97 replies to this topic

[Mike K.]

$75k take-home at the end of the day is not a bad gig. I wonder why they're selling? It was only a two years ago they were in expansion mode with both Pig and Big Wheel Burgers.

[VicHockeyFan]

It's only 110 meals served per day.  I dunno.  It can be hell to find labour for small places.

[VicHockeyFan]

Now you can buy

 

$75k take-home at the end of the day is not a bad gig. I wonder why they're selling? It was only a two years ago they were in expansion mode with both Pig and Big Wheel Burgers.

 

Now you can buy the last one for $399,000

 

https://www.realtor....Columbia-V8W3S2

 

You can't build this kind of success story at this price with these profits. Skip the hard part and jump to the end where you work one hour per week and bank real money with food that everyone already loves. 

 

 

This guy must have been selling used cars before he got into real estate.

[Matt R.]

^ Steve Da Cruz is a seasoned restaurant industry veteran from New York to Vancouver.  He owned a few nice spots in Vancouver, managed a bunch more.  He knows what up with the F&B industry.

 

Matt.

[Mike K.]

This guy must have been selling used cars before he got into real estate.

 
Yikes. It's hard to take his claims seriously when you read the harsh criticism diners are leaving behind. Whatever has changed at Pig, it's not good.

 

Are they planning to be at Brewery and the Beast?

[Matt R.]

Pig has always been a bit hyped up, hasn't it?  Trays with parchment paper and water in mason jars and all that? 

 

I don't doubt for a moment that it's successful and lucrative, for a restaurant at least.  Figure with a selling point of $400,000 it probably nets in the $150k range on sales of $1.5m maybe?  Either that or it's over priced.

 

 

The rest of it's just one salesman's opinion.

 

Matt.

 

ETA: I'd like to think that Pig grosses more than $1.5m, but the selling price indicates net profits in the $125,000 range which means a poor margin on pork.  I wonder.

Edited by Matt R., 19 September 2016 - 09:12 PM.

[Bingo]

Pig has always been a bit hyped up, hasn't it?  Trays with parchment paper and water in mason jars and all that? 

 

The rest of it's just one salesman's opinion.

Matt.

 

I've never understood the hype over pulled pork. Give me 4 slices of double smoked crispy bacon anytime.

[Mike K.]

I don't doubt for a moment that it's successful and lucrative, for a restaurant at least. Figure with a selling point of $400,000 it probably nets in the $150k range on sales of $1.5m maybe? Either that or it's over priced.

I think if you were around and saw how slow its become, or read the most recent reviews, you'd see it's no longer the place it once was.

First they closed their second location, then their food truck started appearing less and less at events, and now the flagship location is for sale.

The sale price indicates it has an annual profit of around $80k, not $150k. You value a business at five years profit, sometimes as high as 10, but that would equate to $40k-$80k and not $150k, but I suspect the annual take home is closer to $50k than $80k, as you want a listing with some room for negotiation.

I'd be surprised to see it sell for over $250k. It's likely draining funds fast and has a lease with one option for renewal. You can't take that to the bank if you expect about a decade to pay off the initial investment and turn a meaningful profit when working one hour a week, as our salesman says is the case.

[Matt R.]

Restaurants are often valued at 3 year profit.

The rest of that is just sad.

Matt.

Edited by Matt R., 19 September 2016 - 10:01 PM.

[Mike K.]

Yup, I think you're right on the 3 year appraisal for a restaurant. I guess there's just that much more risk involved.

 

It's crazy, Pig was once-upon-a-time doing so well, and then, suddenly, something changed and regulars noticed their piglicious fix just wasn't cutting it any more.

 

And we've still got a healthy market for BBQ food. Consider that Jones is now open and attracting a lot of clientele, as is Hanks on Douglas Street.

[Matt R.]

I stand by my numbers, based on asking price anyways. It's just a guess based on what I think the discretionary income might be.

Things may have gone down hill, the market could have more competitors now than ever, but there's no reason why this wouldn't be a tidy little business for a good operator. Location is sound, reputation can be rebuilt although the listing doesn't mention an asset sale. Wonder if the name and brand are included in the price?

Matt.

[Matt R.]

Also, no bank would lend an applicant $400,000 to buy a restaurant unless the applicant had about the same amount to put up as collateral.

Matt.

[VicHockeyFan]

I say turn it into a McDonalds.

[Bingo]

I say turn it into a McDonalds.

I agree, a high end McDonalds with white table cloths, silverware, and servers at your table.

[Mixed365]

Pig has always been a bit hyped up, hasn't it?  Trays with parchment paper and water in mason jars and all that? 

 

I don't doubt for a moment that it's successful and lucrative, for a restaurant at least.  Figure with a selling point of $400,000 it probably nets in the $150k range on sales of $1.5m maybe?  Either that or it's over priced.

 

 

The rest of it's just one salesman's opinion.

 

Matt.

 

ETA: I'd like to think that Pig grosses more than $1.5m, but the selling price indicates net profits in the $125,000 range which means a poor margin on pork.  I wonder.

I think you are right. Sales are probably around 1.5M. That would make an appropriate cap rate. 

[Mixed365]

^ Steve Da Cruz is a seasoned restaurant industry veteran from New York to Vancouver.  He owned a few nice spots in Vancouver, managed a bunch more.  He knows what up with the F&B industry.

 

Matt.

Although he is a seasoned veteran, I think he is doing a huge disservice to PIG by not having professional photos. We all know it is an AMAZING space in an UNREAL building. 


https://www.realtor....Columbia-V8W3S2

[VicHockeyFan]

Although he is a seasoned veteran, I think he is doing a huge disservice to PIG by not having professional photos. We all know it is an AMAZING space in an UNREAL building. 


https://www.realtor....Columbia-V8W3S2

 

I agree.  Maybe they are coming.

[Mike K.]

I'm going to have to disagree with the $1.5 million annual income theory.

I'm order number 63 for the day, and nobody has ordered since I arrived (I'm in the restaurant as I write this). My order cost $6, taxes in, as the pulled pork is discounted come 3PM. The server said they typically see 150 orders in a day, sometimes 200.

Anyways, to bring in $1.5 million a year they'd need to be selling around 400 sandwiches a day, plus extras, which seems incredibly high. If my order is any indication for 5PM on a weekday, the won't end the day above 100, max. Even at $20 per order that'd be only $2,000 gross for the day.

[Bingo]

I'm going to have to disagree with the $1.5 million annual income theory.

I'm order number 63 for the day, and nobody has ordered since I arrived (I'm in the restaurant as I write this). My order cost $6, taxes in, as the pulled pork is discounted come 3PM. The server said they typically see 150 orders in a day, sometimes 200.

Anyways, to bring in $1.5 million a year they'd need to be selling around 400 sandwiches a day, plus extras, which seems incredibly high. If my order is any indication for 5PM on a weekday, the won't end the day above 100, max. Even at $20 per order that'd be only $2,000 gross for the day.

 

Best before 3PM?

[jonny]

$75k take-home at the end of the day is not a bad gig. I wonder why they're selling? It was only a two years ago they were in expansion mode with both Pig and Big Wheel Burgers.

 

Because they figure some sucker will pay $400k for a small restaurant.

 

What is the $400k for? I certainly hope it's not for their recipes. I have smoked better meat than anything I have ever had at Pig using randomly googled recipes.

 

One of my life dreams is to open a BBQ joint. If I spent nearly half a million dollars to do so, it would be one hell of a place, let me tell you.