Sell Restaurant Quickly
As a buyer of property, we buy quickly and transparently we look at the lease or freehold first and the business secondly, as if the business is not viable then we have to consider the viability of the bricks and mortar.
We come across a great number of restaurants every day about selling their cafe, takeaway or eateries for any number of reasons:
- Cashing out with profits after years of building the business
- A death of a spouse
- Financial difficulties are a few to mention
The route for many sales is a business broker or agent that will list your business at a price and wait for someone to bite. Before even considering a sale there are a number of preparatory steps. The first is getting an idea of the value of the restaurant. Typically it is broken into 5 areas
Bricks and Mortar
There is the value of the bricks and mortar, then the value of the business. Typical questions that you need to be prepared for are;
- Is it freehold or leased?
- If a lease, how many years is on the lease?
- What are the conditions of the lease?
- What would it cost to buy the freehold?
- Are you responsible for the maintenance of the building if it is a lease?
- What’s the condition of the property?
Many buyers will need to know the answers to;
- What is the footfall in the area?
- What makes the location so unique?
- What type of clientèle does the business attract?
- What is the competition?
- What’s the seasonality of the business?
Obviously no one is going to buy a restaurant at ‘top dollar’ if the restaurant is shambolic. So ask yourself the following questions and answer honestly;
- What is the dinning area like?
- What maintenance is needed to get to a level to achieve a top price?
- Do the kitchen appliances need an upgrade?
- Would you eat in it?
- What is the website like?
- What is the status of your social media – e.g. How many likes do you have on Facebook?
Any one buying a restaurant is going to ask pertinent questions about the business;
- What is your turnover?
- What is the profitability?
- What the assets worth?
- What’s the average diner worth?
- How many covers per week?
- What are your running costs?
A managed restaurant with good management and staff can be viewed as revenue stream for a buyer as opposed to a job. These assets can have a great value than one that is managed morning, noon and night. Questions to consider are;
- How long the staff have there?
- CV’s of staff?
- Character profiles?
- Management profiles
- Summary of who would staff and leave
- Would it be easy to recruit if certain staff members left?