Advice for Buying a Restaurant and Selling a Restaurant

Restaurant Brokers Report From Chicago Restaurant Show On New Trends

Posted by Robin Gagnon on May 23, 2016 2:00:00 PM

The restaurants brokers from We Sell Restaurants and their franchisees attended the world’s largest Restaurant Show this week in Chicago.  The sights, sounds and innovation on display remind us why we love this industry!


Here are some of the highlights and personal favorites.

45 Square Foot Kitchen of the Future.

One vendor had on display an entire kitchen outfitted with convection ovens, prep station, fryer, flat top45_square_foot_kitchen.jpg and refrigeration that fit into a 4 and 1/2 foot by 10 foot space!   They were turning out food as varied as duck sliders and pasta so the menu was not limited by the space.  As rents continue to rise in all markets, a supersize kitchen is no longer a luxury any restaurant owner can afford.  Getting your kitchen footprint smaller should be the goal of any restaurant and in the restaurant broker’s opinion, any franchise that doesn’t have a team focused on this mission is missing the boat.

Our Pick of Cool Products

Oil Handling Safety Chute. 

We saw a great product to move grease from the fryers to the grease trap with no risk of splash.  The portable box was lowered to the ground to capture the grease and then tilted, wheeled and upended to its new location completely hands free.  Most worker’s comp claims in the industry revolve around hot oil so any improvements for its handling is welcome.

Indestructible “Glass” ware

One vendor had a line at his booth to put on a helmet and take a swing at his plastic products that look just as great as glass but with the added bonus that it will not break!  Those taking a swing and hoping to shatter his product failed time and again as the blows bounced off. 

Turbo Pots

Special grooves in the pots concentrate the heat toward the pot removing loss of heat and cooking foods more quickly. 

Delivery Trucks with Cold and Hot spaces running On Solar and Electric

delivery_truck_of_future.jpgThe delivery truck of the future was on full display with plenty of openings to deliver your food hot or cold.  The added bonus to these trucks were that they were solar or electric powered.

Ice Cream that Doesn’t Melt

One vendor has a new product for dishing out ice cream at outdoor venues and fairs that gives you an amazing 8 hours of ice cold holding temperature.  Think “Yetti” except this is insulated ice cream drums, serving stations for gelato and more.

Other Notable trends.

Too Much of…

In the category of ‘we’ve seen enough already,’ the recycled carton industry was on over display with every form of food carrier put forward by multiple vendors. How many brown cartons do we need?

Bigger is better...

Hobart mixers as tall as the shortest restaurant broker (that would be me at just over 5’3”) prove this brand just gets bigger and better to meet demand.

What’s this doing at the Food Show?

We saw more than one company selling a “Body Shaper” that supposedly allows you stand on it for 10 minutes while it jiggles and wiggles your fat away and delivers the same benefit as running on a treadmill for one hour.  Still confused as to why this is at the food show but the view of this device in action was hysterical.   

restaurant_brokers_at_Food_Show.jpg

All in all, the Restaurant Show is a must for anyone in this industry.   The Restaurant Brokers logged over 12,000 steps, 200 samples, countless demonstrations and lots of good times in only one day on the floor. We tweeted some of our favorite moments that can be found on our Twitter account at this link and we’ve included lots of photos.

 

Topics: buying a restaurant

Ken Eisenband Scores in Top 5 for State of Florida in Number of Deals

Posted by Robin Gagnon on May 16, 2016 2:43:35 PM


We Sell Restaurants
Franchisee Ken Eisenband receives the prestigious “Dealmaker Award” for transaction volume landing in the top 5 for the state of Florida as well as the Million Dollar Club.   

Restaurant Broker Ken Eisenband, franchise partner of We Sell Restaurants, was recently honored for his succeKen_Eisenband.jpgss in deal making at the annual Business Brokers of Florida awards luncheon.  Eisenband was awarded the “Dealmaker Award” as one of the top five business brokers across the entire state of Florida for the most completed business transactions in 2015.  Eisenband was also named a member of the group’s Million Dollar Club for 2015. 

Top Producer, Ken Eisenband has owned and operated the Fort Lauderdale, Broward County franchise office of We Sell Restaurants since 2012.  This is his first year as a member of the Business Brokers of Florida (BBF).  We Sell Restaurants President Eric Gagnon says, “Ken is a definitely a top producer and when you consider that his competition consists of brokers that can sell all types of business, this feat is truly remarkable. His focus on restaurants exclusively does not limit but instead fuels his success. BBF reports that there are currently more than 1,400 members so ranking in the top five is truly an indication of the success he is having with the We Sell Restaurants system.”  Business Brokers of Florida or BBF states they currently have over 4,000 listings and maintain a database of over 16,000 sold businesses for market data comparisons.

Business Brokers of Florida (BBF) is a non-profit association made up of the leading business brokerage companies and agents throughout the state of Florida. It is the largest state business broker association in the country, and the second largest association of business brokers in the world.  According to the group’s website, “Members of BBF must demonstrate their expertise and ability in business brokerage when applying for membership. Once accepted as a member they must adhere to a strict code of ethics.”

We Sell Restaurants is a franchise business brokerage firm specializing in the restaurant industry. The We Sell Restaurants® brand is known nationwide for professionalism, industry knowledge and unmatched service in the sale of restaurants.  They can be found online at wesellrestaurants.com.

Topics: buying a restaurant

Latest Franchise Development Deals Announced - Restaurant Brokers Weigh in

Posted by Robin Gagnon on May 15, 2016 11:30:42 AM

The latest Franchise Time Development Deal Tracker is out and the Restaurant Brokers love to weigh in on this industry news. News on the street is that "four is better than three" with new deals signed for taking four new units to the street in South Carolina and Southern California. Old Chicago Pizza & Taproom is coming to  Greenville, Spartenburg and Horry County.  The first location will be in the booming town of Myrtle Beach South Carolina later this year.  The developer is long time entrepreneur Brent Collier. According to Franchise TImes, he has owned a fariety of franchises throughout his five-decade career, including The Melting Pot, Quaker Steak & Lube, Golden Corral and TGI Fridays, all of which he still owns today. The restaurant brokers see this as a great development deal and South Carolina is actually an often overlooked state for development since it's major cities (Columbia, Myrtle Beach) don't rank as "NFL cities" with millions of residents.  What South Carolina does offer is an excellent business environment, a very business friendly governor, along with being a right to work state.  All this plus good occupancy rates and continued building, make this a good choice for deal development.

Dealmakers-300px.jpgWhile Collier is going to South Carolina, the next four unit deal reported by Franchise Times is for Southern California where BMB Foods Inc. has agreed to open four Juice It Up! units.  This is a much tougher market for development as the restuarant brokers are hearing of significant slow downs in California.  These are linked to minimum wage discussions and the incredibly high cost of construction and permitting as well as limited space.  The Juice It Up! units going into this market have the advantage of being able to openin retail space versus traditional restaurant units where a grease treap and hood are required but our intelligence on the street says that California is a very tough market.

Pizza stays in the news with Pieolgy announcing a megal deal with Segovia Aslan Enterprises.  They are targeting their development in the Southeastern United States including Tennessee, Alabama, North and Sound Carolina and Georgia. This is a smart move and while real estate remains tight for additional franchise development, the restaurant brokers believe the South still has plenty of room for growth.  

The pizza trend continues with one of the fastest growing Uncle Maddio's franchisees in the system expanding into new markets.  These strong operators, Michael Holmes and his wife Alicia operate the number one sales unit for the chain and have have opened their third Uncle Maddio's pizza franchise in East Orlando, Florida. The couple opened their first restaurant in Tallahassee more than two years ago and a second one more recently according to Franchise Times. 

The latest two deal trackers show a lot of movement with Dickey's Barbecue Pit.  They have signed both a three-store development agreement for Central Ohio with Owner/Operator Kelley Millikin as well as a new 12-store development agreement with Michael Tucker, who originally committed to four stores for Indio, Moreno Valley and Redlands, California.  We continue to be surprised by the growth of this concept nationally as food costs are notoriously difficult to control in a barbeque environment but this Dickey's barbecue Pit appears to be tapping into strong developers for continued growth. 

The first Potbelly Sandwich Shop is opening in Iowa with franchisee Paul Goldammer at the helm.  The unit is opening across the street from the Iowa State University Memorial Union building. The restaurant brokers are glad to see the Potbelly concept expanding but always see a difficult start as the first unit in a market.  We'll keep an eye on this location.

As if hamburgers weren't enough, hot dog brand, Wienerschnitzel, has inked a three-unit development agreement with PBA Properties to build the brand throughout San Antonio, Texas. They currently operate with a signiificant presence throughout the Southwest, including 39 Texas locations. 

Nashville-based Excellent Taco LLC has inked a 20-store deal with Taco John's for Nashville and Chattanooga, Tennessee, with an option for 32 more locations. Principals Richard Reeves and Lawrence Lavigne are experienced multi-unit foodservice operators whose backgrounds include Jet's Pizza and World of Beer franchises, among others.

Captain D's LLC, a fast-casual seafood restaurant, reeled in new franchisee Amin Gulamali, a successful entrepreneur and business owner with more than 25 years in the convenience store, hotel and hospitality industries. Gulamali plans to develop three restaurants in the greater Orlando area, which will be the brand's first new restaurants in the market in nearly two decades. In addition, Ali Momin, Abrar Momin and Micky Patel, will add two new Captain D's to the Atlanta market in Lovejoy and Douglasville, Georgia.

The overseas explosion continues as franchises expand beyond the borders of the United States.  Franchise Times reports that Buffalo Wild Wings-backed,fast-casual pizza chain, PizzaRev, opened its first international franchise location, in Monterrey, N.L. Mexico, the first of 20 restaurants to be developed by Grupo Galería throughout Mexico City and the states of Mexico, Nuevo León and Coahuila.  This company has strong experience in Mexico and owns an expansive restaurant portfolio throughout Mexico, including a food distribution center and 42 Carl's Jr., four Buffalo Wild Wings and five IHOP restaurants. The group is the largest Carl's Jr. franchisee in Mexico.

BurgerFi, with 83 locations worldwide, has reached an eight-unit development deal for the State of Kuwait, with CEO Abdullah Ajrash of Austrian Business Development Group (ABDG), a leader in business development initiatives in the Middle East.  The restaurant brokers have seen the Middle East markets experience strong growth from American brands but we wonder when the market will reach a tipping point. 

That's our feedback on the development deal tracker.  Feel free to weigh in with your thoughts.  To view the latest restaurant for sale listings, follow this link. 

Visit Our Listings Online!

 

Topics: buying a restaurant

Restaurant Brokers Recap the International Business Broker Conference

Posted by Robin Gagnon on May 8, 2016 1:43:11 PM

The Business Brokers from around the world gathered in Orlando Florida last week and the Restaurant Brokers, Eric and Robin Gagnon were there.  Here are the highlights from the IBBA 2016 Spring Conference held May 2-7, 2016 in Orlando, Florida. 

The theme of this year's conference was: THE EXTRA DEGREE:  FIRE UP YOUR PERFORMANCE!  The focus was on that single extra degree in life and business that separates the good from the great. 

Gary Hoover, Founder of Hoover's Inc. was the Keynote Speaker.  His presentation was titled, "8 Keys to Building and Leading Great Enterprises."  We were struck as restaurant brokers by several things Mr. Hoover stated, including his position that technology isn't the latest widget, app or code based function.  Instead, technology, in his words, is “any better way of doing things."  That struck a chord with us as restaurant brokers since we were attending a conference full of business brokers and have invented our own "better way of doing things" in the industry which is the focus, specialized practice and disciple of handling restaurants only.  That system, along with our proprietary platform for handling business brokerage, the BOSS or Broker's Operations and Sales System is our technology. 

Eric_and_Robin_Donna_Appegio.jpgKeynote Speaker Gary Hoover wasn't the only first day guest to strike a chord with the restaurant brokers.  Donatella Arpaia with her discussion of Bringing The Heat: Lessons In Business, Life & Cooking" was our tweet worthy speaker with her lessons ranging from a story that has to resonate with any parent or child about her placement in the "Snail" versus the "Swan" reading group and one counselor's assessment of her potential.  This star from Food Network, successful entrepreneur, Iron Chef and more definitely outperformed an early read by a counselor who's gauge of a child's potential was obviously pretty far off target.  In fact, that counselor may have done her a great favor by focusing her effort on overcoming those early words.  The restaurant brokers are pictured here with this restaurant industry icon. 

In addition to speakers, there were also a number of Mastermind sessions.  These peer-to-peer sessions are conducted in a sharing format that allows attendees to tap into decades of expertise by learning the best practices of others.  Eric and Robin Gagnon, the Restaurant Brokers led two Mastermind sessions at the conference including "Establishing Yourself as an Expert in Your Field" and "Building Google Juice for your Business Brokerage Practice."  The two sessions were heavily attended by the business brokers where they learned tips from the restaurant brokers including how to use content marketing to establish yourself as an expert in the first session and why even your listings should be search engine optimized in the second.

Optional courses were also offered during the weeklong event and the Restaurant Brokers taught their popular Franchise Resales Course where other brokers learned how to launch a successful franchise resale practice.  Their course was desribed as a way for brokers to "Learn their tips for a revenue stream no business broker can ignore."  

Eric_and_Robin_IBBA.jpg

The IBBA conference concluded with the Awards Luncheon and Guest Speaker John Warrillow, Founder of The Value Builder System and Author of The Automatic Customer: Creating a Subscription Business in Any Industry.  HIs closing thoughts were on "Built To Sell" and the seven traits of companies that are in fact, "Built to Sell."  He covered items such as reducing reliance on any one key customer, supplier or employee as adding value to a business along with looking at how easy it is to grow a business model to five times the size through either acquisition, new geographic markets or product lines.  Lastly, he covered a key metric in the measurement of customer satisfaction, which is the "Net Promoter Score."  This score is derived from asking customers a key question which is, "On a scale of 0 - 10, how likely are you to recommend us (company name) to a friend or colleague."  Clients that answer 9 - 10 are raving fans while those answering 7 - 8 are passives while anything below that number is viewed as a detractor.  The net of those scores is seen as the "Net Promoter Score" and is often used by those acquiring businesses to gauge the customer service success of the business. 

In addition to great comradery, workshops, presentations and speakers, the IBBA Conference also hosted a Main Street Marketplace, where vendors and the industry’s top solution providers could provide information about the latest products and services.  

The Restaurant Brokers left the IBBA conference energized and excited by the business brokerage industry and connected to others in the field that are seeking to expand their knowledge, education and stay abreast of the latest trends. 

 

 

Topics: buying a restaurant

Top 10 Restaurants for Sale in April 2016

Posted by Robin Gagnon on May 3, 2016 3:00:16 PM

The Restaurant Brokers at We Sell Restaurants present our Top Ten most popular restaurants listed for sale in the month of April. The top ten are determined based on tallying our customer viewings, confidentiality signings, customer interactions and feedback. We are excited about the variety offered this month. There is something on this list that will accommodate just about every concept.

     

First place goes to this quick service franchise sandwich shop offering gluten-free subs in Forsyth County. The current sub concept offers ten different meats, four salad mixes, eight cheeses and sixteen spreads and sauces, a fully equipped kitchen and low rent. But what you won’t find are franchise or royalty fees! The current owner will transfer the recipes and assist in training and the transition. This unique sub shop is offered by Restaurant Broker Dominique Maddox.

Listing ID:4953  
Sub Sandwich Shop for Sale in Forsyth County. No Franchise Fees.
Lease: Expires November 2020
Monthly Rent: $1660
Inside Sq. Ft. 1360
Outside Sq. Ft.
Price:$59,999
City:Alpharetta

 In second place is a 1,200 square foot restaurant in Pompano Beach that would be perfect for Caribbean, Brazilian or Latin concepts offered by Restaurant Broker Ken Eisenband.  The fully equipped commercial kitchen has an equipment package that includes a char-broiler, six eye burner with stove, salamander, flat-top, convection oven, and fryer. The exhaust hood is ten feet long and the grease trap is in ground. All of the refrigeration is commercial grade and in excellent condition. The front of house has granite counter tops, espresso machine, conveyor toaster, and much more.

Listing ID:4930  
Restaurant for Sale in Broward County! Can Convert to Any Concept
Lease: Expires August 31, 2016 plus three one year options
Monthly Rent: $1224
Inside Sq. Ft. 1200
Outside Sq. Ft.
Price:$49,900
City:Pompano Beach

 The bronze medal winner in Austin, TX is brought to you by Restaurant Broker Dave Duce, the latest franchisee of We Sell Restaurants. This restaurant for sale includes a drive-thru and outdoor patio visible to the 30,000 cars that drive by each day. Buy this Restaurant for Sale and drive-thru and avoid the hassle, permitting, expense, and time of a new build-out. A new owner will enjoy a full commercial kitchen with hood system, refrigerators, prep tables, a freezer, fryer, grill and stove and much more.  There are also multiple booths, tables, chairs and outdoor furniture all in place and ready for a new owner. There is a bonus large storage shed out back for dry and canned goods storage.

Listing ID:4958  
Purchase this Restaurant for Sale with Drive-thru and Outdoor Patio in Austin, TX!
Lease: expires August 2020
Monthly Rent: $3675
Inside Sq. Ft. 1000
Outside Sq. Ft. 250
Price:$60,000
City:Austin

 Next is this Peruvian seafood grill in Boca Raton in a high traffic area with great visibility listed by Ken Eisenband. This restaurant is located on a major retail corridor and very close to Florida Atlantic University. The current menu consists of appetizers, soups, salads, seafood, steaks, chicken, dessert and a favorite of many, ceviche! The Grill for Sale has the 2COP beer and wine license in place. If you would like to continue with the current profitable concept all recipes will transfer with the sale or bring your own concept.    

Listing ID:4947  
Boca Raton Seafood Grill for Sale has Great Location and Visibility
Lease: Expires January 1, 2019
Monthly Rent: $5200
Inside Sq. Ft. 2400
Outside Sq. Ft. 100
Price:$67,900
City:Boca Raton

  In at number five is this Indian restaurant like no other brought to you by Dominique Maddox located in a standalone building with its own parking lot. This local favorite has been a cornerstone in Atlanta for eight years and is known for its excellent service and great staff.  Spices are separately prepared each day fresh for each individual dish. Specialties included: Chicken Tikka Masala, Chicken Makhani, Mugli Chicken, Lamb Kabab, Lamb Rogen Josh, Lamb Passanda, Shrimp Malaya Curry, Shrimp Tikka Masala, and Mixed Tandoori Kabab.    

Listing ID:4959  
Indian Restaurant for Sale in standalone building. Great delivery service area.
Lease: Expires in August 2016
Monthly Rent: $2700 including CAMS
Inside Sq. Ft. 1400
Outside Sq. Ft.
Price:$49,999
City:Atlanta

  This high traffic restaurant in a high income area has made the list at number 6. All equipment is less than one year old. This 2,500 square foot gem in Alpharetta, GA offered by Restaurant Broker Eric Gagnon is open and operating and awaiting your concept!

Listing ID:4918  
High traffic Restaurant for Sale in high income area ready for your concept!
Lease: 5 years
Monthly Rent: $4250.00
Inside Sq. Ft. 2500
Outside Sq. Ft.
Price:$49,000
City:Alpharetta

  Number 7 goes to this established and profitable bar in downtown Atlanta brought to you by Steve Weinbaum. Location, location, location! Located in the heart of the city, this bar for sale has become a vital part of the vibrant downtown community since it’s opening in 2003. It has a game room with room for 100 guests, main bar with seating for 80, a secondary bar area, and a 3000 square foot-400 person capacity special events floor where companies and sponsors host terrific events. Annual sales are over $600,000 and includes a six figure owner benefit.     

Listing ID:4944  
Profitable Bar for Sale Events Venue! Great Location in Downtown Atlanta
Lease: 1 Year plus 2 , 5 Year Options
Monthly Rent: $9490
Inside Sq. Ft. 7000
Outside Sq. Ft.
Price:$249,000
City:Atlanta

 Serving up 100% angus beef and the best chicken wings in town, it’s no surprise this wings and burger restaurant for sale in Cherokee County is in at number 8 on our list of top 10. Built in 2014, this popular spot was an instant success. Listed by Steve Weinbaum, all this place needs is a new owner to take this established eatery to the next level. Rent is only 11% of gross sales and a terrific $17.75 per square foot includes CAMS.

Listing ID:4880  
Profitable Wings and Burger Restaurant for Sale in Cherokee County
Lease: 1 year left with 3 year option
Monthly Rent: $3548
Inside Sq. Ft. 2400
Outside Sq. Ft.
Price:$119,000
City:Woodstock

  This well-known chicken wing franchise offered by Dominique Maddox has been in business since 1997 and has generated over $1.8 million in sales over the past 5 years will generate an owner/operator $150,000 a year. The current owners have established catering relationships with college athletic department, doctors, networking groups, wedding parties, birthday parties, and office buildings. The sellers of this Franchise for Sale will provide client contacts with the sale of this business. Located right at the doorstep to nationally recognized college in a town Forbes ranked #1 in Georgia Small Best Places for Business and Careers. 2015 demonstrated $1.8 Million in sales and $150,000 in Net Profit for this Franchise for Sale.     

Listing ID:4950  
Chicken Wing Franchise for Sale Grosses over $1.8 Million and Nets $150K
Lease: Expires July 2017
Monthly Rent: $12276.47
Inside Sq. Ft. 11800
Outside Sq. Ft.
Price:$524,999

 Last on the top 10 but certainly not least is this turnkey remodeled restaurant for lease in Gwinnett County. Formally an Italian concept that can easily be converted to any type of cuisine including a sports bar, burger concept, Italian restaurant, pizza restaurant, and many more. The front of house includes a beautifully designed build-out and a glass display kitchen. There is an open kitchen concept to entertain customers while dining. Separate area with a state-of-the-art Renato wood-fire cooking oven. Offered by Restaurant Broker Dominique Maddox, this 4,500 square foot restaurant that seats 100 guests with additional seating outside for 30 is a must see. 

Listing ID:4955  
Turnkey Remodeled Restaurant for Lease in Gwinnett County
Lease: Negotiable
Monthly Rent: $11000
Inside Sq. Ft. 4500
Outside Sq. Ft. 300
Price:$0

 The top ten restaurants for sale by the restaurant brokers is a dynamic list based on the inquiries from our many buyers!  While these are the most popular listings for the prior month, we have hundreds of restaurants for sale on our website, wesellrestaurants.com including bars for sales, franchises for sale and high income opportunities. Visit us online for more info or give us a call at 888 814 8226.

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Topics: restaurants for sale

Restaurant Brokers to speak at the IBBA Spring Conference in Orlando, Florida

Posted by Robin Gagnon on May 2, 2016 12:45:56 PM

Eric and Robin Gagnon will headline an IBBA workshop on Franchise Resales as Business Brokers gather in Orlando to "Fire Up Their Performance" 

Eric_and_Robin_Crop_April_2013_Headshot-1.pngRestaurant Brokers Eric and Robin Gagnon will be presenting at the International Business Brokers Association Spring 2016 Conference in Orlando Florida on May 5.  The two will be sharing their tips and trade secrets on franchise resales in a workshop titled, “Steps to Building a Lucrative Franchise Resale Practice."  

Their franchise resale workshop will teach other business brokers from around the globe and across the nation key skills needed to position a practice for resale success along with specific industry knowledge including what a business broker must know about the Franchise Disclosure Document or FDD. 

The 90 minute interactive session will be a combination of slideshow and audience participation and the description of the workshop states, “franchise resales are exploding as "zees" come of age and sell their businesses. Research shows that legacy units and new brands are turning over at a higher rate than ever before.” The workshop will answer the following questions:

  • How does a seasoned broker capitalize on this opportunity?
  • What are the key skills needed to position your practice for resale success?
  • How much knowledge do you need of the FDD?
  • What happens when you add the franchisor to the transaction along with the lender, landlord and attorneys?
  • Is there a secret formula to position your firm with franchisors as their reseller of choice?

Experienced franchise resale experts and veteran restaurant brokers Eric and Robin Gagnon are both franchisors of their brand, We Sell Restaurants as well as members of the International Franchise Association, the Southeast Franchise Forum and the Women's Franchise Network.  According to the conference materials, “these two have a grasp on franchise resale success." 

The IBBA or International Business Broker Association is the largest international non-profit association operating exclusively for people and firms engaged in business brokerage and mergers and acquisitions. This year's conference begins on Monday May 2 and concludes on Saturday, May 7.  Participants can expect to receive invaluable education, networking and comradery at the annual conference which is attended by brokers around the world.   

The workshop offered by the Restaurant Brokers is part of the options offered to enhance skills sets and assist Brokers in growing their business in line with the theme for this year's conference which is, "The Extra Degree - Fire Up Your Performance." 

Eric and Robin Gagnon are principles in the firm, We Sell Restaurants, a business brokerage firm specializing in the restaurant industry.  Both are frequent speakers and writers to the industry and along with hosting a syndicated radio show on the topic of buying and selling restaurants for a number of years. They co-authors of Appetite for Acquisition, published in 20112 and named Best of 2012 by Small Business Book Awards.  They can be found online at wesellrestaurants.com.

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Topics: selling a restaurant

Top 10 Restaurants for Sale in March 2016

Posted by Robin Gagnon on Apr 12, 2016 1:48:42 PM

 

Each month, the Restaurant Brokers at We Sell Restaurants are proud to present our Top Ten most popular Restaurant listings. This data is calculated based upon viewings, confidentiality signings and customer interactions our Brokers engage in every day. Each and every one of the following listings are unique and deserving of their ranking in this exceptional category.    

And the winner is… Restaurant Broker Eric Gagnon’s newly listed restaurant for sale in a thriving area of Fulton County. Located in a multi-level upscale retail center, this 2500 square foot space has just about everything including equipment that is all under one year old. The young and modern interior is adaptive to almost any cuisine concept so bring yours today!

Listing ID:4918  
High traffic Restaurant for Sale in high income area ready for your concept!
Lease: 5 years
Monthly Rent: $4250.00
Inside Sq. Ft. 2500
Outside Sq. Ft.
Price:$49,000
City:Alpharetta

In second place we have an almost 4,000 square foot bar and grill for sale. This pub has got it all - open floor plan, over 20 HD TV’s and live music that is enjoyed by loyal patrons on several nights. There has been almost $30,000 in renovations and the large commercial kitchen will accommodate catering or a menu expansion. Presented by Restaurant Broker Eric Gagnon, all this location needs is your favorite drink added to the happy hour menu.

Listing ID:4915    
Bar for Sale - Local Pub Ready for New Owner! It's a Steal!
Lease: Expires 6/30/2016
Monthly Rent: $5900
Inside Sq. Ft. 4000
Outside Sq. Ft.
Price:$49,900
City:Marietta

Third place goes to this easy to convert fast food restaurant in the sunshine state! The current menu features fresh hamburgers, salads, flatbreads and milkshakes but the possibilities are endless if you would like to add to the menu or change the concept. Offered by Restaurant Broker Ken Eisenband at a price of $49,000, this restaurant is a hot buy.

Listing ID:4893  
Fast Food Restaurant for Sale in Coral Springs Features Fresh Hamburgers
Lease: Expires May 1, 2017 plus two year option
Monthly Rent: $1498
Inside Sq. Ft. 600
Outside Sq. Ft. 75
Price:$49,000
City:Coral Springs

Serving up 100% certified angus beef gourmet burgers and hand-cut seasoned fries, there’s no wonder why this profitable wings and burger restaurant is high on the list at number 4. This newer establishment listed by Restaurant Broker Steve Weinbaum was an instant success generating close to $400,000 in sales in 2015. There is a license to serve beer and seating for 75 customers. 

Listing ID:4880  
Profitable Wings and Burger Restaurant for Sale in Cherokee County
Lease: 1 year left with 3 year option
Monthly Rent: $3548
Inside Sq. Ft. 2400
Outside Sq. Ft.
Price:$119,000
City:Woodstock
In at number five is this fingerlickin good chicken wing restaurant. Around for over 30 years, this well-established chicken wing franchise is a great opportunity. A 4,200 square foot family friendly facility is only the beginning. With sales of over a million dollars this restaurant offered by Restaurant Broker Dominique Maddox has all the elements for success already in place.
Listing ID:4873  
Buffalo's Cafe Franchise for Sale nets owner six figure return!
Lease: Expires May 2016
Monthly Rent: $8600
Inside Sq. Ft. 4200
Outside Sq. Ft.
Price:$450,000

Number 6 on the list is ideal for an owner looking for flexibility. Located in a busy shopping plaza close to a well-known mall, this fully equipped restaurant has seating for 74 guests that are seeking delicious breakfast and lunch. Presented by Restaurant Broker KenAllain this eatery has a little bit of everything. 
Listing ID:4866  
Restaurant for Sale! Great Breakfast and Lunch Location -- Limited Hours
Lease: expires 10/31/2022
Monthly Rent: $5600.00
Inside Sq. Ft. 2700
Outside Sq. Ft. 300sf
Price:$89,000
City:Sunrise

This quaint French restaurant in Broward County offered by Restaurant Broker Ken Eisenband is in at number 7. This bistro for sale is like no other. The extensive menu includes French favorites such as French Onion Soup and Vichyssoise to desserts such as Cherries Jubilee Flambé and Crème Brule and entrees featuring Beef, Chicken, Lamb, and Seafood. There is also a 2COP license in place so that beer and wine can be offered.

Listing ID:4856  
Bistro for Sale - Quaint French Restaurant in Broward County
Lease: Expires January 18, 2019
Monthly Rent: $3400
Inside Sq. Ft. 2200
Outside Sq. Ft. 100
Price:$125,000

 This 6000 square foot restaurant space with a bar and exterior patio for lease has earned its place on the top 10 at number 8. Diners will enjoy the upscale tile flooring, brick interior and gleaming wood bar. This space includes a 1500 gallon in-ground grease trap andAnsul fire suppression system. Presented by Restaurant Broker RobinGagnon, this space in Roswell offers a low investment with high earning potential.
Listing ID:4832  
Restaurant Space For Lease with great bar and patio in Roswell!
Lease: To be negotiated
Monthly Rent: $To be Negotiated
Inside Sq. Ft. 6000
Outside Sq. Ft.
Price:$0
City:Roswell
Number 9 on the list is a gem offering low rent and low operating costs. This restaurant for sale offered by KenEisenband has commercial grade refrigeration, granite counter tops, espresso machine, in- ground grease trap, char-broiler and much more. Beer and wine is offered to guests as this business has a 2COP licenses.
Listing ID:4930  
Restaurant for Sale in Broward County! Can Convert to Any Concept
Lease: Expires August 31, 2016 plus three one year options
Monthly Rent: $1224
Inside Sq. Ft. 1200
Outside Sq. Ft.
Price:$54,900
City:Pompano Beach
Who doesn’t like to eat fresh? In at number 10 is this rare turnkey Subway located in Florida. This store is ready for takeover and the current owner will offer his expertise to a buyer for training and transfer. All equipment, furniture and fixtures transfer in the sale. With great lease terms of just $3140 a month including water and trash, it’s no surprise this ready to go store listed by Restaurant Broker Eric Gagnon made the top 10.     
Listing ID:4901  
Franchise Subway for Sale in FL -- Turnkey Location is Open & Operating
Lease: Expires in 5 years with 5 year extension option
Monthly Rent: $3170
Inside Sq. Ft. 1800
Outside Sq. Ft.
Price:$149,000

 The top ten restaurants for sale by the restaurant brokers is a dynamic list based on the inquiries from our many buyers!  While these are the most popular listings for the prior month, we have hundreds of businesses for sale on our website, wesellrestaurants.com including bars for sales, franchises for sale and high income opportunities. 

 

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Topics: restaurants for sale

Seven Unique Legal Issues When Buying a Restaurant Franchise

Posted by Pete Dosik on Apr 4, 2016 11:10:37 AM

Buying an existing restaurant offers many advantages of building a new restaurant from the ground up. If that restaurant is a franchised, however, you are engaging in two separate but related transactions: buying an operating restaurant from the current owner, and buying franchise rights from a franchisor. If you are the buyer or seller in this situation, keep in mind these additional legal issues: 

  1. Franchisor’s Approval Process. The seller’s franchise agreement will prohibit selling the restaurant without the franchisor’s prior approval. Before the seller markets the business, he or she should contact the franchisor and obtain information about the franchisor’s transfer process. A good franchisor will have a clear, written process for you to follow in connection with the sale of the franchise. 

The seller should alert the franchisor when a letter of intent if signed. The buyer and seller will want to ensure that the franchisor will approve the buyer and the proposed purchase, as well find out any conditions the franchisor will impose for its approval. 

  1. Transfer Fee. The franchise agreement will typically require payment of a transfer fee to the franchisor. This can be $10,000 or more. The buyer and seller need to decide who pays the fee. 
  1. Brand Compliance; Remodeling. Generally, the buyer needs to know if the seller is in compliance with all of the franchisor’s brand requirements, and the parties need to allocate the costs of bringing the franchised business in compliance. 

More specifically, if the restaurant does not conform the franchisor’s current “brand image” for new restaurants, the franchisor will often require the seller or buyer to “reimage” the business to the current brand image. The buyer and seller need to understand what is required, the cost involved, and who will bear the cost. 

  1. Training. If the buyer is new to the franchised brand, the buyer will usually need to attend and complete the franchisor’s training program. This will affect the length of time between signing a purchase agreement and closing the sale. 
  1. New Franchise Agreement. The franchisor will often require the buyer to sign the then-current form of franchise agreement, rather than allow the buyer to take over the existing franchise agreement. The buyer needs to be aware of any material differences in the current form, including new or higher fees. Unless the franchisor is actively encouraging the sale, the buyer will usually not have any leverage to negotiate changes to the franchise agreement. 

If the seller had a special arrangement with the franchisor, such as lower royalty rates, then the losses of these special arrangements will affect the value of the business. 

  1. Franchise Expiration. The buyer needs to understand if they are taking over the franchise for the remainder of the existing term, or if the buyer is receiving a new 10-year term (or whatever term is standard for the franchise). 
  1. Lease Expiration. If a franchisee leases its restaurant location, there is often a mismatch between the expiration of the franchise agreement and the expiration of the lease term. The problem can be even worse when the franchisor requires the buyer to sign a new franchise agreement. If the new franchise agreement has a 10-year term but the business lease has only seven years left, the buyer will need to negotiate an amendment to the lease. 
  1. Marketing Funds. If the franchise system has a regional or local marketing fund or cooperative, the buyer and seller will need to address what will happen to any unspent funds. Some franchisors will take the funds for their own use. Other may allow the buyer to take over any unspent marketing funds.

Pete DosikAbout the Author

Pete Dosik is a partner in Shipe Dosik Law LLC. His practice focuses on franchise law and business law.

Topics: buying a restaurant

Restaurant Brokers Weigh in on Growth Boom in Higher-end Fast Food

Posted by Robin Gagnon on Mar 31, 2016 3:04:44 PM

 

Technomic_infographic.jpgHigher-end quick service is accelerating according to industry data just released by Technomic, a research and consulting firm servicing the food and foodservice industry. President Darren Tristano just noted in a press release that " "In full service, family style restaurants succeeded on affordable value, upscale casual dining chains appealed to more affluent consumers and many traditional casual dining chains appeared to be squeezed in the middle with weaker performance."

Technomic has been bullish on fast casual for some time.  Tristano was a guest on the restaurant broker’s radio show last year where he fielded questions along with Jonathan Maze (formerly of Franchise Times and now at Nation’s Restaurant News).  The duo weighed in on the phenomenon of fast food and fast casual versus full service restaurant locations. 

According to Restaurant Broker Robin Gagnon, the growth of this category was sparked during the last economic downturn for the country.  According to her, "Full service dining never really recovered from the recession of 2008.  We saw diners trading from full service to fast casual as they sought a lower price point during challenging economic times.  At the same time that full service diners traded 'up' to fast casual, fast food customers sought this same slice of the pie as an upgraded experience over traditional fast food." 

The research giant Technomic indicates that trend continues unabated in their latest press release.  Technomic President Darren Tristano is quoted as saying, "While the performance of the top 500 chains showed moderate improvement over the prior year, consumers clearly favored patronage of fast casual and fast-food restaurants."

 The growth by units were also compared by the data giant and they cited specific restaurant chains for strong growth including Blaze Pizza at a booming 205% unit growth rate, MOD at 182%, Burger Fi at 69% and Pieology at 67%.  In all, they show 2015 Limited Service Segment sales at $212 Billion dollars. 

Does that carry over to the restaurant for sale marketplace?  Restaurant Broker Eric Gagnon says emphatically, "Yes. The fastest segment of the market in restaurant sales right now is fast casual and fast food. Buyers are looking for ventures that are less complex and easier to execute with standardized recipes and lowered need for highly skilled chefs.  They also appreciate the return on investment that can be generated from easier control over food costs, labor costs and other variables that affect profitability."

Are restaurant sales growing?  Yes, says Technomic’ s press release that says, “The 500 largest U.S. restaurant chains posted combined sales of about $288 billion last year, a 4.9 percent increase from a year earlier. Sales in the so-called fast-casual segment jumped 11.4 percent, nearly double the rate of any other segment.”  We Sell Restaurants says those numbers are in line with the financial results they are seeing on restaurant for sale as they perform valuations and prepare businesses for SBA loan approval.  It’s also an improvement over 2014 where Technomic pegged overall sales growth at 3.4%.

What’s the bottom line on growth in the restaurant industry?  All data points toward continued growth in the fast casual and fast food segments at the expense of full service dining. 

If you would like to listen to the full broadcast of the Restaurant Broker’s interview with Technomic President Darren Tristano, it can be found online at this link or on our YouTube channel at this link. 

Technomic, a Winsight company, delivers a 360-degree view of the food industry. They can be found online at technomic.com.

Topics: buying a restaurant

Restaurant Broker Robin Gagnon to Judge GSU Business Plan Competition

Posted by Robin Gagnon on Mar 25, 2016 11:48:57 AM

Georgia State University and the J. Mack Robinson College of Business is hosting its annual Business Plan Competition on Friday April 1, 2016 at 6pm.  Restaurant Broker Robin Gagnon of We Sell Restaurants will serve as one of the event's judges for the evening.  The public is encourated to come watch the competition,  learn what makes a good Plan and gain insight in turning your ideas into a business!

GA_State.jpg

The evening will begin with networking over a "low country" bar-b-que dinner.  Following dinner, each of the finalists will make a 15 minute business plan presentation.  The first place winners will receive $20,000 plus a package of services.  Second place will receive $10,000 plus a package of services.  The top Non-Profit plan, in addition to being eligible for the main prizes, will receive a special award of $1,000.

The event is FREE - but you MUST register to attend and space is limited.  All students, faculty, alumni and community are welcome to Register at this link.  The ent will be held at GSU Centennial Hall, 100 Auburn Avenue on the Georgia State campus.  

The event is being organized by Professor Buddy Ray, the Associate Director of the Herman J. Russell, Sr. International Center for Entrepreneurship at Georgia State University.  

To learn more about the Business Plan Competition, see:  http://rec.robinson.gsu.edu/business-plan-competition/ 

Restaurant Broker Gagnon was invited to judge the competition after serving at a number of speaker at Entreprenuersip classes at Gerogia.  Robin Gagnon is an Entrepreneur, an expert in the restaurant industry and the franchise industry.  She is the Vice President and Chief Marketing Officer of We Sell Restaurants a business brokerage and franchisor founded by her husband Eric.  In that role she regularly works with and advises hospitality entrepreneurs.

Robin is one of handful of women in the industry working as a restaurant broker full time and has carved a principal role in the industry as a writer, speaker and advisor.  Her expert articles appear online and in print across the country.

Robin is an emeritus member of the Appalachian State University Business Advisory Council. She is also a founding member of the ASU Entrepreneurship Board. Robin is a licensed real estate salesperson in both Georgia and Florida and member of the Business Brokers of Florida and the International Franchise Association.  She has been named a National Industry Expert by Business Brokerage Press.

Prior to joining We Sell Restaurants, Robin served as Vice President of Strategic Marketing for a $4 billion dollar retailer and Director of Advertising and Director of Business Development for another Fortune 100 company.

Robin holds an undergraduate degree and an MBA from Appalachian State University where she graduated first in her class and was named "Outstanding MBA."