that the store offers for sale to assist with educating the public about how to use some of these products to their full potential and to also offer tastings to demonstrate the high quality cook that one can have with these types of grills.
Reason for Selling:
To allow the time to focus on their other business
Additional Details:
- The property is leased.
- The owner is willing to train/assist the new owner.
- This is not a homebased business opportunity.
- This is not a franchise resale opportunity.
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