Important Questions to Ask Yourself When Buying a Restaurant
Why is the Restaurant for Sale?
1. Restaurant owners my be tired of owning the restaurant and the responsibilities that come with owning a restaurant. Perhaps they want to retire or are moving away. Other common problems are family health issues or personal issues that may be affecting their availability to operate the business.
2. Their profits may not be enough to cover costs and overheads, this may be due to poor management or not enough demand. This is important information to know prior to buying a restaurant.
Will the restaurant be successful?
Predicting the success of a business is not that easy. However, there are things you can do as the buyer to eliminate some of that risk. Things to look at include:
Looking at income taxes for the business will give you a general idea of monthly costs, overheads, and average income needed to operate. If you have never owned a business, having a prior understanding of food costs, labor costs versus liquor and food sales will make sure you plan correctly to having a successful business. A non-disclosure may be needed to assure the owner that their information will not be shared to other parties.
You’ve heard the expression: “location, location, location”. Location is crucial for restaurants as they tend to attract a significant percentage of new customers. Things like ease-of-access and available parking also play key factors in the success of a restaurant. Unless you are already familiar with the restaurant, asking those questions and knowing the answers before hand can help you make a better decision.
Do You Have What It Takes?
Being a business owner will always be hard work. Being a restaurant owner can take over your life. Restaurants demand a lot of time, effort and passion. Behind every successful restaurant there is a very hard working owner or manager devoting endless hours to its success.
If you have what it takes, let Jan Wild help you find the right restaurant for you. He will help along every step of the process, from getting the loan, to processing all paperwork. It makes this process that much easier for you.