Wednesday, September 11, 2019

[UPDATE] Bareburger Midtown Up For Sale

Barely 15 months after opening, Atlanta's lone Bareburger restaurant is up for sale.  The restaurant, located at 715 Peachtree Street in Midtown, opened in late May 2018, and is a franchise of the New York-based eatery.  Steve Josovitz of The Shumacher Group, who is handling the sales offering of the restaurant, describes the eatery as a "Midtown Atlanta “In Your Face” Location on Peachtree Steps From The Fox Theatre, Universities, Malls, Business, Buckhead, Highways & Everywhere."

The 3,000 square foot restaurant features inside seating for 120 with a 1,500 square foot outside patio with seating for an additional 50.  An inside bar has seating for 13 plus high-tops. 

Bareburger features a menu similar to places like Farm Burger, but at much higher prices.  ToNeTo Atlanta dined at the Midtown location earlier this year and was shocked to be spending about $60 for two with two burgers, a shareable fries, and a single wine purchased.  A shareable sweet potato fries at Bareburger is $8.99 compared to $3.99 for a comparable offering at Farm Burger.  A simple 16 oz. shake is also $8.99 at Bareburger compared to $4.95 for the same size shake at Farm Burger.  

In fairness, Bareburger is table service, whereas Farm Burger is counter service, but the food was simply not deserving of the sizable pricing discrepancy.  Notably, Bareburger was one of the only restaurants we know of to feature both the Beyond Burger and the Impossible Burger on their menu.  

The restaurant has received 165 reviews on with an overall 3.5 star rating.  

According to the sales listing, the business is profitable: 

"June 2018 to June 2019 – $960K Gross Sales January 2019 – June 2019 Gross Sales was $520,168 and net = $67,912 + business consulting fees + lawyer fees + owner payroll = $107,912 or $140,912 with SBA Loan Payment added back in. ($5500 monthly loan payment or $66,000 annually would apply to Net Profit if Buyer has no debt structure)"   

Negotiated rent terms:  Rent period from Feb 2017 to August 2027: $9,385 per month + $1,100 per month in CAM (Common Area Maintenance) 

The owners, who are reportedly selling the business due to an out-of-state relocation, spent a reported $1 million to open the restaurant with the help a $500,000 SBA loan.

The offering invites would-be restaurateurs to "Keep or Convert" to any full service or casual concept except for a coffee bar, given the existence of Land of a Thousand Hills Coffee in the 715 Peachtree building.

Bareburger's proposed sale comes as neighboring Midtown burger franchise Burgerim recently closed and Atlanta-based healthy burger joint Farm Burger recently opened at the new Whole Foods Market at 14th Street between West Peachtree and Spring Streets.  

The Bareburger business is priced at $495,000. 

Are you surprised to see Bareburger for sale?   What is your favorite Midtown burger joint?  If Bareburger is sold and "converted," what would you like to see open in its place?

Please share your thoughts below.  


CloseOTP said...

Totally agree with you on the price point. Haven't eaten in the Atlanta one, but ate at a NYC location. Food is good. But I'm not paying NYC prices in Atlanta. This location pays $10K in rent. I bet a NYC location pays $25-30K. I'll pay more for food when rent is higher. This pricing is a money grab that clearly isn't working. The owners leaving the state is not the reason because if it were doing so well, they'd hire someone to run it.

Anonymous said...

Prices were sky high from day one. Went in with a friend after they first opened and it was not very busy, food just so-so. One entire end of the bar was taken up with what appeared to be the owners/managers; sitting there on there computers and bossing people around. Very off putting. I think they thought being across from The Fox would get them a customer base willing to pay for those high prices. A show at the fox and then nice pricey burger across the street.

Tres said...

Wow...I didn't even know we had one of these here. I thought it was just a New York thing.

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