Location: Mount Calvary, WI
Luedtke’s Dine-N-Bowl is a bowling alley in Mount Calvary, WI. This small, eight-lane bowling alley serves as the town’s entertainment 325 days a year. Included in the bowling alley is a café area and arcade for additional sources of income. Revenues and expenses are calculated based on town population and inventory. All numbers are available in the spreadsheet.
For the model we have projected, the bowling alley has a weighted average cost of capital and internal rate of return of 19.3% using a proportion of debt to be about 50-50. The purchase price was about $250,000, and we found that a reasonable price to pay would be $245,500, which is quite close to the original amount.
We understand that facts can vary based on economy, season, and other entertainment opportunities built in the area. However, we based our numbers on the population, income, and comparative rates in the area.