Popular Japanese F&B Chain For Sale

Year of Inception: 2016
TTM Revenue (Trailing Twelve Months): SGD $2.75 million
TTM Seller's Discretionary Earnings: SGD $630K
Asking Price: SGD $1.8 million to $1.9 million
Reason for selling: Retirement
Seller Financing: Yes

Fey Day presents a popular Japanese F&B business for sale that has started since 2016. This business is well-known for their food quality and reasonable pricing, hence there are a lot of returning customers. They have 2 outlets and there are plenty of food bloggers who wrote about them too. This Japanese F&B brand sells through dine in and take aways option via the common channels such as GrabFood, Deliveroo). They have gathered more than 1,700 reviews (4.4 / 5 on Google, FaceBook, Tripadvisor, Deliveroo, GrabFood) and operates 2 outlets located in central part of Singapore.

Their affordable pricing caters to the mass market, while ensuring a healthy operating profit margin of 22% in the F&B sector. Most of their main dish set cost between $15 - $26. (Before service charge and GST)

The business is largely self-running. One of the owners spend 2 days per week in the kitchen (one day per outlet), whereas the other owner spend 1.5 days per week handling service operation and administration. Both outlets are located at shopping mall, near private residential area.

Outlet 1 (Central) - 915 sqf
Lease expiry : August 2026
Monthly rental - $15,000 + 0.2% GTO or 12% GTO (Whichever is higher)
Headcount - 11

Outlet 2 (Central) - 1,173 sqf (Recently signed on a 2 + 2 lease agreement)
Lease expiry : April 2027
Monthly rental - $14,910 currently ($16,102 from April 2025 onwards)
Headcount - 12

1 additional part time marketing employee handling social media.

Total headcount: 26 (Including 2 owners who are working part time (1 to 2 days per week), and 1 part-time marketing employee handling marketing/ social media)
Total Headcount Workpass: 1 EP, 1 SPass, 9 WP, 11 Singaporeans and 4 PRs.

13 suppliers, with 30 days credit term.

What to love about this business?

1. Strong cashflow business
2. 22% EBITA margin
3. Scalable via increasing number of outlets or franchising
4. Low Employee Turnover rate
5. Financially healthy company with no liability
6. Strong brand equity with plenty of returning customers
7. Low marketing expense

What are the potential areas to grow this business?

1. Increase the presence on various delivery platforms
2. Open up more outlets or franchise it in Singapore
3. Build customer database, and kickstart a customer engagement loyalty campaign
4. Explore strategic partnership with specific brands
5. Launch into Malaysia, Hong Kong or Vietnamese market

What is involved in this deal?

1.⁠ ⁠The recipe, entire operation team, lease agreement, operational know-how, kitchenware, furniture and intellectual property.
2.⁠ ⁠This can be a share purchase or asset purchase.
3.⁠ ⁠Owners are willing to stay on during the transition phase for up to 1 year.