Kebab House in Øygarden: Current Status and Outlook

The kebab house industry in Øygarden is a small but growing sector with a single business in focus. The only registered business, Umre Pizza & Kebab As, has shown robust growth in both sales and number of employees over the past few years. The industry is concentrated in Ågotnes, and the development indicates potential for further growth, even though there is limited data on competition. The broader fast food category in the municipality has more businesses, but shows more variable development.

Sales and employee development:

• Sales: From NOK 425.2K in 2016 to NOK 7.6M in 2024, with an average annual growth of 22.5%.
• Employees: Increase from 1 to 11 employees between 2016 and 2026, with fluctuations in between.

Key figures from Ågotnes:

• Operating income: NOK 7.7M
• EBITDA margin: 5%
• Gross profit margin: 64%
• Sales growth: 14% annual in 2024.

Financial challenges: The business has total debt of NOK 846.0K and negative equity (NOK -164.0K), but shows positive operating profit (NOK 381.0K) and EBITDA (NOK 392.0K).

Registered companies:

• Umre Pizza & Kebab As (Vestsidevegen 672, Ågotnes):
• Organizational form: AS
• Founded: 2016-06-01
• Number of employees: 11
• Bankrupt: No
• Sales: NOK 7.7M
• EBITDA: NOK 392.0K
• Gross profit: NOK 5.0M
• Total debt: NOK 846.0K

Organizational form statistics:

• 100% of the businesses are AS entities, indicating a certain level of formal structure and investment in operations.

Activity in the municipality:

• Ågotnes is the only location with activity in the industry.
• Key figures for Ågotnes:
• Number of companies: 1
• Number of employees: 11
• Operating income: NOK 7.7M
• Sales: NOK 7.7M
• Gross profit: NOK 5.0M
• Sales growth: 14% in 2024.

Geographic position: Ågotnes is a central part of Øygarden, with good access to roads and potential customers. This supports the industry's growth, even though there is limited data on competition.

Bankruptcies and financial challenges:

• No bankruptcies registered in the industry in Øygarden.
• Financial data for Umre Pizza & Kebab As:
• Total debt: NOK 846.0K
• Equity: NOK -164.0K
• Operating profit: NOK 381.0K
• EBITDA: NOK 392.0K

Employee development:

• Fluctuations in the number of employees over the years, with an increase from 1 to 11 employees between 2016 and 2026. The most significant increase occurred in 2017 (+200%) and 2026 (+22.2%).

Outlook for Entrepreneurs

Growth potential:

• The kebab house industry in Øygarden shows strong growth in sales and number of employees, with an average annual growth of 22.5% in sales and 11 employees in 2026.
• Geographic advantage: Activity concentrated in Ågotnes, a central part of the municipality with good access to customers.

Challenges:

• Financial challenges: The business has negative equity and high debt, which could be a challenge for future development.
• Competitiveness: With only one business in the industry, it is possible to establish oneself, but it is important to differentiate in a competitive market.

Recommendation: Entrepreneurs should consider establishing themselves in Ågotnes, where there is good access to customers, and focus on achieving stable financing and differentiation of the offering.

Comparison with broader category:

• The fast food category in Øygarden has 4 businesses, while the kebab house industry has only 1.
• Sales in the fast food category: NOK 14.5M in 2016 to NOK 22.0M in 2024, with an average annual growth of 6.5%.
• Employees in the fast food category: Greater fluctuations, with a maximum of 49 employees in 2018 and a decline to 31 employees in 2025.

Peer businesses:

• Baker Brun As Avd Sartor (bakery):
• Sales: NOK 8.2M
• EBITDA: NOK 902.7K
• Number of employees: 12
• Kamilla Klepsland (food truck):
• Sales: NOK 0
• EBITDA: NOK 0
• Number of employees: 0

Conclusion: The fast food category shows more variable development than the kebab house industry, but shows growth potential in certain years. The kebab house industry has a more stable development, but is less represented in the municipality.

The kebab house industry in Øygarden shows strong growth in sales and number of employees, with a single business in focus. The only registered business, Umre Pizza & Kebab As, has shown robust development over the past few years, even though there are financial challenges to consider. The industry is concentrated in Ågotnes, a central part of the municipality, which supports the growth potential. The broader fast food category in the municipality has more businesses, but shows more variable development. Entrepreneurs should consider establishing themselves in Ågotnes, where there is good access to customers, and focus on achieving stable financing and differentiation of the offering. SmartGrunder can help entrepreneurs find suitable addresses in the municipality for this industry.