Should I get this Pool Hall?

ignomirello said:
Should I do this?

How much would you pay for a Pool Hall that has no chance of getting an alcohol license?

Owner sells very little food.

Seller wants $13 Sq Ft for lease rental. Lets say $65k/yr

Expenses are about 4.5 times Square footage without Payroll. Approx 23K/yr

Income is 27 x square footage *lets say 135K/yr

$135k-65k-23k = 47K
47k LEFT TO PAY EMPLOYEES & MYSELF
@$10+/HR = $21k/yr

Pros: leveraged out. Very little money in. Income can be driven up with food.

Cons: Won’t sell building. No off street Parking. (Might be a problem filling up room). Many updates needed. Baths/Software. Roof is over 25 yrs old. No chance of getting liquor license at this location.

Question is will the business make me Money or will I just be marrying a job?
Click to expand...

I hadn't read all the posts, sorry. But what immediately strikes me is the current
biz runs @ $5500/month rent with revenue of @ $11k. Pass the KY on that 50% ratio...

Why in your opinion is this biz doing a paltry $11k per month? :eek: And what could you do to improve upon it? And why did you call it "income" and not "revenue"?

Is it triple net?
Demos are trending how?
Table time currently runs how much?
How much in assets do you get?
What marketing efforts have there been?
Can you install stripper poles?

Good luck...
 
thanks for your reply

KoolKat9Lives said:
I hadn't read all the posts, sorry. But what immediately strikes me is the current
biz runs @ $5500/month rent with revenue of @ $11k. Pass the KY on that 50% ratio...

Why in your opinion is this biz doing a paltry $11k per month? :eek: And what could you do to improve upon it? And why did you call it "income" and not "revenue"?

Is it triple net?
Demos are trending how?
Table time currently runs how much?
How much in assets do you get?
What marketing efforts have there been?
Can you install stripper poles?

Good luck...
Click to expand...

thanks for your reply
 
You can't pay the bills off table time....My 2 friends just a year ago last Sept. took over a failing pool room...They right now after 11 months are being very successful...
How'd they do it?? Alcohol, food and specials...Like, buy $35.00 worth of food and liquor, your table time is free for 1 hour...Happy hour beer specials....Ladies play free on Thursdays...League players get 50% off table time on Wednesdays and Saturdays.....
Then they have a good amount of business working on pool tables...Moving them...Covering the tables...Repairs on tables...At your home or in the store...A pro shop selling billiard equipment and dart supplies... You can't make it on table time with no liquor or food...Just my opinion but I saw how they turned this failing pool room around in 11 months....And that's how they did it...
 
Basically, this is your primary condition:
If you can't make at least $100,000 take-home after expenses, walk away.
A business owner puts in 60-100 hours weekly and needs that minimum level of compensation.
 
thanks!

allanpsand said:
Basically, this is your primary condition:
If you can't make at least $100,000 take-home after expenses, walk away.
A business owner puts in 60-100 hours weekly and needs that minimum level of compensation.
Click to expand...

well 100K would be nice :-) but it will take some time for my crew to get it there.
 
ignomirello said:
Thanks for your input Andrew :-) Paying the big bucks for the License won't be the problem. The problem is the City/Town won't allow it. :-(

I have the right people in place to get the leagues started & food up to par. I think the main 2 things are Parking/Alcohol. I can get the people there but like I said will they stay without off street parking? Only metered parking during the day is another negative.

Thanks Again Andrew

See you soon,
Iggy
Click to expand...

Iggy, if you do end up taking on this venture, I'd be more than happy to help with your menu. Few know it, but I'm a very good cook and could/would be a professional chef if not for what I actually do. Shelmpris, smiley, debreo etc can vouch for me. So can my scale...
 
Haven't read all the replies...but...

Who would you sell this place to when you want to retire?
There's no alcohol sales, and therefore, no chance of any upside. The buyer will have to commit to a lot of risk, sign a personal guarantee on the lease, work for basically nothing, and with no chance at the american dream.

No alchohol...no parking...=no business-=no profit!!!!!!

RUN AWAY

ALCOHOL IS THE ONLY REASON ID CONSIDER A POOL HALL...ASIDE FROM THAT, IT'S A NON-PROFIT ORGANIZATION, EVEN WITH PARKING!!!!!!!

RUN, FOREST...RUN
 
ignomirello said:
Should I do this?

How much would you pay for a Pool Hall that has no chance of getting an alcohol license?

Owner sells very little food.

Seller wants $13 Sq Ft for lease rental. Lets say $65k/yr

Expenses are about 4.5 times Square footage without Payroll. Approx 23K/yr

Income is 27 x square footage *lets say 135K/yr

$135k-65k-23k = 47K
47k LEFT TO PAY EMPLOYEES & MYSELF
@$10+/HR = $21k/yr

Pros: leveraged out. Very little money in. Income can be driven up with food.

Cons: Won’t sell building. No off street Parking. (Might be a problem filling up room). Many updates needed. Baths/Software. Roof is over 25 yrs old. No chance of getting liquor license at this location.

Question is will the business make me Money or will I just be marrying a job?
Click to expand...

No way... I wouldn't consider it an option without the ability to sell alcohol. That's what fuels the pool halls that are barley open now. Without it you might as well close the doors now while your ahead.
 
There is an obvious reason he wants to lease to you... he is not making enough money running it. Save your time, effort and cash.
 
Here in the LA area, there is a pool room that has been around for awhile that is still up and running, and it doesn't sell beer/liquor. Hard Times in Bellflower, CA. Please keep in mind that Hard Times is an extremely rare example!

Hard Times has very rich history, a tournament room where you can smell the sweat and tears of grinders and pros (if the walls could speak!), and a big parking lot. It also has legendary pool players coming in for action and tourneys. Good equipment, the Gold Crowns are clean and tight. The humidity is so tough, SVB refuses to play money games there. The tough tables are a good training ground, seems like the Pinoy contingent likes the humidity. It has golf tables, bar coin-op tables, and 3-cushion tables. It also has a big parking lot. Oops, did I say that already? The point of me talking about HT is to compare to your potential room without selling beer/liquor. But, like I said, HT is a rare animal indeed. No liquor, still open.

Please don't underestimate the importance of being able to sell beer/liquor. There are millions of bars across the country that don't have pool, but there are hardly any pool rooms that don't sell beer/liquor.
 
wow i'm so glad all of you AZer's have all this knowledge!!!

God I want this place so much I have so many friends in the pool world.

I feel like not only am I doing it for me But for the Pool/Billiards world.

But I do understand that the pool / Billiard world won't pay my bills if things go bad.

The owner keeps on telling us YOU can do this You can do that But if it was so easy why didn't he do it?

I think I have great ideas & i'm going to hire people that know the Pool/Billiards business.

So now i'm looking at it as a challenge.

Thanks everybody & keep your ideas & opinion coming until this is a dead deal I'm still open for ideas.
 
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