Thinking about Selling a Restaurant?
Do you have an exit plan when it’s time to sell? Thinking about selling a restaurant is only the beginning of a process that can take 6-12 months to complete. Preparing a restaurant properly before hitting the sales market can make the difference between, receiving a solid offer from a buyer or selling at a considerable loss.
The lack of details when it comes to the presentation of the restaurant will make all the difference between a restaurant selling or not. On an average only 30%-40% of restaurants listed actually sell to new ownership.
Improve your changes of your restaurant selling by following the EATS Restaurant Brokers–How to prepare a restaurant for sale TIPS:
Tangible Items:
Back of House– Make sure all equipment is cleaned and in working condition. Clean the hood systems, service the high-ticket equipment, and CLEAN. Remove any items that are not working or can be seen as an eyesore. Make a list of any items that are leased with the vendor’s contact information with pricing and terms.
Front of House– Remove furniture, tables, and chairs that are dirty, broken, or torn. Hire a professional cleaning company to clean carpet, flooring, walls, windows, if you can afford. Remove decorations that can be seen as dated or that are dirty or broken. Clean or updated bathrooms.
Mechanical Systems– Have an HVAC company service HVAC system and keep documentation.
Non-Tangible Items: Documentation is not only needed it’s required!
Financial Books and Records- When it comes time to prepare a restaurant for a potential sale, restaurant owners need to buckle down and collect and organize financial information. Clean financial records are one of the most important factors in selling a restaurant for top dollar.
Most buyers will want to see three years of Profit and Loss statements, and year-to-date monthly profit and loss statement. Once the buyer has signed the non-disclosure agreement and provided the Restaurant Broker with proof of funds, they want the financial information ASAP. Time KILLS deals, financial documents should be prepared to share once the buyer has been financially qualified.
Professionally trained Restaurant Brokers only represent the financial information provided to the IRS and not the 2nd set of Books of Records that is unreported.
Menus & Recipes- Create a recipe manual with all the recipes and measurements to provide to the new buyer. Restaurants that come with systems and manuals are more attractive to buyers that are new to restaurant ownership.
Vendor List- Create a vendor list to provide to the new buyer. The vendor list should include all utility companies, food vendors, and other vendor’s company name, contact information, and any lease arrangements with monthly price.
Equipment List- Create an equipment list for only items that a buyer can lift and take with them if they decide to move locations. Do not include any items that the landlord owns, these items will include attached fixtures like hood systems, walk-in coolers, sinks, and grease trap.
A professional trained Restaurant Brokers can assist restaurant owners in the preparation of listing a restaurant for sale. A Restaurant Broker with help with the overall marketing package for the restaurant to be listed on the buyer market for sale.
Who has time to pre-qualify prospective buyers, educated restaurant buyers about the buying process, and help all parties reach the closing table? The answer is a Restaurant Broker!
Thinking about selling or buying a restaurant contact EATS Broker. For more information on the restaurant market and other available consulting services or restaurant valuations, contact Dominique Maddox at 404-993-4448 or by email at sales@eatsbroker.com. Visit our website at www.EATSbroker.com
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Day in the life of a Restaurant Broker
What does a Restaurant Broker actually do daily? Dominique Maddox Founder and President of EATS Broker shares his thoughts about the Day in the life of a Restaurant Broker.
Restaurant Brokerage is like a BIG secret fraternity where there is limited membership allowed. A large number of people don’t know the responsibilities or tasks a Restaurant Broker has daily. I decided to track my activities on 9/11/2020 in a writing log.
5:15 am – Wake up and put on the 1st pot of coffee and drink water. Review my Cash Scoreboard with my to-do list for the day. Add any items that come to mind.
6:00 am- Arrive at the gym and go beast mode to get ready for the day.
7:15 am- Review closing documents, send reminder emails to buyers and sellers. Send wiring instructions to the closing attorney for all parties.
7:45 am – On the road to take pictures of a restaurant I recently listed for sale. I must arrive before the back of the house staff arrives so they will not be suspicious.
9:00 am- Conduct a conference call between a buyer and seller to discuss add-backs on the Profit and Loss statements, and why the POS sales number are different than Sales Tax Filings numbers.
9:30 am-Start responding to emails in my inbox and following up with the To-Do list for the day.
9:45 am – Call a landlord to discuss the lease assignment for the new tenant. Let the landlord know franchise training will be for 4 weeks, we should be able to close mid-October.
10:00 am -Follow up with a closing attorney that $10,000 buyer escrow has arrived
10:15 am – Review my CASH Report and touch all my pending deals. Start cold-calling for new restaurant seller leads.
11:00 am- Receive a call from a financially qualified candidate. The buyer needs help in understanding the price valuation of the restaurant. The buyer does not understand the definition of add-backs for a price valuation.
11:30 am- Send a potential seller lead a complimentary restaurant valuation. Seller sent a copy of a 2018, 2019, 2020 Profit and Loss statements for review 48 hours earlier.
12:00 am- Receive a call from closing attorney wire disbursements that have been made. I contact all parties expecting a payment to let them know to check their bank accounts for the deposit.
12:00-12:45pm- Mental break. Listen to some R&B, Jazz, and watch some ESPN or stock market show.
12:47-1:05pm- Conversation with a current seller client about buyer activity on his listing.
1:15pm- Receive email from the buyer that requests to see back of the house for a listing I’m advertising for sale. I call the buyer and they don’t want to sign a non-disclosure or show proof of funds.
1:40 pm- Follow up with Hungry Howie’s buyer to get some feedback on how the 4-week training is going.
2:05 pm- An interested buyer requests a copy of our Asset Purchase Agreement to review with the intent to make a formal offer. I draft the Agreement and sent it for review.
2:35 pm – Schedule a meeting between interested buyer and seller at the restaurant for Saturday morning.
2:50pm- Follow up with Papa’s Pizza To Go Area Representative to discuss the training schedule for the approved candidate.
3:10 pm – Review language in a 50-page lease to find out the option renewals, lease expiration date, security deposit, and any prohibited uses.
3:25 pm- Receive a referral from a Financial Advisor. His client has 3 sub sandwich franchises that he wants to sell and is interviewing Restaurant Brokers.
3:27 pm -Followed up with the lead and had a conversation with potential seller lead with 3 sub sandwich franchises.
3:50 pm- Request updated 2020 Profit and Loss statements from all seller clients, to provide buyers with updated numbers.
4:10 pm – Assist buyers with a business plan and give feedback for improvement.
4:25 pm- Read restaurant news related blogs, articles, and restaurant news updates
4:37 pm- Have a conversation with the seller that wants to increase the sales price because they need more money at the closing table.
4:50pm- Send website improvements for www.EATSbroker.com to the website designer to make changes
5:10 pm – Work on restaurant valuation for a potential client
6:15 pm – Conversation with Amaya about Dinner
6:45pm- Online looking for new seller leads and responding to any missed emails.
7:15pm – Start writing a new blog
Restaurant Brokerage is a contact sport, brokers that are uncomfortable with multi-tasking, a challenging career, or demanding clients will not be successful. The life of a Restaurant Broker is to be a Subject Matter Expert in the Restaurant Brokerage Industry.
EATS Restaurant Brokers was formed to bring a new flavor to the Restaurant Brokerage Industry!
Thinking about selling or buying a restaurant contact EATS Broker. For more information on the restaurant market and other available consulting services or restaurant valuations, contact Dominique Maddox at 404-993-4448 or by email at sales@eatsbroker.com. Visit our website at www.EATSbroker.com
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Dominique Maddox of EATS Broker sells Sidebar
Dominique Maddox of EATS Broker Sells Sidebar. EATS Broker represented buyer and seller. The new owner Chan will reopen Sidebar in the next 60 days. Sidebar was affected by Covid-19 and doors have been closed since March. Chan plans to make some improvements inside, improve marketing, and keep the legacy of Sidebar alive.
Dominique Maddox of EATS Broker says, “ this transaction was extremely satisfying because I helped a seller out of a tough financial position. Sidebar has been part of the Atlanta Downtown community for over 15 years. I can remember visiting as a customer while in college”.
Dominique Maddox is the President and Founder of EATS Broker and www.EATSbroker.com, a business brokerage firm specializing exclusively in restaurant franchise resales, restaurants for sale, bars, and nightclubs. After working with one of the nation’s largest restaurant brokerage firms for seven years, Dominique decided it was time to bring a new flavor to the Restaurant Brokerage Industry and founded EATS Restaurant Brokers.
Dominique Maddox has been selling restaurants since 2010 and has undergone intensive training in the Restaurant Brokerage Industry. Dominique attended Morehouse College on a football scholarship, he brings that same competitive spirit and energy to the field of restaurant brokerage.
EATS Broker are Restaurant Resale Specialists that can guide you thru the complex process of buying or selling a restaurant. EATS Restaurant Brokers is a full-service Real Estate Business Brokerage practice focused on the restaurant industry. Our company specializes in selling Restaurant Franchise Re-sales and Restaurant Sales. We also help clients with Restaurant real estate site selection, Tenant Representation, Franchise Consulting, and Business Price Evaluation.
Let us show you how Restaurant Brokerage is done with flavor!
Thinking about selling a restaurant contact EATS Broker. For more information on the restaurant market and other available consulting services or restaurant valuations, contact Dominique Maddox at 404-993-4448 or by email at sales@eatsbroker.com. Visit our website at www.EATSbroker.com
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Best Cities in the US for Foodies-Atlanta
Atlanta, Georgia is one of the Best Cities in the USA for Foodies. Atlanta is a food lover’s paradise with the diversity, history, and various geographical food hubs in metro Atlanta. Atlanta is one of the top 20 foodie cities in the United States, and for good reason. You can find any kind of food you could crave.
Dominique Maddox a Restaurant Broker and Founder of EATS Broker says,” Atlanta is not only the capital of Georgia but also home to the new Southern food movement. I started EATS Restaurant Brokers in Atlanta because the city has a booming food culture.
Atlanta has been ranked in Zagat’s 30 most exciting food cities in America. The city has been named one of the 50 foodie capitals of the world for it is 44 national cuisine offerings.”
Atlanta is known for more than its sports teams and Southern hospitality; did you know 14 of your favorite food chains started right here in metro Atlanta?
Applebee’s (Decatur 1980)
Cheeseburger Bobby’s (Kennesaw 2007)
Chick-fil-A (Hapeville 1946)
Flying Biscuit (Candler Park 1993)
Great American Cookies (Dunwoody 1977)
Huddle House (Decatur 1964)
LongHorn Steakhouse (Atlanta 1981)
Mellow Mushroom (Atlanta 1974)
Moe’s Southwest Grill (Atlanta 2000)
Taqueria del Sol (Atlanta 2000)
Taco Mac Sports Grill (Virginia-Highland 1974)
Ted’s Montana Grill (Atlanta 2002)
Waffle House (Avondale Estates 1955)
Varsity (Atlanta 1928)
Atlanta is the American South’s new foodie capital with over 12,000 restaurants in the metro area. Enjoy the southern charm or international influence in the food in Midtown, Westside, Downtown, Old Fourth Ward, Kirkwood, Buckhead, and East Atlanta.
Atlanta ranks high compared to other cities when it comes to food affordability and diversity. New York, NY ranks numbers #1, while Atlanta ranks in the top 20. Atlanta is an easy city to underestimate when it comes to food, but the city is starting to collect attention from some of the top restauranteurs in America.
Thinking about selling a restaurant contact EATS Broker. For more information on the restaurant market and other available consulting services or restaurant valuations, contact Dominique Maddox at 404-993-4448 or by email at sales@eatsbroker.com. Visit our website at www.EATSbroker.com
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