Catering With Benefits (3) - An Appetite for More - 7. You’re Very Distracting

“Good day, is that Craig Simpson?”

“Yes.”

“I’m Prentice, I was given your number by that male nurse who was looking after me in hospital.”

“That would be Romel.”

“Probably, now he tells me you may be interested in my business.”

“Yes, we are looking to expand our business and in need of a commercial kitchen.”

“Well, we’re not just a kitchen.”

“Oh, I realise that Mr Prentice. What I meant is, it’s the need for a commercial kitchen that first interested us in your business, but since my partner and I have been to your restaurant and had time to think about it, we are definitely interested in running it alongside our catering service.”

“When you say catering service, how do you operate?”

“We provide food and waiting services for private functions anywhere from private homes to function rooms.”

“That’s interesting, do you know there is also a function room at the rear of the restaurant?”

“No we didn’t see that. We only saw the restaurant, bar and a quick visit to the kitchen. May I ask Mr Prentice, have you put the business on the market yet?”

“No, I’ve not long decided to sell. In fact today is my first full day at home after discharge. I will be going in tomorrow to talk to the staff about my decision and then my wife and I will plan our course of action for the sale.”

“In that case, could I ask that we be given first offer, once you have decided on a sale price?”

“You’re a pushy one aren’t you?”

“Keen maybe, Mr Prentice.”

“Don't get me wrong, I like ambition. Good to see.”

“Thank you, so is that a yes?”

“Let’s talk some more in a few days when I’ve had a chance to talk to my solicitor and a business broker. I’ll have a better idea then.”

“In that case, may I suggest something that may save you some unnecessary expense.”

“Go ahead.”

“If we can negotiate privately rather than go through a broker, you will save thousands in fees.”

“I like the way you think Simpson, and you also think if I save money then you might get it cheaper.”

“That could be a deal sweetener. After all, the best deal is a win, win deal.”

“Ok, I’m keen to get this done. So what say we meet at the restaurant on Thursday, and discuss business over lunch? I’ll also introduce you to my manager and chef. Both good men, and expert at their respective jobs.”

“I look forward to it, and I’ll also bring my partner, Justin.”

“Your business partner is that?”

“And life partner as well.”

“I thought you said Justin, I suppose you said Justine.”

“No, it’s Justin, my partner is a male.”

“Oh!...yes...of course. I look forward to meeting you Simpson, and your...partner.”

<>

“Justin, where are you?” Craig called as soon as he hung up.

“Coming...what do you want?” Justin answered as he entered the room, totally naked and still towelling his hair.

“We’ve got a foot in the door.”

“What foot, what door, what are you talking about.”

“While you were washing that delicious body of yours, I was doing business.”

“A new gig?”

“Probably our biggest.”

“Wow, Cynthia’s going to outdo herself and try to top the Australia Day party?”

“No, I’ve started negotiations with Prentice for acquiring his restaurant. He just called and we have a meeting on Thursday over lunch at Poppy’s.”

“Oh no, not more weird French food again?”

“I’m sure Charlie could rustle up a steak for you. But probably better if you don’t comment on the cuisine, we’ll be there to impress the owner so that we get first option at making an offer to buy.”

“I’ve been meaning to ask about that. How do you buy a restaurant, how do you know how much it’s worth? It’s not like buying a car or even a house. Apart from the furniture and equipment I read there’s something called good will and maybe even intellectual property.”

“You have been doing your homework.”

“Yeah, still trying to adjust that balance between brain and brawn.”

“Now, we need to talk about strategy before we go to this meeting. But before that can you put on some clothes, you’re very distracting.”

“Hey, maybe that’s a good strategy. If I turn up like this and distract the owner, you might be able to get a better deal past him.”

“I support most of your ideas, but this one definitely not and besides he sounds very straight and probably unfamiliar with gay relationships. So it may be a wasted effort. Serving you up to him would be like serving you fine French food.”

“It was meant to be a joke.”

“I know, and sorry about the French food crack.”

***

Before going to the meeting Craig warned Justin not to appear too keen as this might give the owner too much confidence that they were an easy target. During the meeting, Justin showed a level of maturity and restraint that surprised Craig at first and then made him very proud of his partner.

“Don’t think you’ll be able to screw me on this deal. This place is my baby that I started from scratch. I’m giving it up reluctantly, on my doctor’s advice, but I won’t let it go cheaply.”

“Of course not, a good deal is a deal where both sides benefit.” replied Craig.

“Ok, now we understand each other, what can I tell you about the restaurant?”

Justin spoke up “Mr Prentice, you said you started the business from scratch, can you tell us about that.”

“Sure young man, a good question. It’s important that you know the history of the business you’re buying. When I first bought this place it was a rundown Chinese restaurant that was about to go belly up. Not surprising really, I mean who eats Chinese food anymore. The place was a total mess. The dining room was just an empty barn of a place with the obligatory red lanterns and fans on the walls and the kitchen had not seen a mop in years. Money must have changed hands somewhere to stop the place from being closed down. Either that, or the local health inspector feared for his life if he went in there. So we gutted the place and started with four blank walls. We put in a complete new kitchen and dining room furniture and decor. Then part way through the renovations my wife came up with the idea of the bar. She loves mixed cocktails and thought that would add a unique touch to the place. Getting our liquor licence was an exercise in extreme patience, dealing with the bureaucracy at the liquor and gaming board. But my wife is persistent if nothing else. She also has a flair for decorating and designed the bar area.”

“So you work well as partners?”

“Yes, we kept to our own areas and that has served us well.”

“We are much the same Mr Prentice.”

“Is that so? Well I guess you are then.”

“What about the food?” asked Justin. While Prentice was answering, Craig gave Justin a warning look. Justin wasn’t sure if Craig was telling him not to mention his dislike for French food or not to mention that they new Charlie. He decided that either way he would say nothing more.

“Then I brought in Charlie our chef to design the menu, but I have to admit he wasn’t keen at first when I wanted to go French. However he’s a true professional and took up the challenge.”

“I’ll show you around later but it’s worth mentioning that there is additional unused space on the other side of that wall, if you want to expand the dining room. It has been used as a retail space in the past, but we’ve left it vacant since the last tenant left. Well, I say left but in reality they were taken away.”

“What do you mean?” asked Craig.

“It was operating as a Chinese herbal medicine shop. Sure they were Chinese and their products were mostly herbal but I doubt they could be classified as medicine. It turned out it was a front for the drug trade. I wasn’t happy when I heard about this so I was about to evict them when my wife suggested that might be risky as they probably had connections to people who would not take kindly to eviction.”

“So how did you get them out?”

“It seems there was, shall we say, an anonymous tip off to the local police and they did the rest.”

“Can you tell us about the function room?”

“Ah now that’s entirely a new venture that we built. The space behind the building had been used as a dumping ground for abandoned kitchen equipment and was overrun with weeds, except for a few parking spaces. It was also home to stray cats. Funny thing about the cats is they multiplied like mad after the Chinese restaurant closed. Anyway, one day I got a contractor in to clean up the area and it was then I realised how large it was. I knew how valuable land is in this area, so I asked around to see if we could find a use for it. I was thinking maybe some shops or flats, but access was a problem from the narrow back lane. Then over the next few months we had a number of bookings for private parties. These were good revenue earners, but it meant closing the restaurant to the general public and that didn’t go down well with our regulars.” Prentice paused to take a sip of his wine.

“So, that’s when you decided to build the function room.” asked Craig

“Yes, unlike stand alone buildings like shops or flats, the function room could be accessed via the restaurant, so that solved the problem of access.”

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The lunch with Prentice went well and the negotiations went well. They left the meeting with a price they thought was within their means if all other enquiries supported the business’s viability as a going concern. Their next step was to consult a business broker to give an appraisal of the business’ value. While waiting for that they talked to their bank and their solicitor. Craig also spoke to his father, Harry Simpson, who was supportive, but cautious. He trusted his son’s judgement, but warned him to do all his sums first, before making any commitment. Craig probably did not need this warning as he had inherited his father cautious nature. Harry Simpson, an accountant, wrote to Prentice and asked for the audited financial records of the restaurant business. They were duly supplied via Prentice’s accountant and given a tick of approval by Harry Simpson. Craig then felt confident to approach his bank with a definite business plan and a formal loan application.

<>

When Craig asked Prentice for details of the property’s landlord, he was pleasantly surprised to learn that Prentice owned the building and consequently would be their lessor.

“The rent will of course depend on how much of the building you need and how much of the business you want to buy.”

“Do you mean you will split the business into components?” asked Craig

“I will if you don’t want to buy the whole package. As I see it, we could split the business into restaurant, bar, function room and I’ll look for a tenant for that small retail shop on the side of the building. We’ve left it vacant since the last tenant left, just in case we needed the extra space to expand the restaurant.”

“Interesting options, I had not considered that. But I’m pleased to hear you are willing to do this, because my bank is a bit shy about giving me the finance to buy the whole package.”

“I can understand that.”

“Then can you send my accountant a split up of the asking price for each component?”

“No problem. We costed each component separately when estimating the value of the business. I’ll call him now and you should have the figures tomorrow.”

“Thanks, that might make this whole deal move faster.”

***

A week later, with support of Craig’s bank, the deal was done and contract of sale and leasing agreement were drawn up for the restaurant only.

“So when do we sign the papers and make it officially ours?” asked Justin, excitedly.

“About a week but the deals done already.”

“So can we?”

“Yes, you can tell our friends now. I know you’ll burst if I make you wait any longer.”

“Great, I’ll call them all now and we can have a drink at the Sleaze Bar....No wait I’ve got a better idea. Let’s shout drinks at the restaurant bar and then anyone who wants to stay on for a meal can do their own thing.”

“Ok, I’ll help with the phone calls.”