THE RESTAURANT GUY

 BUYING

Doing a little bit of homework, and some detective work can assure you are buying the right business and will increase your potential for puchasing and owning a successful and profitable

restaurant.

• What type of restaurant do you want?  Full service or nightclub.  What type of menu?  Franchise or Independent?
• Where do you want your restaurant?  In an urban area?  On the beach?
• How much do you have to invest?
• Is your resume ready?  Be sure to include business ownership, management experience plus current financial status

When you have these questions answered, we can begin to search

for a business.  Once you have

decided to make an offer, our research will begin.

• Review. the records and sales for the current year and atleast 3 years prior.  Have your accountant check them out.
• Check records. of the health department, liquor licensing and any other agencies that assess the business.
• Look at management competency.  Management is critical to the success of the business, so make sure they are efficient.
• Recent developments that may change or affect the business, service or food should be investigated?  
• Cleanliness of the restaurant.  A clean restaurant is usually a restaurant that has been cared for. 

SELLING

Put yourself in the buyers shoes.

What is important to you is going to be important to them.  If your business doesn't meet standards you would

use to buy a business, it won't meet

the standards for buyers either.

• Cleanliness.  A clean, well kept restaurant speaks loudly.  It shows you care about the business and shows prosective buyers they are investing in a healthy establishment.
• Profitability.  Keep good books and use an accountant.  If your restaurant isn't profitable, or can't be proven profitable, it is hard to get top dollar.
• Staff.  Buyers will usually want to keep employees.  Positive, cheerful employees indicate the restaurant is on the right track.  If necessary, do some housecleaning to get rid of disgruntled employees.
• Reputation.  Buyers will be looking into the reputation of the restaurant.  The reputation in the community will be their success as well as yours.
• Licenses.  Make sure your paperwork is in order.  Health reports, liquor licenses and staff training need to be up to date and in place.
• Lease Transferability.  If your remaining lease term is short, negotiate a new lease prior to listing your restaurant.  An inadequate lease tops the list of "deal breakers".

Gary Mulini

The Restaurant Guy

ABC Brokerage

407.260.1222

gary@abcbrokerage.com