Advice for Buying a Restaurant and Selling a Restaurant

We Sell Restaurants Austin Texas Announces Multiple Sales

Posted by Robin Gagnon on Aug 25, 2016 3:45:36 PM

Dave Duce, Franchise Partner in Austin, Texas, Sells 416 Bar and Grille and Garden Spot Café and Catering.  

We Sell Restaurants, the franchise restaurant brokerage concept selling more restaurants than anyone else nationwide, announces the latest transactions in Austin, Texas. 416 Bar and Grille, located in the heart of one of Austin's premier restaurant areas, recently changed hands, as did Garden Spot Café and Catering.  Dave Duce, Certified Restaurant Broker and Franchise Partner for We Sell Restaurants in Austin, represented the seller in both transactions.   

416 Bar and Grille Austin Texas416 Bar and Grill went into contract and sold to the new owner, Michael Moyer, an Austin resident.  He is excited to take over a beautifully built-out location, and he and will soon be changing the concept. Michael plans to update the local flavor, recipes and customer service at this location with an all vegetarian menu and a new atmosphere. Restaurant Broker Dave Duce said of the sale, “It is always exciting to see someone with a real vision take over a concept and prepare to put their own spin on it. This was a great fit for both parties in a market where we are seeing strong restaurant sales.” 

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In a second restaurant sales transaction, Dave Duce sold Garden Spot Café to excited new owners Cindy and Raymond Choi. The 1,582 square foot café location will keep the same name and local vibe as it has for the last 30 years. The buyer and seller plan to closely coordinate on training and transition in order to retain the flavor and ambience of the business.  The seller, Rich Pogrund, is retiring after several successful decades in business, and he is so pleased that We Sell Restaurants could help him achieve such a milestone.

Eric Gagnon, President of We Sell Restaurants, said, “We are very excited to see the continued strong activity in the Austin, Texas market in particular. National tracking shows that business sales were only slightly ahead of last year at the national level.  Our firm is seeing restaurant sales activity that significantly outperforms last year in transaction counts and shorter days on market.  The Austin office is a strong performer in the restaurant-for-sale marketplace.” 

We Sell Restaurants, a franchise concept focused on helping the food service industry buy and sell restaurants through a unique branded and systemic approach, is now operating in 32 states, including those served by both the corporate headquarters and the franchisees, like Dave Duce in the Austin market.

About We Sell Restaurants:  You can find We Sell Restaurants online at wesellrestaurants.com, Facebook, YouTube and Twitter.  To learn more about franchising with We Sell Restaurants, visit www.wsrfranchise.com or call 888 814 8226.  We Sell Restaurants is the nation’s largest restaurant brokerage firm assisting those in the market to buy and sell restaurants. 

Topics: buying a restaurant, selling a restaurant

We Sell Restaurants Ft. Lauderdale Announces Multiple Sales

Posted by Robin Gagnon on Aug 25, 2016 8:30:00 AM

Ken Eisenband, Franchise Partner in Ft. Lauderdale Sells Mack’s Café and Strathmore Bagels and Deli.   

We Sell Restaurants, the franchise restaurant brokerage concept selling more restaurants than anyone else nationwide, announces the latest transactions in Broward County, Florida.    Mack’s Café, a casual concept in business for more than a decade, recently changed hands along with Strathmore Bagels and Deli.  Ken Eisenband, Certified Restaurant Broker and Franchise Partner for We Sell Restaurants in Ft. Lauderdale represented the seller in both transactions.    

Mack’s Café went into contract and sold to the new owner, Chris Frank, a Pompano resident.  He is excited to take over a thriving establishment and will be making changes to the concept along with re-branding the store as Topher’s Table. Chris plans to update the local flavor, recipes and customer service at this location along with the new branding. Restaurant Broker Ken Eisenband said of the sale, “It is always exciting to see someone take over a concept and prepare to put their own spin on the restaurant. This was a great fit for both parties in a market where we are seeing strong restaurants sales.”  

Bagels.jpgIn a second restaurant sales transaction, Ken Eisenband and Ken Allain of We Sell Restaurants cooperated on the sale of Strathmore Bagels and Deli in Sunrise Florida. The 2,700 square foot breakfast and lunch location is now under the ownership of Perla Acebey and Acebey, Inc. This 20-year old business is well established and the buyer and seller plan to closely coordinate on training and transition in order to retain the flavor and ambience of the business.  The seller, Tony Tutino, is retiring after several successful decades in business.

Eric Gagnon, President of We Sell Restaurants said, “We are very excited to see the continued strong activity in South Florida and the Fort Lauderdale market in particular. National tracking shows that business sales were only slightly ahead of last year at the national level while we are seeing restaurant sales significantly outperform last year in terms of transaction counts and days on market.  The Ft.  Lauderdale office is a strong performer in the restaurant for sale marketplace.” 

We Sell Restaurants, a franchise concept focused on helping the food service industry buy and sell restaurants through a unique branded and systemic approach, is now operating in 32 states including those served by the corporate headquarters and franchisees

About We Sell Restaurants:  You can find We Sell Restaurants online at wesellrestaurants.com, Facebook, YouTube and Twitter.  To learn more about franchising with We Sell Restaurants, visit www.wsrfranchise.com  or call 888 814 8226.  We Sell Restaurants is the nation’s largest restaurant brokerage firm assisting those in the market to buy and sell restaurants. 

Topics: selling a restaurant

Franchise Pizza Explodes with Expansion Units.  The Restaurant Brokers Report

Posted by Robin Gagnon on Aug 22, 2016 11:51:49 AM

 

The latest franchise expansion deals have been announced and the result is pizza, pizza, pizza.  The Restaurant Brokers are pulling just some of the latest development deals together in this report from multiple sources and the counts are stunning.  Pizza growth accounts for the lion's share of most development transactions tracked in the last thirty days.  That's hardly surprising since it's also turning in some of the best sales reports in the industry.  Fast casual is outpacing the total industry by a large margin and pizza is aPizza_Photo_Unlimited_Use.jpgt the top of the heap according to sales tracking by both Technomic and Black Box.  Here's some of the pizza deals we're hearing about and the counts are impressive. 

Kingdom Pies, LLC, has opened its second unit of the popular and expanding Pieology concept in Jacksonville, Florida.  They are also scheduled to open a Fayetteville, Arkansas store in the coming weeks. 

Donatos Pizza's opened its first Tennessee location in Nashville just six months ago and has now signed two development agreements totaling five restaurants. That's according to the Franchise Times deal tracker.  The magazine also reports that Steve and Spence Sheldon, have committed to opening two Donatos Pizzas on the northeast side of Nashville while Dr. O.T. and Angela Gordon signed on for three locations in Nashville, the first of which will be in Murfreesboro.  

The pizza passion continues with PizzaRev, a fast-casual pizza concept backed by Buffalo Wild Wings, signing a franchise agreement to bring the concept to Louisiana. Longtime restaurateurs and business partners, Cassidy King and Mark Florsheim, will lead the development of PizzaRev throughout northern Louisiana.

We warned you that pizza was moving fast and the development continues. Rocky Top Management group, is spearheading Toppers Pizza's expansion into Colorado and Wyoming. The partners have agreed to open 13 Toppers Pizzas, with plans for additional development to follow. The Fort Collins area in Colorado is the first targeted area.  Rocky Top Management is led by Todd Geatches and Clayton Hartman.  

Topper's also signed two additional multi-unit development franchise deals that will ultimately open up another 28 new locations for business. Six of those units will be in North Carolina and 22 will be located in Virginia and Maryland.  Toppers Pizza’s strong second quarter builds off the momentum it created from one of its most successful years to date. In 2015, 73 percent of Toppers’ stores broke sales records. That impressive growth led to the brand being named one of the top-five fastest-growing brands in the entire limited service pizza restaurant category of the 2016 Technomic Top 500 Restaurant Chain Report, one of QSR Magazine’s Top Franchise Deals and one of the top food and beverage franchises by the Franchise Business Review.

Firenza Pizza, a fast-casual chain that offers custom, made-to-order pizzas, has signed a development deal with Emily Wagner for five new stores in North Carolina over the next four years. Company plans call for having as many as 10 area locations over the next several years. Wagner has a degree in business and foodservice and was a stay-at-home mom for 20 years before rejoining the workforce to manage her family's oil, gas and mineral assets. Wagner decided to follow her passion for the food service industry and get back to her roots in the restaurant space with Firenza.

At some point, this trend towards pizza is going to reach saturation levels and these units will flip over to the restaurant brokers for sale but for now, the growth is nothing short of spectacular.  Even buffet pizza concepts are in on the growth.  

Fast casual buffet concept Cicis has also announced an acceleration in newly executed franchise development agreements that will result in more than 70 new restaurants being added to the brand’s nationwide network through the end of 2017 in 53 markets across the nation.  This on the heels of reporting the 13th consecutive quarter of same-store sales growth and the signing of 32 development agreements over the last two quarters. This represents more than 70 new restaurant commitments in 53 markets across the nation. In addition, eight new franchise partners have joined the Cicis family since Nov. 2015. New restaurant growth is projected to be particularly strong in Dallas/Fort Worth, Denver, Kansas City, Orlando and Central Texas.

Americans cannot seem to get enough pizza but the trend is bleeding over into fast casual Italian that goes beyond the pie.  

Fazoli’s Announces Record-Breaking Month with Nine Franchise Agreements to Open 22 New Restaurants Nationwide.   Fazoli’s, America’s largest fast casual Italian chain, announced a record-breaking month in July with the signing of nine multi-unit and single-unit franchise agreements to develop 22 new restaurants nationwide. As part of the agreements, Fazoli’s will develop new restaurants in cities, including Dothan, Alabama; Snellville, Georgia; Southern California; and Hazard, Kentucky; Sioux Falls, South Dakota; Memphis, Tennessee; McAllen, Texas; Chicago and Central Indiana. This announcement comes on the heels of significant growth for Fazoli’s, including 13 consecutive quarters of same-store sales growth – with franchisees boasting a 5.1 percent year-over-year same-store sales increase in July. In addition, Fazoli’s franchisees are experiencing nearly three times the industry average growth rate, with new franchised restaurants setting company-wide records.

The count of all this expansion?  In this single report we show Pieology adding 2, Donato’s adding 5, Pizza Rev (unknown but at least one). Toppers with 63, Firenza at 5, Cici’s at 70 and Fazoli’s at 22 NEW units.  That’s an unbelievable 168 new units announced in a single month with most to occur in 2017. 

Where will all this growth end?  There are analysts predicting that the pizza surge in sales is related to the election cycle.  They foresee more Americans seeking a "dine at home" alternative to eating out as pizza delivery surged last month with Papa John's.  That may just be an excuse for our overall love of comfort food which is now irretrievably linked to a great crust, sauce and lots of toppings.  

Continue to check our blog as the restaurant brokers report on the latest trends and happenings in the restaurant business or visit our restaurant for sale listings online at this link. 

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Topics: buying a restaurant

We Sell Restaurants Displays Booth at the Texas Bar & Nightclub Convention

Posted by Robin Gagnon on Aug 12, 2016 5:10:01 PM

We Sell Restaurants Franchise Partner Dave Duce showcased the Restaurant Brokerage brand at the Third Annual Texas Bar and Nightclub Convention in Austin Texas. 

The two-day event was open to those in the industry serving drinks as well as brands like We Sell Restaurants who service the thriving hospitality business.  This was the third year of the event hosted by the Texas Bar and Nightclub Alliance.  The Annual conference was held at the new Brazas Hall in Austin Texas.  Brazos Hall is a turn-of-the-century warehouse building at the corner of 4th and Brazos, now converted to Austin's premier event space. With its restored long-leaf pine floors, brick walls and wood rafters, Brazos Hall is a venue unlike any other in the heart of downtown. In addition to the 10,000 square feet in the Main Hall, Brazos Hall offers a 3,500 square foot Rooftop Deck with downtown views.

The We Sell Restaurants booth featured a good look at the nation's most sophisticated website for the purchase and sale of restaurants and bars, wesellrestaurants.com along with brochures and information about the firm's specialized services.  

In addition to display of product and services, the event featured speakers such as:  RNDC’s Corporate Mixologist Sly Cosmopoulos, and National Account Mixologist Rich Allison.  Held on August 7th and 8th, the event was a concentrated gathering of industry professionals looking for the freshest approach to the bar business including ways to increase margin, improve drink pricing and drive more sales. 

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Franchise Partner and Certified Restaurant Broker Dave Duce said of the event, "This was a great opportunity to connect with those in the hospitality industry.  Our booth was super busy as folks approached us to learn more about restaurants for sale and opportunities to buy for expansion or launch of their new concept."

The Texas Bar and Nightclub Alliance is a community of Texas bar and nightclub owners protecting its members by providing a platform for all relevant political and legal information.  According to their website, "Bars and nightclubs comprise a major portion of revenue and employment in the state of Texas making them an important sector in the state’s economy."

We Sell Restaurants is the nation's largest restaurant brokerage firm serving more than 32 states nationwide.  Their listings can be found online at www.wesellrestaurants.com  

 

Topics: selling a restaurant

We Sell Restaurants Has a Hot July With Restaurants Sold!

Posted by Robin Gagnon on Aug 11, 2016 5:02:59 PM

With Record Breaking Temperatures across the nation We Sell Restaurants is keeping the market hot with Restaurant sales in July.

Diner.jpgFrom Florida to Missouri the restaurant broker are closing deals during the month of July. A diner, bar, several cafes, and a bagel shop were among the mix.

Restaurant Broker Steve Weinbaum of We Sell Restaurants sold City Diner South in St. Louis the beginning of July.  The new owner, Maythan Ali is looking forward to owning a local favorite open for more than 20 years.  This diner for sale has been delivering consistently good food and service by the seller for two decades.  The business, conveniently located in a city center atmosphere on a main street is surrounded by retail, business, other restaurants, and both visitor and residential entertainment venues.  This authentic and classic diner is native to the local community and the buyer intends to keep that local flavor in place in the sale.

Two restaurants for sale in Georgia found new owners with the efforts of Restaurant Brokers Dominique Maddox and Robin Gagnon in two uniquely different deals. Certified Restaurant Broker Robin Gagnon closed on the Bottom of the Cup sports bar in Flowery Branch.  The new owner, Thomas Sachs has a great background and experience in the restaurant industry as a regional leader for Brinker's Group (Chili's).  He will be implementing a new menu and a number of changes at the location.  Dominique Maddox was the listing and selling broker for Good Grub Subs in Alpharetta Georgia. This Sandwich Shop has capitalized on a solid tradition and an excellent reputation for great food that is fresh, fast and affordable. The location has a well-developed customer base in South Forsyth and North Fulton County, and is known for its hot subs, cold subs, and Gluten-free subs. The new owners of this Sandwich Shop is excited to offer catering services of platters, salad platters, and box lunches as well as their everyday menu.

Fort Lauderdale We Sell RestaurantsFranchise Partner Ken Eisenband has been keeping Florida market hot with two local sales! Ken Eisenband and his agent Ken Allain sold a local café and bagel shop. Mack's Cafe located in Pompano Beach, Forida has a menu that consists of breakfast including eggs, omelets, pancakes, French toast and sides of home fries, bacon and sausage. Lunch consists of burgers, salads, soups and sandwiches. The new owner may keep this same concept of change it up based on the locals needs. The Strathmore Bagels and Deli is also under new ownership with the help of the Fort Lauderdale franchisee of We Sell Restaurants.  This 20-year old buisness is well established and there will be training and transition between the buyer and seller to keep the flavor of the business intact.  This well-established location and local following was a huge draw to the new owner who is looking forward to this new venture.

If you are in the market to buy or sell a restaurant, visit the nation's most productive restaurant brokerage firm online at wesellrestaurants.com.

 

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Topics: selling a restaurant

Latest Restaurant Franchise Deals Announced

Posted by Robin Gagnon on Aug 9, 2016 12:50:24 PM

Franchise.jpgThe restaurant brokers have scoured the headlines for the newest franchise restaurant deals signed coast to coast.  Here's what we found in the industry press.

BBQ continues to be a hit.  Tulsa-based Billy Sims BBQ has added another unit in Roseville, Michigan.  Longtime franchisee Jim Turner is developing the store.   Jim owns two other Billy Sims BBQ restaurants in the Detroit area. In addition, franchisee Steve Allen opened his sixth restaurant, this time in Chickasha, Oklahoma. His other BBQ units are in Duncan, Egin, Altus and two in Lawton, Oklahoma.  

Pizza is also on the map for the month.  Kono Pizza and Kono To-Go has signed several deals.  Here's the rundown courtesy of Franchise Times. Sadashiva Pai, who signed on for 10 Kono Pizza units in the Dallas area, has one unit opened, with three-to-five slated to open in the next two years; Ryan Kelly is in play for 10  Kono Pizza units in the Dallas area, with first unit opened in a Wal-Mart.  Robert Resendez, has five Kono Pizza units committed for Houston while Ben Hardie has committed to similar count in the LA and San Diego, California, area.  The east coast is not left out of the mix.  Jalal Roy is developing 10 units in the Atlanta metro while Tony Murphy agreed to open three units in Washington, D.C., his first in August and second scheduled to open on Black Friday (and looking for a third site); James Saliba is on the hook for three units in Florida; Gino and Eric Ciancaglini have two units in Philadelphia already open with three to go. 

Pizza Inn, the international pizza restaurant with a local hometown feel, opened its newest location Wednesday, August 3 in Pearl, Mississippi.  The new Pizza Inn buffet is located at 190 Riverwind Drive and owned by Kevin Khambhati.

PizzaRev®, a fast-casual pizza concept backed by Buffalo Wild Wings, announced today that a franchise agreement was signed to bring Craft Your Own™ pizza to Northern Louisiana. The development of PizzaRev throughout Northern Louisiana is led by longtime restaurateurs and business partners, Cassidy King and Mark Florsheim.  There are more than 200 PizzaRev locations in various stages of development across the country. The brand currently operates 42 corporate and franchise locations throughout California, Colorado, Minnesota, Nevada, New York, Ohio, South Dakota, Tennessee, Texas, Utah and Mexico.

Toppers Pizza has signed former Domino’s Pizza franchisee and Papa John’s exec Mike McLaughlin and his wife Helen, to develop 22 franchise units between 2017 and 2022.  The will be building throughout Northern Virginia and Maryland, with future plans for expansion in Baltimore and Washington, D.C. The first units to open will be located in the Arlington, Fairfax, Falls Church, Alexandria and Annandale areas of Virginia.

In the Northeast, lobster rolls are a staple; even McDonald's has a lobster roll on the menu ($8.99 last week in Maine, and not half bad). Mason's Famous Lobster Rolls, which was started in 2014 in Annapolis, Maryland, is hoping the nation's love of lobster will grow outside the Northeast. As they look for franchisees, they reported to a business publication that they already have sourced lobsters to travel wherever needed.

 Twelve-year-old Ziggi's Coffee, with eight locations open in northern Colorado, plans to start offering franchises of both its coffeehouse and double-sided drive-thru units.

Looking around the globe, the United Arab Emirates is in full on development mode for Italian.  Deals are signed for both Bella Italia and Russo's Coal-Fired Italian Kitchen.  Russo's Restaurants' UAE franchisee group, Prime Hospitality, which already owns and operates six locations in the UAE, will open Russo's Coal-Fired Italian Kitchen later this year at The Point in Dubai Marina. Prime has also finalized plans to add eight more locations in the UAE during the next three years. In addition, Russo's has finalized an agreement to franchise its brands in Kuwait. The Kuwaiti franchise partners will be opening four units, three New York Pizzerias and one Coal-Fired Italian Kitchen

UK restaurant operator Casual Dining Group, has signed a franchise agreement with Fawaz Alhokair Group to operate an initial 18 Bella Italia restaurants in Saudi Arabia. Fawaz Alhokair, which licenses and operates both restaurants and retail brands, is opening new stores at a rate of an outlet-a-day in the region, according to a release.

Captain D’s LLC, the leading fast casual seafood restaurant, has announed plans to expand its presence in Louisiana. Their goal is to open 17 restaurants by the end of 2016. Currently Captain D's has 512 restaurants in 21 states ans is the fast-casual seafood leader and number one seafood franchise in America ranked by average unit volume.

Bojangles’ has signed a new multi-unit development agreement with Angle, Inc. of Gautier, Mississippi. Over the next several years, the new development agreement is anticipated to result in multiple new Bojangles’ restaurant locations in southern Alabama and southeast Mississippi.  Expanding its footprint through greater scale in states outside of its core North Carolina and South Carolina markets is a key strategic initiative for Bojangles’. There are currently 32 Bojangles’ restaurants serving many thousands of loyal fans in Alabama.

Chicken Salad Chick, the nation’s only southern inspired, fast casual chicken salad restaurant concept is expanding in Florida with its first location in Port Orange. The Port Orange restaurant marks the 13th Chicken Salad Chick location in Florida.The Chicken Salad Chick concept, born in Auburn, Alabama has 58 restaurants across the Southeast.

Fazoli’s, America’s largest fast casual Italian chain, announced a record-breaking month in July with the signing of nine multi-unit and single-unit franchise agreements to develop 22 new restaurants nationwide. As part of the agreements, Fazoli’s will develop new restaurants in cities, including Dothan, Alabama; Snellville, Georgia; Southern California; and Hazard, Kentucky; Sioux Falls, South Dakota; Memphis, Tennessee; McAllen, Texas; Chicago and Central Indiana.

Burger 21®, an award-winning, “beyond the better burger” fast casual franchise has announced the signing of a multi-unit franchise agreement to develop two restaurants in the Atlanta area to further develop the brand’s presence. Father-and-son franchisee team Dwight Pearson and Jamion Ridon plan to open two restaurants in Midtown and Sandy Springs over the next two years. Burger 21 currently has 24 open restaurants, including four restaurants across Atlanta, and approximately 20 franchised locations in development nationwide.

That is a lot of development on the horizon for new franchise restaurants.  There is strong development from southern chains and pizza appears to have a lot of momentum for new franchise deals.  Stay tuned for more updates on the latest franchise restaurant development deals. 

Looking for a franchise to buy?  Check out our franchises for sale at this link.  

Topics: buying a restaurant

Who’s buying a Restaurant?  The Demographics of Selling Restaurants Part 1

Posted by Robin Gagnon on Aug 8, 2016 8:30:00 AM

A white paper published by BizBuySell recently covered the demographics of those buying a business.  It was fascinating reading with some of their key findings (quoted directly from page 2 of the report below).

  • businessmen-152572_1280.png Business ownership runs in families: 55 percent of sellers have a parent or grandparent that owned a small business.
  • 49 percent of sellers plan to exit their small businesses in the next five years, but only 29 percent are currently prepared for the sale process.
  • Younger buyers are more ethnically diverse than their elders: 49 percent of 18 to 29 year-old buyers identify as a minority, compared to 19 percent of buyers in their 50s or older.
  • The number one motivation for purchasing a small business is the chance to be your own boss, cited by 63 percent of all buyers.
  • 12 percent of sellers and almost 10 percent of buyers are veterans.

As restaurant brokers, we wanted to analyze their findings and compare them to our database.  Here’s what we found.

Business ownership runs in Families.  We find that in addition to the BizBuySell finding that 55 percent of sellers have a parent or grandparent that owned a small business; many multi-generational groups are buying together.  At this time, we have deals in contract for a father and son team, an uncle and nephew team, an entire family group (Aunt, Uncle, Cousin, and Son) and many husband and wife groups.  Their white paper study states that 55% of sellers have a parent or grandchild that owned a small business.  We find that nearly 50% of our buyers are coming together with family members to buy a restaurant.

Sellers are Unprepared.   The BizBuySell white paper on demographics says that 49 percent of sellers plan to exit their small businesses in the next five years, but only 29 percent are currently prepared for the sale process.  As restaurant brokers dealing with countless small business owners, we are dealing with those who want to sell now, today.  For the majority (more than 50%), they are not prepared for the process.  What does preparation for selling mean?  For the most part, it means a strong set of financials that can be verified, backup documentation requested by the bank for lending and all the money is “on the books”.

Younger buyers are more ethnically diverse than their elders. The White paper on the demographics of business buyers found that 49% of those 18-29 identify as a minority.  Is there a shift to buy businesses by Millennials who are in a minority?  As restaurant brokers, we actually believe this trend is more aligned with the fact that more Millennials are unable to find a job in the market and are in fact, buying a job than taking the traditional corporate route to work. Many second generation Americans still see such pride of ownership in running a business and have experienced the positive earnings results that they are taking this route rather than waiting out an economy that frankly, may never have a job for them.  It may be that Millennials that identify as minorities are simply faster to move from the corporate lane to ownership.

Number one reason to buy – Be Your Own Boss!  Okay, there’s not a lot we can say about this finding.  It was the reason cited by 63% of those surveyed for the white paper and for the restaurant brokers, it is either the number one or number two reason to buy for the majority of our clients.  This is one finding we totally agree with.

12 percent of sellers and almost 10 percent of buyers are Veterans. What’s interesting about this finding for the Restaurant Brokers is that our numbers are probably as high as 20% for both Buyers and Sellers.  We most often learn this about the buyers as we are getting to know them and helping them find a restaurant to buy but visiting a restaurant for sale gives you a good sense of who’s been through basic training and understands process and methodology.  They almost always run a tighter ship, have more buttoned up financials and a strong pulse on their business.

These are just the key findings of this report but there are many more findings we will describe and compare over our next few blog articles as we dive into who’s buying and selling a restaurant today.

Topics: buying a restaurant

Restaurant Brokers Attend Franchise Convention

Posted by Robin Gagnon on Jul 27, 2016 3:12:15 PM

Huddle House brought their best to their annual conference and the restaurant brokers were there! Attendance was at an all-time high of 450 people from 66 ownership groups, 182 restaurants across 23 states, and 71 vendor partners. This represents an increase over last year's convention results.  The Restaurant Brokers from We Sell Restaurants including Robin Gagnon, Eric Gagnon, and Steve Weinbaum were center stage for the event with a busy booth.

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Huddle House recapped their 2015 results and 2016 goals.  The company is now at 370 units with 21 new stores opened in the last year, a dramatic increase from just 13 restaurants opened the prior year.  Same store sales growth was also on the rise.  The Huddle House restaurant franchise group outperformed the national averages with sales increase of 3.6% over the prior year and a daily sales increase of 5%.  This is the second consecutive year of same store sales growth and a great trend for this franchise restaurant brand. 

The company is working to remodel and upgrade the Huddle House locations and 42% are now fully remodeled to the newest look.  The customer is responding well to the new look of Huddle House since the new EVO locations are showing an average volume of $774,000 versus the stores that are not remodeled which are at  at $614,000.  The top 80% of EVO stores are at $850,000 per year in sales.  With 42% remodeled now, the group is encouraging everyone to make the change with a goal to hit 50% by the end of 2017 and 71% remodel by the end of 2019.  The Huddle House franchise is even rolling out incentives to make this happen.  The Huddle House franchise is offering an incentive to remodel allowing early adopters of the program to receive a $20,000 cash offset along with$5000 in local store marketing to announce the new store experience.

While sales were on the rise, profit also experienced an increase in 2015 with store sales profits rising an average of $9000 per store.  Goals for the New Year operationally include:

  • A New back office system
  • Back to Basics Training
  • Loyalty program
  • To Go program
  • Mobile ordering

In addition to all this good news and focus, Huddle House has also announced a franchise incentive program for its franchisees that are willing to expand.  They are offering an incentive package to existing franchisees valued at approximately $80,000.  Any franchisee that signs a new franchise agreement and opens a store before the end of 2017 receives the waiver of a franchise fee and a $20,000 cash incentive for the build out.

That's great news for franchisees of the Huddle House brand.  The franchisees that the restaurant brokers spoke with were enthusiastic and excited about the direction of Huddle House.  It was a fun convention and great family time for a brand that connects deeply with families as a community restaurant. 

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Topics: buying a restaurant, selling a restaurant

We Sell Restaurants Compares Activity to BizBuySell First Half of 2016

Posted by Robin Gagnon on Jul 26, 2016 5:32:22 PM

According to the most recent BizBuySell report business sold in 2016 are up slightly over 2015 results.  They also state that the average time on the market is now around six months.  How does that relate to the Restaurant Brokers at We Sell Restaurants?  Our data shows transactions for the same time period are up 30.56% for the same time frame in terms of unit count.  Average time on the market for BizBuySell brokers averaged over six months.  The average for restaurants for sale listed by We Sell Restaurants the time frame between listing and selling was under 160 days compared to the six month time frame listed in the national study.  
We Sell Restaurants, the nation's largest restaurant broker firm compares their results to BizBuySell.com, the Internet's largest business-for-sale marketplace.  BizBuySell is reporting that "the total number of small businesses changing hands in the first half of 2016 represents an increase from not only last year, but from the record-setting 2014 as well."  The statistics for BizBuySell are gathered from business-for-sale transactions reported by participating business brokers nationwide.
 
Twenty-one percent of the listings cited in the BizBuySell report were restaurants with 792 restaurants of the total businesses sold.  From BizBuySell, a total of 1,935 closed transactions were reported in the second quarter of 2016, bringing the year-to-date total to 3,775, a slight improvement from the 3,743 reported in the first half of 2015. If this pace holds up, 2016 is also on track to surpass 2014, when BizBuySell reported a record 3,755 transactions in the first half of that year.  Their graph shown below from the report shows the transactions by quarter. 

2016 Q2 Closed Small Business Transactions

Key financials of the 1590 restaurants n the BizBuySell report for the year included a median sales price of $180,000 versus a median asking price of $220,000.  This means that sellers achieved 88% of their sales price.  That is slightly lower than the restaurant brokers at We Sell Restaurants for the time period where selling prices were closer to 90% on average.  The median revenue of the restaurants in the BizBuySell report was $500,000 and median cash flow was $92,000.  The bars and taverns in the BizBuySell report fared better in terms of median revenue at $534,000.  

Bob House, President of BizBuySell.com and BizQuest.com said of the listing pipeline, "Despite the many deals already completed over the past few years, there still appears to be a strong supply of listings, driven by retiring Baby Boomers, and at the same time, qualified buyers with access to capital."  Eric Gagnon of We Sell Restaurants agrees saying, "The uptick we have seen in listings can definitely be attributed to baby boomers as well as more churn within the franchise resale market as buyers divest some brands or units in favor of other franchise locations. 

Balance of 2016 Remains Good Time To Buy or Sell, Election Among Key Issues To Watch

According to the BizBuySell report, mulitples are holding strong.  Restaurant sales reported by BizBuySell showed cash flow multiples on average of 2.01 for Restaurants and 2.12 for Bars and Taverns.  They show the average cash flow multiple for all businesses is 2.26, just slightly down from 2.22 in 2015 and they say that "minimal year-over-year variations point to a stable market."  For the restaurant brokers we are actually seeing higher multiple particularly for franchise resale transactions.  It is customary to see asking pricing at approximately three times seller's discretionary cash flow and the selling price coming in very close to that number.  

The BizBuySell report raises the issue of the Presidential election as an item on small business owners' minds and we agree.  Despite your party affiliation, the election results may keep some out of the market with fear of the unknown dominating actions. 

The BizBuySell report did not comment on is the availability of lending for business sales, perhaps the greatest stimulus to deals.  The restaurant brokers are seeing a very strong lending market which is contributing to many more deals being funded and closed on in short periods of time.  Robin Gagnon of We Sell Restaurants says, "Getting funding is key to buying a restaurant.  Our SBA lenders are strong and we get results within 72 hours of submission and close deals in weeks.  That is clearly affecting the pipeline of sales and ready capital is helping many buyers leverage their investment.  This is true for both franchise and independent transactions." 

 

2016 Q2 Small Business Sales by Sector

Source: bizbuysell.com

Topics: buying a restaurant

We Sell Restaurants Austin Announces the Sale of Pecan Street Station

Posted by Robin Gagnon on Jul 20, 2016 7:30:00 AM

Dave Duce, Franchise Partner in Austin Texas Brokers Transaction for Family Restaurant Operating in the Local Community for the Past Two Decades...  

Pecan_Street_Station.jpegWe Sell Restaurants, the franchise restaurant brokerage concept selling more restaurants than anyone else nationwide, announces their latest transaction in Travis County, Texas.  Pecan Street Station, a casual eatery owned and operated by James and Robin Akin recently changed hands.  Dave Duce, Certified Restaurant Broker and Franchise Partner for We Sell Restaurants in Austin represented the buyer and seller in the transaction.   

Pecan Street Station went into contract in just over a month to buyers Paul and Rose Prestridge, who are excited to take over a thriving establishment.  They plan to keep the local flavor, recipes and customer service this location is known for.  Broker Dave Duce said of the sale, “In a few short months, we’ve been able to establish a strong group of restaurants for sale.  It is clear that buyers outnumber sellers here in Austin and transactions are moving quickly. This particular restaurant was listed for just 36 days before going into contract. This was a successful transaction where both the buyers and sellers felt very good about the transfer.” 

The sellers, James and Robin Akin, plan to retire after several successful decades in business.  They are working along with the buyer to transfer their knowledge and recipes as the restaurant changes hands. New owners Paul and Rose Prestridge were minority partners in a franchise fast food concept for several years prior to purchasing Pecan Street Station. They are looking forward to bringing that experience to their latest venture as operators of this casual eatery.  

This is Duce’s second sale in as many months.  He also recently closed on Cream Whiskers, a unique and popular puff-pastry bakery located two blocks from the University of Texas at Austin.  Eric Gagnon, President of We Sell Restaurants said, “We are very excited to see the very short time between listing and sales in the Austin market.  Dave is a great example of the We Sell Restaurant process that allows our brokers to sell more restaurants than anyone else nationwide.” 

We Sell Restaurants, a franchise concept focused on helping the food service industry buy and sell restaurants through a unique branded and systemic approach, is now operating in 32 states including those served by the corporate headquarters and franchisees

About We Sell Restaurants:  You can find We Sell Restaurants online at wesellrestaurants.com, Facebook, YouTube and Twitter.  To learn more about franchising with We Sell Restaurants, visit www.wsrfranchise.com  or call 888 814 8226.  We Sell Restaurants is the nation’s largest restaurant brokerage firm assisting those in the market to buy and sell restaurants. 

 

Topics: selling a restaurant