Time to sell your restaurant? How to defend your listing price
When it’s time to sell your Restaurant, how do you plan to defend your listing price? This question is excellent for anyone considering hiring a Restaurant Broker or For Sale by Owner.
It’s easy to think of a random number, list a restaurant for sale, and answer buyer inquiries. Selling a restaurant is like fishing; it’s time to make the catch when a customer is interested (a fish bite).
Dallas Restaurant Broker Dominique Maddox says, “The Restaurant Story is an opportunity to help buyers visualize themselves as part of the story. An experienced Restaurant Broker will explain the Restaurant’s financial, staffing, liabilities, food cost, and startup story to interested buyers”.
The 3 rules of defending your listing price:
Rule #1
Tell your Restaurant Story: The number one question buyers ask a Restaurant Broker when inquiring about a restaurant for sale is, why are they selling? Once this happens, it’s time to tell the Restaurant Story.
The Restaurant story is the message/description of opportunities that should be provided to the buyer. Buyers want a background of the Restaurant’s current and past operations, growth opportunities, and why the restaurant owners are selling? It’s time to sell the “Sizzle” of the Restaurant to the buyer.
Each Restaurant will have a different Restaurant Story, but the core of the stories will be the same. They will include the total expense of the rent, labor, and cost of goods (COGS); these three categories should be 60%-70% of gross sales.
Rule #2
Clean Books and Records make a BIG difference: Good bookkeeping and accounting help the odds of a restaurant selling. Once the seller and the buyer agree to the terms of the Purchase Agreement, the due diligence process starts.
Buyers will request several financial documents to verify the Restaurant’s operations and profitability.
The documents most requested from buyers include:
-Tax Returns
-Profit and Loss Statements
-Sales Tax Filings
-POS Sales Reports
-Franchise Royalty Reports
-Bank Statements
-W-2s for Owner/Operator or manager replacing an absentee owner
When it’s time to sell a restaurant, owners should check and verify all financial documents tell the same Restaurant Story. A Restaurant Owner can make or break a deal if the financials tell multiple stories. Buyers are looking at financials with suspicion and analyzing every line item.
Restaurant Broker Tip: The Restaurant Owner keeping two sets of books and records or cheating the IRS on tax payments will hurt the chances of your restaurant selling.
Rule #3
Repair and Maintenance-The lack of maintenance in a restaurant can hurt the chance of the Restaurant selling to a new buyer. Buyers will inspect the Restaurant and equipment for flaws and repairs needed.
A neglected restaurant appearance or broken equipment gives a buyer a great reason to reduce the offer price. Restaurant owners should focus on the Restaurant’s presentation before listing a restaurant for sale.
These three rules help any restaurant seller defend its listing price when it’s time to sell a restaurant.
To learn more about EATS Broker consulting services or receive a complimentary restaurant valuation, contact Dallas Restaurant Broker Dominique Maddox at 404-993-4448 or email at sales@eatsbroker.com. Visit our website at www.EATSbroker.com.
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Top 4 Biggest Myths about Selling a Restaurant
Many restaurant owners share the Top 4 Biggest Myths about selling a restaurant. Selling a restaurant is much different from selling other businesses, and many restaurant owners will only sell a restaurant once in their lifetime.
When it’s time to sell a restaurant, a large percentage of restaurant owners have common misperceptions about the process.
Dallas, Texas Restaurant Broker Dominique Maddox says, “There are NO guarantees when selling a restaurant, and every deal has unique stipulations and obstacles that somebody must overcome. Restaurant owners that believe common myths about selling a restaurant are commonly disappointed”.
The 5 Biggest Myths about selling a restaurant are:
- Every deal is the same: Restaurant owners that have bought or sold a restaurant in the past sometimes believe every deal process is the same, and this belief is far from the truth. Each Asset Purchase Agreement has several small details that make a big difference.
Things to consider in each deal:
-Selling a profitable restaurant or an Asset Sale
-Selling a Franchise or non-franchise
-The buyer’s profile
-The landlord approval process
-The Franchise approval process
-Bank lending required or cash deal
-E-2 investor requirements
-Closing Attorney involved
-PPP or EIDL payments owed
-Sales Tax Filings
-Equipment repair requirements
- I will receive my asking price: When selling a restaurant, everything is negotiable, but the rent amount is owed to the landlord. The negotiation process between the buyer and the seller will determine the terms of the deal.
Restaurant owners can list a restaurant for sale, stating they want to recoup their equipment purchase price, build-out cost, or loan payoff balance, only to be disappointed. The market will determine the price of your restaurant.
Cash buyers are usually more aggressive in their offer price. Restaurant owners should expect offers at least 10% lower or more than the asking price.
- Time to sell a restaurant: The average time to sell a restaurant is 150-165 days, but this is only an average. Only 20%-30%of the restaurants listed will sell to a new buyer, and most restaurants for sale will sit on the market and never sell.
Only 2%-5% of the buyers looking to buy a restaurant will buy. Some deals are more like a slow cooker instead of a pressure cooker. Restaurant Sellers want a quick sale, while some restaurant buyers are not ready for quick closing.
- The Landlord is your partner: When dealing with a lease assignment approval from the landlord, some restaurant owners think the process is simple. Most owners have not reviewed the lease document they signed when opening the restaurant, and owners usually do not know what requirements are needed for lease assignment approval.
The Golden Rule when dealing with a landlord is that they are not your friend, and the landlord is looking out for their best interest in collecting future rent. If the landlord has a well-qualified restaurant owner as a lease guarantor, why would they approve a lease assignment for a questionable potential tenant?
The landlord can decide if a deal will make it to the closing table. Should the restaurant owner feel comfortable only in leases that don’t require landlord consent or have written auto-approval language for franchises.
Selling a restaurant can be a complex process. Hiring the right Restaurant Broker and understanding the selling process can make all the difference.
For more information on the restaurant market and other available consulting services or a complimentary restaurant valuation, contact Dallas Restaurant Broker Dominique Maddox at 404-993-4448 or email at sales@eatsbroker.com. Visit our website at www.EATSbroker.com
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EATS Broker sells a downtown Dallas, Texas Restaurant
EATS Broker sells a downtown Dallas, Texas Restaurant in the Mosaic Dallas building at 300 N Akard St, Dallas, TX 75201. EATS Broker was the Intermediary for the seller and buyer for this transaction.
The restaurant is in a luxury, high-rise living community in downtown Dallas, Texas. Near the Arts District, Klyde Warren Park, and the Majestic, this is the perfect location to accommodate affluent young adults desire for convenient and delicious food.
The seller has owned the restaurant since 2019. He plans to take a few days off and move on to his next business venture, and he will be exiting the restaurant Industry.
The buyer has big plans to make improvements to the location. He brings years of General Manager experience working in Corporate Franchise restaurants. EATS Broker was excited to help him realize the American Dream of business ownership.
Christopher was a Petty Officer 3rd with the US Navy. He will bring that discipline and work ethic to his first restaurant. He plans to upgrade the menu offerings, create new recipes, and change the business name.
Texas Restaurant Broker Dominique Maddox of EATS Broker says, “the new owner will bring a new perspective and leadership style to the restaurant. I’m thankful he trusted EATS Broker to help him with the buying process”.
Selling a restaurant can be a complex process. The duties of a Restaurant Broker included presenting an opportunity and helping a buyer reach the closing table. EATS Broker did its job on this listing to get it sold, and it’s on to the next.
For more information on the restaurant market and other available consulting services or a complimentary restaurant valuation, contact Dallas Restaurant Broker Dominique Maddox at 404-993-4448 or email at sales@eatsbroker.com. Visit our website at www.EATSbroker.com.
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Challenges to Selling a non-franchise Restaurant
The Challenges to Selling a non-franchised restaurant differ from those selling a franchise brand. Restaurants that are Franchises are out selling independently owned restaurants for several reasons.
How often have you heard someone talk about opening or owning a restaurant? For the most part, our society loves the fantasy of restaurant ownership.
When it’s time to buy or start a restaurant, restauranteurs have to decide to join a Franchise Brand or start a non-franchise restaurant. The owners that prefer 100% ownership will choose to begin in a restaurant that is not a franchise.
The decision to open a restaurant that is a non-franchised restaurant can save a substantial amount of start-up money required for a franchise brand. Instantly restauranteurs save on the following items
–Development Fee ranges from $5,000-$50,000
-Royalty Fees range from 3%-10%
-National Marketing Fees
-Required Training cost
-Restaurant Equipment requirements
-Design requirements
Dallas, Texas Restaurant Broker Dominique Maddox says, “the initial fee to start a non-franchise restaurant is usually lower. When it’s time to exit, the restaurant valuation is generally higher for Franchise restaurants.
EATS Broker challenges to selling a non-franchise restaurant are:
Restaurant Valuations: Non-franchise brands usually will have a lower sales multiple compared to National Franchise Brands. The multiple is based on several considerations:
-Company strength
-Number of units open
-Longevity of brand
-Brand Goodwill
-EBITDA
Restaurant Valuation example:
Non-Franchise Brand: $100,000 (EBITDA) x 2.x (multiple) = $200,000 listing price
Franchise Brand: $100,000 (EBITDA) x 3x (multiple) = $300,000 listing price
Good Books and Records-Non-Franchise restaurants do not have a universal accounting system like most Franchise Brands require. The restaurant owner of an independently owned restaurant doesn’t have any checking their number for royalty and marketing fees.
Owners have the freedom to be creative with their books and records. Unorganized financials hurt when it comes to reselling a restaurant. Non-franchise restaurants with books and documents that are not clean or look fake rarely sell.
Restaurant Broker tip: Restaurant owners should confirm that tax returns, profit and loss statements, and sales tax filings tell the same story.
Buyers may request the following financial documents from sellers:
-Tax Returns
-Profit and Loss Statements
-Sales Tax Filings
-POS Sales Report
-Credit Card Statements
-Bank Statements (this is rarely provided in restaurant sales transactions)
Training and Support-New buyers are on their own to learn the concept, operations, employees, and marketing. The buyer usually completes no formal training before or after the sale transaction.
A training schedule can be agreed upon on the Asset Purchase Agreement, but it’s up to the restaurant seller to coordinate and execute. Once the restaurant is sold, the support usually ends from the previous owner.
Unlike a franchise brand with a training program, vendor relationships, and a support system, non-franchise brands may only have vendor relationships.
For more information on the restaurant market and other available consulting services or a complimentary restaurant valuation, contact Dallas Restaurant Broker Dominique Maddox at 404-993-4448 or email at sales@eatsbroker.com. Visit our website at www.EATSbroker.com
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Want to sell your restaurant? What Restaurant Equipment do you own?
Want to sell your restaurant, and it’s time to create an equipment list? What Restaurant equipment do you own as a restaurant owner? This seems easy to answer, but most restaurant owners misunderstand what they own when leasing a restaurant space.
The landlord is responsible for creating a lease to protect their interest when leasing a restaurant space. The restaurant owner is responsible for reading the lease to understand the terms.
Texas Restaurant Broker Dominique Maddox says, “ restaurant owners are shocked when they find out they don’t own any fixtures in the restaurant. The key items in a restaurant like the hood system, grease trap, sink compartments, walk-in coolers/freezers, and misc. Belong to the landlord”.
When selling a restaurant, a restaurant owner must create an equipment list to provide to interested buyers. The Restaurant Broker at EATS Broker requests an equipment list from restaurant owners ready to sell a restaurant before it goes on the market.
Restaurant owners are asked only to provide restaurant equipment that they own. The equipment list and details will differ from restaurant owner to owner, and restaurant owners unfamiliar with the language in their lease usually provide an incorrect equipment list.
A restaurant that is not profitable or closed will be listed as an Asset Sale. Selling a turn-key restaurant fully equipped as an Asset Sale is an excellent opportunity for buyers looking to create their own concept. Restaurant buyers will be curious to know the restaurant equipment involved in the sale.
The Restaurant Broker at EATS Broker creates an equipment checklist to consider:
Items Restaurant Owners should keep off an equipment list because they are attached to the building:
-Walk-in coolers
-Walk-in freezers
-Grease traps
-3 compartment sinks
-Hood system
-HVAC systems
-Tankless water heater
***Leased Items should not be added either***
-Fountain Drink Dispenser
–Dishwasher
–POS System
-Refrigeration, if provided by the vendor
This blog was written to help restaurant owners create an equipment list that reflects what they own and can be removed from the building. Next time when making an equipment list, restaurant owners should ask themselves do I own this equipment?
For more information on the restaurant market and other available consulting services or complimentary restaurant valuations, contact Dominique Maddox at 404-993-4448 or email at sales@eatsbroker.com. Visit our website at www.EATSbroker.com.
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Why are Asset Sale Restaurants HOT right now
Asset Sale Restaurants are HOT right now because several restaurant owners that need to sell were not profitable in 2022. What is an Asset Sale when it comes to selling a restaurant? An Asset Sale is a restaurant that is not profitable or makes minimal profits.
An Asset Sale is priced for its Furniture, Fixtures, and Equipment (FF&E). Restaurant owners can expect a listing price of 20%-30% of the original cost. Restaurant owners are shocked when they discover that the walk-in cooler, hood system, and other fixtures are not included on their equipment list. Fixtures belong to the landlord and are not sold to the new buyer.
Usually, an Asset Sale will return Restaurant owners only pennies on the dollar of their original investment. Asset Sales prices typically range from $50,000-$300,000 or more. Restaurants with significant leasehold improvement or a good location are easier to sell.
Texas Restaurant Broker Dominique Maddox says, “An Asset Sale is an excellent opportunity for a new buyer to save money on opening a new restaurant. Franchise brands have started looking for second-generation restaurants and Asset Sale restaurants to save money on the build-out cost of opening a location.
Asset Sale Restaurants for sale are piling up on the market, and buyers have a number to sort through to find the right opportunity. When selling a restaurant that is an Asset Sale, the Restaurant Broker must tell the correct “Restaurant Story” to the potential buyer.
What are the WINS for the Restaurant Owner that sells a restaurant that is an Asset Sale
–Selling a restaurant that is not profitable
-Have a chance to get off the lease as the Personal Guarantor sooner than the signed lease expires
-Receive a fraction of the original investment
-No longer have to work in the restaurant
-No longer have to stress about restaurant operations
-No longer have to worry about paying the Restaurant Bills
-No longer have to stress about employee/labor issues
Restaurant Owners, when selling a restaurant as an Asset Sale, you probably will not get the sale price you want. Buyers like buying a profitable restaurant for sale that have solid books and records over an Asset Sale.
The buyer who purchases an Asset Sale is taking a risk if they continue operating the restaurant with the same concept. They will want a discount on the price to take that risk.
For more information on the restaurant market and other available consulting services or complimentary restaurant valuations, contact Dominique Maddox at 404-993-4448 or email at sales@eatsbroker.com. Visit our website at www.EATSbroker.com.
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Selling your Franchise Restaurant
Are you thinking about selling your franchise restaurant in 2023? We have finished the Holiday season, and now it’s time to get ready to start a new year with new challenges. Some of the most seasoned restauranteurs, managers, and employees exited the restaurant industry in 2022.
The challenges of labor rate inflation, labor shortage, food inflation, and Covid relief funds no longer available will have some restaurant owners ready to sell in 2023. Selling a franchise restaurant has different challenges than selling an independently owned restaurant.
Texas Restaurant Broker Dominique Maddox says, “selling a franchise restaurant is more complex than selling a non-franchise. Regarding Restaurant Franchise Resales, you are dealing with transfer fees, restaurant upgrades required, training requirements, and Franchisor approval”.
Selling a Franchise Restaurant vs. a Non-Franchise restaurant has pros and cons for each transaction. Franchise Restaurants’ popularity keeps growing, and more franchise restaurants are opening daily. Franchise resales usually get more buyer inquiries compared to non-franchise brands.
EATS Broker lists the differences between Selling a Franchise Restaurant vs. Non-Franchise -Pros and Cons.
Selling a Franchise Restaurant: Advantages
- Books and records are usually clean and accurate. Franchise Brands will require Franchisees to have an updated POS Sales System to track sales.
- Restaurant Valuations are usually higher because the multiple ranges from 2.5x-3.25 ex. ($100,000 profit x 2.5 = $250,000 listing price)
- Franchisees benefit from the Franchisor’s trade Name, logo, goodwill, and trademark secrets.
- Landlord approval for a lease assignment or a new lease can be more accessible. Landlords like having franchise brands in their shopping centers.
- Bank lending is more likely to be approved when applying to buy a Franchise Brand.
- Franchisors will provide training support to Franchisees. A Franchise Business Consultant offers ongoing support.
Selling a Franchise Restaurant: Disadvantages
- Franchise Royalties are collected weekly or monthly from the gross sales. Franchise royalties range from 3%-12%.
- National Marketing Fees are collected weekly or monthly from the gross sales. The fee ranges from 1%-5%
- A transfer Fee is required when a current Franchisee wants to sell a restaurant. The fee ranges from $5,000-$50,000, depending on the Franchise Brand.
- Required training for new franchisees can range from 2 weeks-12 weeks. Buyers are usually required to pay for travel and lodging.
- Remodel costs or upgrades can be required before a Franchisee can sell to a new buyer. These costs can range from $10,000-$200,000 or more.
- The Franchisor has to approve the new buyer.
- Preferred Vendors are usually in place, and Franchisees don’t have the flexibility to shop with other vendors.
Selling a Non-Franchise Restaurant: Advantages
- Fewer requirements to get a deal done
- Buyers don’t have extra fees when buying a franchise restaurant, like royalty or marketing fees.
- Don’t have to worry about Franchisor not approving the new buyer
- No training is required before a new buyer can take ownership
- Non-franchise restaurants transactions can closer quickly
- A new buyer can change the concept if the landlord approves
Selling a Non-Franchise Restaurant: Disadvantages
- Books and records have a better chance of not being accurate or don’t exist.
- Landlord approval for a lease assignment or new lease can be challenging if the new buyer doesn’t have restaurant experience.
- Restaurant Valuations are usually lower because the multiple ranges from 1.75x-2.5x ex. ($100,000 profit x 1.75 = $175,000 listing price)
- Training a new buyer is informal and sometimes not enough to ensure the new buyer will be successful. There usually is no ongoing support.
- Non-franchise brands don’t have goodwill and brand awareness.
- Most don’t have systems or manuals for food preparation, operational, staff, or back-of-house procedures.
Which is better depends on the individual that wants to sell a restaurant and the buyer. Both concepts have pros and cons that should be considered when buying or selling a restaurant.
For more information on the restaurant market and other available consulting services or complimentary restaurant valuations, contact Dominique Maddox at 404-993-4448 or email at sales@eatsbroker.com. Visit our website at www.EATSbroker.com.
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Restaurant Owner-Do you have an exit strategy?
A Restaurant Owner should start planning an exit strategy before signing the lease. Thinking about the exit strategy should be as important as planning for the opening. It’s a known fact that 80% of restaurants close within five years of opening their doors or has a change in ownership.
Texas Restaurant Broker Dominique Maddox says, “Most restaurant owners EATS Broker talks with daily don’t have an exit strategy. The main deciding factors in selling a restaurant usually relate to partnership issues, divorce, health, debt issues, lack of sales, money, or just being tired.”
Restaurant Broker lists three critical things to consider when selling a restaurant and planning an exit strategy.
Lease Terms and Conditions-the ability for a restaurant owner to transfer the lease to a new buyer via lease assignment is a critical segment of the resale process. Most restaurant owners don’t understand the lease terms they sign and don’t know the requirement for an exit.
Clean Books and Records-When a Restaurant Broker list a restaurant for sale; we are only selling two things. It’s either selling a buyer a paycheck or used equipment. When buyers purchase a profitable restaurant for sale, they buy a “paycheck.” If the restaurant is not profitable, it’s considered an Asset Sale (used equipment). Profitable restaurants get the highest price valuation.
Reporting Financials to the IRS– It’s a known fact that restaurant owners write off many personal items and non-business related expenses on their tax returns or Profit and Loss statements. This strategy helps restaurant owners pay less in taxes.
Over-aggressive tax write-offs work if a restaurant owner is not trying to sell a restaurant. Restaurant Brokers would recommend that restaurant owners, 2-3 years before trying to sell a restaurant, keep clean and accurate books and records.
Franchise Requirements– When a restaurant owner that owns a Franchise brand wants to sell a restaurant, it’s different from an independently owned restaurant. The following are additional factors for owners to consider.
–Transfer Fee-how much is it?
–Training requirement- how long it the training and where training is conducted?
–Franchise approval process and requirements
–Restaurant Upgrades required- any major updates required soon?
–Franchise years left of Franchise Disclosure Documents (FDD)-how much is the renewal cost?
The Restaurant Business is one of the most demanding business segments to have success for an extended time. The ideal exit strategy helps the Restaurant Owner get into the right mindset about exiting the restaurant business and gives them a timeframe to think about.
Planning for an exit strategy is critical when trying to sell a restaurant. The Restaurant owner should consider what they plan to do after selling the restaurant.
EATS Broker is available to provide free, confidential restaurant valuations for all restaurant owners thinking about selling a restaurant.
For more information on the restaurant market and other available consulting services or restaurant valuations, contact Dominique Maddox at 404-993-4448 or email at sales@eatsbroker.com. Visit our website at www.EATSbroker.com.
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Why do Restaurant Brokers prequalify buyers
Why do Restaurant Brokers prequalify buyers before providing the restaurant name and financials? The answer is simple to protect the confidential information on the restaurant for sale. Restaurant buyers sometimes don’t understand the process of buying a restaurant and what’s involved. Many potential buyers understand they must first sign a Non-Disclosure Agreement (NDA) or confidentiality agreement.
After the Non-Disclosure Agreement (DNA) is signed, restaurant buyers expect instantly to get the name and financials of the restaurant for sale. Buyers sometimes will request a copy of tax returns, profit and loss statements, a copy of a lease, etc. A professional Restaurant Broker should now ask buyers to provide proof of funds once this occurs.
Why do Restaurant Brokers prequalify buyers? The short answer is that only 2% of buyers that inquire about a restaurant for sale will buy. A Restaurant Broker usually must communicate with 60-75 buyers before a restaurant is sold.
Dallas Restaurant Broker Dominique Maddox says, “we prequalify buyers by getting proof of funds in the form of a bank statement, brokerage statement, 401K, or letter from a banker before providing their name, address, and financials on our restaurant listings”.
EATS Broker reasons to qualify a buyer:
- To protect the confidentiality of the listing agreement, limit the number of buyers with the information on the listing.
- Ensure the buyer has enough liquid assets to be approved by the landlord.
- Ensure the buyer has enough liquid assets to be approved by the Franchisor.
- To confirm, buyers can put down 10%-20% for SBA lending
Protecting the confidentiality of our client’s listing is a top priority at EATS Broker. Once the buyer signs the non-disclosure agreement and submits proof of funds, we provide the name and financials of the restaurant for sale.
For more information on the restaurant market and other available consulting services or restaurant valuations, contact Dominique Maddox at 404-993-4448 or email at sales@eatsbroker.com. Visit our website at www.EATSbroker.com.
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What are the Hardest Restaurants to Sell?
The Hardest Restaurants to Sell have several issues that make it difficult to sell a restaurant. The grim reality is that only 30%-40% of restaurants listed for sale will be sold to a new buyer. Why do some restaurants sell, and others don’t?
We’ve seen it all, but these two concepts we will focus on for this blog can be the hardest to sell:
Not Profitable or Losing Money: Asset Sales
Selling a restaurant that is not profitable or losing money yearly is challenging. These types of sales are called Asset Sales.
Buying an existing restaurant sold as an Asset Sale is a quick path to Restaurant Ownership. The previous seller has done the hard work of building the restaurant, dealing with contractors, getting the permits, negotiating the term on the lease, and establishing the location as a restaurant.
CONS:
-Buying a restaurant that is losing money is a liability
-Lease Assignment is usually involved when selling a restaurant; the current tenant has already negotiated the lease terms.
-Buying used restaurant equipment, leasehold improvements, and goodwill. It can be hard to estimate restaurant value and offer price.
Sellers usually are only interested in what they “want” or “need” for the restaurant. The problem is that buyers don’t care and only put a value on the Furniture, fixtures, Equipment, and goodwill.
Restaurant Broker Tip: The Seller should be ready to negotiate on terms. The seller might not get the sales price and terms they originally wanted when listing for sale. Restaurant owners should consider the money saved on monthly payments for the remainder of lease obligations.
Example – Monthly rent $7,000 per month x 36 months left on the lease as personal guarantor
$7,000 x 36 = $252,000 savings!
Chef-Driven Concept:
Starting a restaurant is a Chef’s dream to have the ability to use their culinary skills to create unbelievable dishes. Chefs are trained to stand for hours and work in an intensive working atmosphere. Several chef-driven concepts don’t have written recipes; they are all in the Chef’s head.
Many chefs will burn out and want to sell to someone who can work demanding shifts.
CONS:
– Hard to find a trained chef with liquid assets to buy the restaurant and qualify for lease assignment with the landlord.
– Only a tiny minority of buyers looking to buy a restaurant are comfortable cooking in a commercial kitchen or have the desire to cook.
– The lack of documented recipes creates a problem with consistency
– Takes a certain level of culinary training and experience to be successful
Restaurant Broker Tip: These restaurant owners need to consider the importance of having a trained Sous Chef. The Chef needs to be skilled enough to operate the kitchen like the owner. When a buyer knows that an experienced Chef will stay on board once the restaurant is sold, it provides a certain level of comfort.
The restaurant owners need to have documented recipes with measurements to ensure consistency.
When trying to sell a restaurant that can be considered some of the Hardest Restaurants to Sell, owners should have realistic expectations.
For more information on the restaurant market and other available consulting services or a complimentary restaurant valuation, contact Dallas Restaurant Broker Dominique Maddox at 404-993-4448 or email at sales@eatsbroker.com. Visit our website at www.EATSbroker.com.
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