Advice for Buying a Restaurant and Selling a Restaurant

The International Franchise Association or IFA in conjunction with Morning Consult has released a dynamite new survey about the high level optimism in franchising.  The restaurant brokers have been seeing general research about small business optimism hitting eight year highs, but this is the first survey we’ve seen that focuses on the franchise community.

The survey was conducted online between May 22 – June 5, 2017, among a sample of self-reported franchise owners and potential franchise buyers/investors. Twenty-one percent of their sample was comprised of current franchise owners.  The results are powerful. 

The survey asked how likely prospective buyers are to invest in a business.  Three in 10 (31%) are more likely to buy or invest in a business than six months ago while 4 in 10 (36%) are as likely as before.  Combined, that means 62% of prospective buyers are as likely as or even more likely to buy business than six months ago. Since roughly 30% of all the franchise units are in the restaurant segment, that's good news for those of us selling restaurants today.  Only two in 10 (19%) are less likely.

Those surveyed believe the economy is improving.  Fully 38% of franchise owners and potential buyers say the economy is improving while half that number (19%) believe it is not. Of the ones that own franchises today, the result is even more bullish.  52% of those who own franchises today, says the economy is improving.  Does that translate into actual spending to buy a restaurant franchise?  The We Sell Restaurants results for the first half of the year say yes.  We are seeing overall improvements in both unit counts and size of restaurants sold.

What about millennials?  The survey found younger franchise owners and potential buyers/investors show high levels of optimism. Almost half (45 percent) of 18-34 year olds report being more optimistic, while only 15 percent of this age cohort is less optimistic.

While they may be ready to buy, they also had a few things on their mind that the government could do to help.  A series of policy questions were posed for feedback.  The data indicates on a policy level that two items are on the minds of franchise owners – taxes and regulation.

Two survey items reinforce the need to a reduction in regulation.  78% said we could improve the economy and the business prospects of the respondent by “Reducing red tape to make it easier to start a business.”  75 percent of franchise owners and potential buyers believe reducing regulations on small businesses would improve the economy.

72 percent believe lowering taxes would improve the economy. 

That’s in line with what the restaurant brokers are hearing from the industry.  Eric Gagnon, President of We Sell Restaurants said, “We are seeing growth in the first half of the year and optimism by buyers, lenders and sellers.  Despite some soft restaurant sales data at the unit level, the fundamentals of owning a business have never been better and our buyer inquiries reflect that, in particular for franchise brands.”

 We Sell Restaurants is a restaurant brokerage franchise and the largest firm specialized in selling restaurants.  All listings can be found online. 

Dominique recently had a conversation with his wife telling her how mentally tired he was after a tough day as a Certified Restaurant Broker when she returned from work. His wife said, “You sit in front of your computer all day, what did you actually do today?" Here's his log of his actions for the day he was kind enough to share.  

5:00 am – Wake up and put on the 1^st pot of coffee. Review my business to-do list for the day and add items

5:30 am-  Go to the gym and go beast mode to get ready for the day

7:30 am – On the road to take pictures of a restaurant I recently listed for sale. I must arrive before the back of the house staff arrives so they will not be suspicious.

8:45 am- After battling through the high-dense Atlanta traffic, I make it to my destination 42 miles from my home.

9:15 am- Pictures are finished and I must conduct a conference call between a buyer and seller to discuss expenses on last year’s profit and loss statement while sitting in my car. 

9:40 am-  While still sitting in my car, I get a call from a seller he is not happy. The seller does not want to sign the 4506-T form which allows the bank to request the sellers tax returns for a buyer to get an SBA Loan based on the business financials. The seller discloses to me they need to amend their tax returns because they filed inaccurate numbers.

9:50 am – Receive call from leasing representative the landlord will not offer my client more Tenant Improvement Money to move forward with the lease. The landlord will only offer 2 free months of rent instead of 3 months.

11:00 am – Arrive back at home office to respond back to missed emails and calls.

11:25 am – Review my HOT Report and touch all my pending deals with updates or reminders

11:45 am – Receive call from a financially qualified candidate. Buyer needs help understanding the price valuation of the restaurant. Buyer does not understand the definition of add-backs for a price valuation.

12:00 pm- Receive email from buyer that request to see a lease space I’m advertising. I call the buyer and they don’t want to show proof of funds, business plan, or menu. They just want to see the location first and then decide if they want to move forward. Let them know landlord wants to see those documents to qualify them as a tenant before showing tghe space.

12:45 pm- Receive an email from a buyer in South Carolina, they want to make an offer on a Franchise Restaurant I have listed in South Carolina. The buyer requests a copy of our Asset Purchase Agreement. I draft the Agreement and send for review.

1:30 pm – Follow up with Dickey’s BBQ Pit to confirm buyer’s Discovery Day date to attend at Dickey’s Headquarters.

2:00 pm – Conference call with Wich Wich, buyer, seller, and Area Representative to discuss transfer checklist

2:30 pm-  Schedule a meeting between buyer and seller at restaurant for Friday

2:45pm- Follow up with Firehouse Subs Area Representative to discuss training day for approved candidate.

3:00 pm – Review an 80-page lease to find out the lease expiration, option renewals, security deposit, CAM charges, and type of restaurants allowed in the shopping center

3:30pm- Follow up with closing attorney on debits and credits for Closing Settlement Statement.

3:45pm- Receive a referral for a Firehouse Subs seller who wants to sell from my current client

4:00pm – Assist buyer with working on bank projections for loan approval. Review business plan and give feedback for improvement.

4:45pm- Follow up with listing leads and search for more leads

5:30pm- Work on Science Project with my 5^th grade daughter Amaya

7:00 pm- Draft emails to send out in the morning

7:30 pm- My wife arrives at home!

7:45 pm- Receive text message from seller, asking for an update on buyer activity for their listing.

Dominique writes, "To be an excellent Restaurant Broker you must multi-task and be the quarterback of the deal. Nobody wants to get the deal done more than the Broker.  It can be the difference between feeding your family ground beef or filet mignon.  Yes, most days I’m drained from my daily activities and I’m constantly thinking about items that need to be complete on each deal at night. The satisfaction I get from this career is knowing I help people realize the American Dream of Business Ownership. Tomorrow I will get up and do it all again."

Domminique Maddox is a licensed Georgia real estate agent and graduate of Morehouse College which he attended on a football scholarship.  He brings that same competitive spirit and energy to the field of restaurant brokerage. Dominique received a Bachelor of Business Administration in Business Management from Morehouse College.  He has worked in mortgage financing, real estate, business to business sales, and Restaurant Brokerage Sales.

Dominique was named the recipient of the Georgia Association of Business Broker "Rookie of the Year" award from the organization for 2011.Dominique was also elected as a Director to the Georgia Association of Business Brokers for 2012. Dominique has undergone extensive training for restaurant brokerage and has earned the designation as a Certified Restaurant Broker. View his listings online at this link.

Restaurant Trends – how do they apply to the real world scenario of your restaurant down the street? 

Trends can be a game changer for a restaurant operator.   Think about the millennial trend which turned to a tidal wave with some writers claiming this one demographic calls all the shots for restaurant market share.  If you missed an appeal to that audience, some will declare your restaurant dead in the water. On the other hand, you can’t apply every single trend.  If you take the latest Restaurant Trends Reports and start applying everything, in the words of one restaurant broker, “You're probably gonna have a giant mess and very quickly so."

Trend reports are released by marketing companies and by the National Restaurant Association every year.  You can get culinary trends, beverage trends, technology trends and drive it down to specific items like coffee trends.  How do you use it and what’s the right way to apply the knowledge?  Here are the restaurant broker’s thoughts on trend spotting and trend hopping.

Don’t live in the Muddled Middle Ground

There's a phrase in the marketing world called the “muddled middle ground” and that's where you never ever want to be. Why? Because your client can't find you there. If you try to be a little bit of everything, you end up being a whole lot of nothing. That’s the danger of letting a trend eclipse your basic premise.  If you are a vegan concept, it makes absolutely no sense to go with pates and a lot of meat spreads. Even though that’s the hottest trend in menus, it doesn't make any sense for you.

Make sure the Trend Makes Sense for Your Concept

On the other hand, trends can move you in the right direction.  If you're a veggie concept and the trend for vegetables says beets are out and cauliflower is emerging, then make sure high points on your menu no longer speak to beets as the main star when they begin trending down.  Instead, start speaking to cauliflower in your dish creation and then push the envelope into radish.

A good restaurant operator should take the latest trend reports available online and really study it to see where it should impact their concept.  As restaurant brokers, we study all the trends in the industry all the time do we can advise clients on the latest concepts.

Trend Spot but Don’t Trend Hop at the Expense of your Legacy

How do you stay on trend without giving up your identity?  If you've been in business fifty years, stay with your core approach and adapt to stay relevant. That adaptation may be the adoption of technology while keeping your strengths.  If you’re built on the best wings in town, there’s no reason to jack with that recipe but putting Ipads on the table with “build your own sauce” opportunities is a changeup that will appeal to a new and old customer. 

You Don’t Have to Keep Following the New Best Thing

The opposite of the “muddle middle ground” is a radical approach that keeps your customer guessing.  If you change the menu as often as you change your sheets, it can be difficult to build loyalty.  Cuisines come and go.  Not too long ago it was Asian Fusion which gave way to New French and that morphed to Spanish influences, small plates and Tapas.  It’s here today, gone tomorrow. 

There’s an issue of following the trends too tightly or not moving at all.  It’s finding the approach that makes sense to you as a restaurant operator and your cuisine that matters.

Don’t Ignore a Long Term Trend with Sales Consequences

One trend we know for sure is changing is the lunch business. The long lunches where people go out for an hour and half is a shrinking segment. People are now eating more and more at their desk or working from home which means no lunch out at all. 

That changes the dynamics. If you're in the lunch business you must be refreshing your options by expanding to the trends of today.  That include, “meals to go” or carry out, delivery, catering and all the delivery services.  You’re not just making food to order anymore, you’ve having to figure out how to make and stock grab-and-go as well as understand what “travels” well and what doesn’t. It’s not as simple as building a bunch of sandwiches, and putting them in your deli case.

There has to be a plan if both trending and your numbers are telling you lunch is shrinking.  If you used to have 50 covers between 11 and 2, and now it’s down to 11:30 to 1:30 and only 30.  Develop a plan to make up that volume.

If lunch is out but Sunday brunch is in, then take that trend information build the volume back. So, maybe you're never going to get back that long lunch but you can pick up part of it with “to go” and delivery.  Find ways to get the volume back at different other parts of the week.  It will require you to be very targeted, specific and creative.  But that’s why you’re in the business anyway, right?

The bottom line is that trend spotting and trend hopping can be ways to build your restaurant sales.  You just have to decide which trends make sense for your business and pursue with passion.

 Eric and Robin Gagnon, the Restaurants Brokers write on topics of interest to the restaurant industry.  They are the founders of We Sell Restaurants and wesellrestaurants.com.  Their restaurants for sale website can be found online at this link.

First quarter restaurants sales in Atlanta turned in a negative trend of -.7%, only slightly better than the national average for one of the few times that the restaurant brokers can remember in tracking history.  That's the findings from Robert Wagner, CPA and president of NetFinancials who monitors and reports the market's sales with his quarterly report.  .

Wagner measured 118 independent Atlanta restaurants and fully 59% reported negative comparable sales trends.  That's before we even get to quarter two of 2017 which we anticipate to hold further bad news for the market.  The closure of I-85 based on the alleged actions of Basil Eleby and two other people -- all believed by investigators to be homeless, when they torched the bridge led to businesses entirely cut off from traffic, large numbers of never before telecommuting professionals and traffic snarls that made getting to and from your home a main priority - not stopping off for food or drink.  The actions brought much of Atlanta to its knees and the impact on restaurant sales in quarter two with the I-85 closure from March 30 to May 12, (most of second quarter), has yet to be calculated. 

While Atlanta licked it wounds with down trending sales January through March of 2017, things were worse on the national level.  TDn2K’s Black Box Intelligence, a restaurant sales and traffic- tracking company, reported national restaurant Q1 2017 revenues declined by 1.6%. This was the fifth consecutive quarter of negative sales results nationally. Restaurant traffic declined 3.6% nationally in Q1. TDn2K has a massive pulse on restaurant sales.  They publish the The Restaurant Industry Snapshot based on weekly sales from over 26,000 restaurant units and 145 brands, representing $66 billion dollars in annual revenue.

What's Impacting Restaurant Sales for first quarter?  There are several schools of thought but here's what these restaurant brokers think.

1) Competition.  The fast casual segment in particular has been ever expanding on at least a three to four year cycle.  Now it's time for some players to shake out and we're seeing that occur across the country at record levels.  It's not a new trend to see concepts grow and contract.  We have seen ebbs and flows for wholescale parts of the industry over time whether it was a specific type of cuisine (pizza comes to mind) or type of service (full service used to be a thing - before the recession of 2008).  Over time, the strongest will emerge, survive and thrive.

2) Shopping Trends.  A report by a national real estate firm indicated that 9000 Mall locations closed in the first quarter of 2017.  That's not a typo ---  that's four digit closures of retail stores, 9,000 of them in three months.  More online shopping means less trips to the mall.  If customers aren't out shopping on Saturdays and Sundays, does that mean they also aren't eating two or three meals out that day?  Is it easier to order up what you want and eat a sandwich at home?  We think so and ultimately this may drive more business back to restaurants as we are also seeing amazing growth among delivery services. 

3)  Easter Shift.  Back in my retail planning days, a shift in Easter seriously moved dollars around for clothing and footware purchases.  2016 numbers for first quarter included Easter as it fell on March 27th last year, a relatively early Easter.  It was a massive shift in 2017 of two weeks, pushed out to April 16.  At the national level, some pickup may show in the second quarter numbers when this shift is realized though Atlanta will be feeling the effects of I-85 so expect no improvement there.  Customer buying habits are consistent and holiday sales affect the numbers, particularly independent concepts like those cited in the report from Wagner on Atlanta sales.  His group includes only independent operators, not franchises.  .

What does the future hold for restaurant sales and what's an operator to do?  It's the same conclusion we always reach.  The restaurant business is a tough master and those within it face challenges each day.  Never stop improving.  You must be laser focused on sales and attuned to the customer's patterns.  While tough, the restaurant business is a robust and amazing part of the nation's economy and Americans love to eat away from home.  The smart operators will figure it out.  This is one quarter, not a lifetime.

What happens in May?  It's time to celebrate Memorial Day and kick off the summer!  Most kids are out of school and the line at the local ice cream or yogurt store seems never ending.  It seems like it's also the month for buying restaurants if this top ten report of restaurants for sale by the restaurant brokers is any indication.  We rank our top ten list of restaurants for sale based on page views, signed confidentiality agreements and calls to our expert restaurant brokers with requests for more information.

Our number one most trafficked listing for the month is a restaurant for Sale in Fort Lauderdale Florida that's priced to move! The great opportunity offered by restaurant broker Ken Eisenband features low rent for a 1700 square foot fully equipped location.

Listing ID:5228 Restaurant Broker Ken Eisenband     Restaurant for Sale in Ft. Lauderdale Can Convert to Any Concept Lease: Expires July 31, 2017 with options to be negotiated Monthly Rent: $2980 Inside Sq. Ft. 1700 Outside Sq. Ft. Price:$29,000 City:Fort Lauderdale Ken Eisenband (561) 350-3365 Are we seeing double? Nope, that really is another South Florida listing under $30,000. This location is decorated nicely and set up for fast-casual service. If you are ready to get into the restaurant location is place is a steal!  Our buyers were looking at both of these and driving up activity.  Listing ID:5311 Restaurant Broker Ken Eisenband     Pizzeria for Sale -- Fast Casual Italian Restaurant in Broward County Lease: Expires January 31, 2018 plus 2 three year options Monthly Rent: $4612.78 Inside Sq. Ft. 1716 Outside Sq. Ft. Price:$29,900 City:Tamarac Ken Eisenband (561) 350-3365 Sports Bar are always a home run. Add a location in a happening Marietta, Georgia and you have a grand slam! This location was such a big hit that it is already off the market. Listing ID:5466 Restaurant Broker Dominique Maddox     Sports Bar for Sale in Marietta. Convert to your own concept! Lease: Expires 2022 Monthly Rent: $9200 Inside Sq. Ft. 5300 Outside Sq. Ft. Price:$69,000 City: Marietta Dominique Maddox (404) 993-4448 Six Figure Earnings! That is why the buyers are clicking to find out more about the downtown Atlanta location. Add a great new lease term and this Bar for Sale will not last much longer!  Restaurant Broker Steve Weinbaum has all the details and has been fielding the calls on this bar for sale. Listing ID:4944 Restaurant Broker Steve Weinbaum     Profitable Bar for Sale Events Venue! Great Location in Downtown Atlanta - SIX FIGURE EARNINGS Lease: New 5 year lease with 5 year option Monthly Rent: $$6162 Inside Sq. Ft. 5300 Outside Sq. Ft. several Hundred Price:$249,000 City:Atlanta Steve Weinbaum (770) 714-4552 On the market for less than 30 days and this HOT listing has made the top 10 list of restaurants for sale.   Located in Roswell, Georgia. Pricing is a factor as this one is well below market.  This location has been open and operating and is ready for a new owner! Listing ID:5486 Restaurant Broker Dominique Maddox     Restaurant for Sale in Roswell with low rent. Can Convert to Any Concept Lease: Expires October 31, 2018 + 3 year option Monthly Rent: $2800 Inside Sq. Ft. 1800 Outside Sq. Ft. Price:$59,995 City:Roswell Dominique Maddox (404) 993-4448 Summer is the season for easy living and it seems kicking back in a bar is on the mind of a lot of our buyers.  Bars for sale drove strong action ont he month including this one in Austin Texas.  This location has more views than days on the market and will fly off the shelf soon. Listing ID:5496 Restaurant Broker Dave Duce     Legacy Bar for Sale Available in Austin Texas. Open 33 years! Lease: Negotiable Monthly Rent: $4000 Inside Sq. Ft. 1800 Outside Sq. Ft. 300 Price:$198,000 City:Austin Dave Duce (512) 773-5272 South Florida is a happening area for this top 10 list. Adding to the list is another sports bar that has done over $2 million dollar in sales for the year.  The Broward County location is driving clicks, views and calls to the Restaurant Brokers for more information.  Opportunities like this don’t come up all the time so buyers are trying to find out more by visitin gour website. Listing ID:5510 Restaurant Broker Ken Eisenband     Sports Bar for Sale in Broward County - Sales in Excess of $2 Million Lease: Expires October 31, 2018 with 3 five year options Monthly Rent: $20709 Inside Sq. Ft. 5796 Outside Sq. Ft. 800 Price:$350,000 City:Coconut Creek Ken Eisenband (561) 350-3365 Austin Texas took up 20% of the slots on the Top 10 this month with Dave Duce posting two new listings that automatically popped up to the top 5% trafficked listings online.  This wine bar for sale offered as an upscale opportunity was creating strong activity and should have a buyer any day now. Listing ID:5515 Restaurant Broker Dave Duce     Wine Bar and Restaurant for Sale is Upscale Austin Opportunity! Lease: expires January 2020 Monthly Rent: $9750 Inside Sq. Ft. 3000 Outside Sq. Ft. 1000 Price:$230,000 City:Austin Dave Duce (512) 773-5272 Colorado was not to be left out of the mix.  Restaurant Broker John Kesterson's listing in Parker had buyer clicking and calling as well.  The signed confidentiality agreements on this one tell us it won't be long until an offer is in play. Listing ID:5318 Restaurant Broker John Kesterson     Profitable Full Service Restaurant and Bar for Sale in Parker Colorado! Lease: Year-to-year. New lease to be negotiated. Monthly Rent: $3600 Inside Sq. Ft. Approx. 3400 Outside Sq. Ft. Approx. 400 Price:$99,500 City:Parker John Kesterson (720) 473-3726

With nearly 300 restaurant and bar for sale listings on the market, hitting the top ten means these were truly special!  The activity generated indicates most will be in the hands of a new owner/operator before long.  Want to check out the hundreds of listings online offered by the restaurant brokers? Check them out at this link.

Restaurant Brokers Eric and Robin Gagnon have been designated by Business Brokerage Press as Industry Experts yet again for 2017.  The Industry Expert program is recognized across the nation for brokers that have in-depth knowledge of a particular type of business.  It's based on a questionnaire distributed by the group that demonstrates specialized skill in an industry and transaction experience.  . 

Eric and Robin Gagnon will be included in the Industry Expert section of the Business Reference Guide published by Business Brokerage Press or BBP.  Experts in this program must qualify through demonstration of in-depth knowledge for a particular type of business.  Only those qualified and approved by BBP may be listed as a source with expert knowledge in their prospective industry. 

The Restaurant Brokers, Eric and Robin Gagnon, have both qualified for this honor for multiple years in both Restaurant Sales and Franchise Resales.  The dynamic duo and husband and wife team are the founders of We Sell Restaurants, the nation's largest restaurant brokerage practice and franchise brand.  

ERIC GAGNON is the founder and President of We Sell Restaurants and wesellrestaurants.com.  He is the nation’s leading restaurant broker.  Eric is an industry expert in restaurant sales and valuation.  He is a frequent speaker, writer and co-hosted the nation's only radio show devoted to the restaurant industry for several years.  Eric is co-author of Appetite for Acquisition, an award winning book on restaurant brokerage published in 2012 and named "Best of" by Small Business Book Awards.  Eric began his career in the financial services industry for Bank of America, Bank of New York and big five accounting firm, KPMG before launching the nation’s premiere restaurant brokerage firm and restaurant brokerage franchise.  Eric is member of the International Franchise Association, the Georgia Association of Business Brokers and the Business Brokers of Florida.  In addition, he serves on the Executive Board for the Southeast Franchise Forum and the Membership Committee of the International Business Brokers Association.  

ROBIN GAGNON is the Co-Founder of We Sell Restaurants and the firm's Chief Marketing Officer.  Robin is one of the most prolific restaurant brokers in the industry and is a franchise resale specialist.  She is also a writer and speaker that has addressed the International Business Broker Association, International Franchise Association, Sysco Food Show and multiple colleges and universities. Robin's expert articles appear online and in print across the country. She co-authored Appetite for Acquisition, an award winning book on buying restaurants that was published in 2012 and named "Best of 2012" by Small Business Book Awards. She is the co-host of the long-running radio show "We Sell Restaurants."  Robin is a member of the International Franchise Association and serves on the Women's Franchise Committee.  She is also the Chair of the Women's Franchise Network - Atlanta Chapter.  

These veteran industry experts have defined the term “Restaurant Brokers” with their unmatched experience, knowledge and count of restaurants sold.  Impactful speakers, they have presented workshops and served on multiple panels for organizations nationwide where they share their expertise. They created and developed training for brokers to obtain the credential of Certified Restaurant Broker.

The two have trademarked their brand, “We Sell Restaurants” and are franchising nationwide. They share their knowledge through one of the most extensive training programs available to the industry. Their multi-platform training program leads to the nation’s only Certified Restaurant Broker designation.

For nearly 34 years, Business Brokerage Press has worked to benefit business brokers through valuable publications, services and resources specific to the business brokerage profession.  In addition to their Industry Expert program, they publish source books for the industry including The Complete Guide to Business Brokerage; and the Business Reference Guide, first published in 1991.

The Business Brokerage Press legacy extends to the International Business Brokers Association (IBBA) as the founders were instrumental in launching this international organization.  For over 10 years, Tom and Barbara West of Business Brokerage Press had a hand in running the Association until they turned it over to a management association company so they could focus their time and attention full time on BBP.

For more information about We Sell Restaurants, visit wesellrestaurants.com or for franchising information, visit wsrfranchise.com

What's happening the world of franchise restaurant sales?  The media reports pouring in show no signs of interest in franchise restaurants slowing down.  If anything, the restaurant brokers see an uptick in activity.  Here's some of the latest deals we've been tracking in the media.

The Hala Guys are heating up on their Middle Eastern cuisine concept and we see deals happening with increasing frequency for this concept.  Franchise Times reported that AJ Ahmad, who grew up in Abu Dhabi, UAE, has opened the first of 15 Arizona The Hala Guys in Tempe. He plans to add three to four stores in the market.

Mexican cuisine remains on the mind of many in the franchise restaurant marketplace.  We're seeing multiple deals announced including:

• The 10th El Pollo Loco, owned and operated by franchisees Anil Yadav and Atour Eyvazian  of AA Pollo Inc., has opened in Spring, Texas. The 2,960 square foot restaurant is the second on to open in the market.
• Del Taco signed a multi-unit franchise development agreement with experienced restaurateur Tom Getz.  He plans is to open the first of seven units in the broader Chattanooga area by 2019.  Locations are planned throughout Hamilton and Bradley counties in Tennessee, as well as expansion into several Georgia counties.
• Five Tacos 4 Life franchises are opening in the Dallas, Texas, area, the first in the region for the fast-casual taco restaurant company.  The development is being led by the former president of CiCi's and Nothing Bundt Cakes, Craig Moore. 
• This one's not a franchise restaurant opening but it is noteworthy as Atlanta chef, restaurateur, speaker and cookbook author Kevin Gillespie is opened Communion Cantina, a Mexican-inspired beer garden and eatery behind his popular Revival restaurant in Decatur on Cinco de Mayo.  The new store will serve tacos, West Coast, Mexican, domestic and local beers and margaritas. 

What's going on with Smoothies and Juice Bars?  The restaurant brokers see a lot of activity in these concepts led by some stellar results by Smoothie King who is on fire with the highest number of franchisees ever inked for a single month for March of this year.  Here's everything we read about recently for franchise sales of smoothie and juice concepts.

• Willie Smith, of EON Brands Inc., a former United States Marine, added a second Juice It Up! to his portfolio. This location is in the city of Temecula in Southern California.
• Smoothie King is stirring up the market as well as the Smoothies.  In the first quarter of 2017 they opened 28 new stores in 15 states and signed 34 franchise and development agreements for 48 new stores.  Their plan for 2017 is an aggressive one with a goal to open 125 new stores in 2017, 25 percent more than last year.  
• Not to be outdone, Tropical Smoothie Café is also growing.  Craig and Dianne LeMieux, area developers for the Colorado region, are spearheading Tropical Smoothie Cafe's expansion throughout the Centennial State. Cities targeted will be Colorado Springs, Denver and Centennial. In addition to their development efforts in Colorado, the husband and wife team are also Tropical Smoothie area developers in Michigan and Ohio. They currently have a total of 58 open locations throughout their markets, with an additional 39 cafes in development.
• It's not just Smoothies showing strong growth.  Dunkin Donuts is also expanding by way of their existing franchisees and new ones. Dunkin' Donuts signed a development agreement with existing franchise group Maruti Donuts, LLC to develop six new units in Evansville, Indiana, including one multi-brand location with Baskin Robbins. The group has more than 20 years of experience as a Dunkin' Donuts and Baskin Robbins franchisee and currently owns 12 multi-brand locations operated collectively with family members.
• In Louisiana, new franchise group and quick-service veteran SWLA Delights-led by brothers Gul and Vick Awan--signed a four-unit Dunkin' deal (including one multi-brand restaurant with Baskin Robbins) for the Lake Charles area. The brothers have more than 20 years of combined experience operating QSR concepts and gas and convenience store locations throughout Lake Charles and Lafeyette.
• Dunkin' Donuts has signed multi-unit store development agreements in North Carolina with two franchise groups, including a new franchisee, HARA Foodservice Group, LLC, who will develop four restaurants the Charlotte area, within Hickory, Lenoir, Marion and Morganton.

Burgers continue to grow though we have seen some slow down overall in this category.  Nonetheless, both Smashburger and Bojangles announced recent deals.

• QSR International, the master franchisee of Smashburger for Central America, the Caribbean, and parts of South America has opened in Panama.  This is the second of five restaurants committed to open in Panama over the next 30 months. This unit is located within the Magic Zone in Albrook Mall in Panama City, one of the largest shopping centers in Central America.  Panama is the third country in the Central American region in which the group has opened Smashburger restaurants. 
• Bojangles' has signed a multi-unit development to open four new Bojangles' restaurants over the next four years. Potential locations include Chesapeake, Portsmouth and Virginia Beach, Virginia. The agreement is with VABO Inc., an ownership group currently owns and operates several Hwy 55 Burgers, Shakes & Fries in South Carolina and Georgia.  Bojangles’, Inc. also announced a multi-unit development agreement with new franchisee MSR Restaurants, LLC of Mitchellville, Maryland.

It's interesting to see that latest group allowed to own both Bojangles -- fast food featuring burgers and fries along with the Highway 55 concept. 

Other deals the restaurant brokers saw announced this month include:

• Huey Magoo's Chicken Tenders opened the latest location in Orlando run by franchisees Al Dhanani and Amir Dhanji, who also operate the Oviedo location and the soon to open Gardens on Millenia location.
• The Greene Turtle welcomes its 47th location with franchisees Pranav Desai, Jiger Patel and Rajan Mahadevia, doing business as The Integritty Group. Their new restaurant is located in North Wales, Pennsylvania. They also plan to open additional locations in Montgomery, Bucks, Lehigh and Northampton Counties.
• Wetzel's Pretzels has opened its newest location at Indian Wells Tennis Garden, the So Cal legendary tennis complex.
• HuHot Mongolian Grills, opened its 22nd location April 13 in Lawrence, Kansas.  FRC Group, the largest franchisee of the concept says more openings are scheduled for 2017, including Champaign, Illinois, and Shawnee, Kansas.  Bill Trevvorow, HuHot's newest franchisee and a current Subway multi-unit 'zee, is preparing to open his first HuHot in Lake Delton near the Wisconsin Dells tourism area, and HuHot has six additional openings planned for 2017.
• Willie Jewell's Old School Bar-B-Q, are opening their third location in Georgia, this time in Marietta. Willie Jewell's also has multi-unit deals signed with Chip and Amanda Evans for locations in Tallahassee, Florida, and with Black Diamond Capital, LLC to develop restaurants in Tampa, Florida. Based in Jacksonville, Willie Jewell's is the fast-casual spinoff of the Bono's Pit Bar-B-Q concept.
• Georgia-based Amici Italian Café has awarded a 20-unit franchise deal to Stonemont Financial Group, a private investment firm headquartered in Atlanta.  Stonemont will open new Amici restaurants across North and South Carolina with the first location adjacent to the campus of Clemson University.  It will open in the fall of 2017. In addition to the new 20-unit deal with Stonemont, Amici is building a newer location in Madison, Ga., where the restaurant group is headquartered and will open a corporate location in Gainesville. Two other new franchise locations in Macon and Augusta are also in the works.
• Cauldron Ice Cream is opening in Glendale, California.   Jack Liu is the franchisee opening this location. He has signed a multi-unit deal with the Santa Ana-based ice cream shop company. The first of Liu's locations is expected to open in July.
• Native Grill & Wings announced its first Massachusetts location opening in Oxford in April as part of a multi-unit agreement.  Franchisee Andy Colby of ANCM Group Inc., has signed for two to three total units in the Boston market, to be developed over the next three years.
• Primal Kitchen Restaurants will open its first franchise location in May in Granger, Indiana, part of a three-unit deal with franchisees Tom and Tara Olson for the South Bend, Indiana, area. The health-focused, fast-casual concept also has multi-unit deals signed for the Santa Cruz, California, area as well as three units in the Pacific Northwest.

Overall, while the restaurant brokers continue to hear rumbling of softening sales, particularly in the QSR industry and despite a very crowded marketplace, it appears the appetite for new franchise restaurant sales shows no sign of slowing.  Restaurant Brokers Eric and Robin Gagnon say of the trend, "We continue to see Franchise Restaurant Sales Boom despite QSR sales softening.  In our opinion, this is indicative, for new concepts of everyone chasing the "next big thing" while multi-unit owners return to the well on concepts already paying out for them."

Interested in seeing what the restaurant brokers have for sale?  Check out our restaurant for sale listings online. 

Getting a meeting with the buyer is the first step in selling your restaurant.  Here are ten tips to keep the deal on track once the meeting is set.

When a buyer visits your restaurant as a customer and decides they are interested they will often request a meeting with the seller to see the back of house and the rest of the operation.  That can be a valuable next step as long as you are prepared and adhere to these important “Do’s and Don’ts”.

Do Schedule the Meeting to Ensure Confidentiality

An experience restaurant broker will always protect your interest by working around your business hours.  That typically means a buyer meeting early in the morning or late at night.  If a buyer cannot be flexible on this point or insists on the seeing the back of house when the store is open, consider whether he or she is a good fit for the business overall.  While you can allow the buyer to view the backend operations posing as an insurance agent or interested franchisee, it’s much easier to simply schedule this during “off” hours.

Don’t Ever Meet Without the Broker

You never want to have a meeting with the buyer without the presence of your restaurant broker.  This is because the restaurant broker can act as your mediator between your wanting to be helpful as possible to the buyer and the buyer wanting to obtain as many tidbits of information as he can.  It is important to remember that not all buyers who inquire about your business will do so with the best intentions in mind.  If they ask your restaurant broker a question and hear an answer that they don’t like chances are they will turn around and approach you with the same question in an effort to get the answer that they are seeking.

Don’t Share Copies of Financial Records

When you meet with the buyer it is okay to review and discuss financial information with a buyer that is pre-qualified however, never share copies of financial records with the buyer.  This information should be channeled through your restaurant broker to protect your best interest.

Don’t Offer a Business Card

Avoid sharing your business card with the buyer because this encourages him to contact you directly. If the buyer requests your business card or tries to approach you with questions, always refer him to your restaurant broker for the information he needs.  Tell your broker that the buyer has attempted to contact you so they can inform the buyer that (in most cases), he is violating the confidentiality agreement.

Remember that your restaurant broker has worked with buyers thousands of times and this may be your first exposure.  You don’t want to lessen the chances of your restaurant to sell by giving the wrong information, too much information or the right information but just too soon in the process.

Do Be Personable and Brief

Try not to offer too much information during your meeting with the buyer.  It is quite normal to be nervous which can cause you to reveal too much information about your business.  You do not want to tell the buyer about situations that could raise issues such as telling him that you were once close to bankruptcy and you pulled out of it and built up the business to what it is today.  Instead keep your answers brief, focused, and personable.

Don’t Be Late

Make sure you are on time for your meeting with the buyer.  If you know your staff leaves at a certain time then schedule your meeting a few minutes or half hour after they leave so you are not held up by concerns or questions from your staff.  Being late to the first meeting with the buyer may get the deal started off on the wrong foot.

Do Say Why You Are Selling

Always make sure you state your reason for selling.  Although you may have shared the financial details, buyers always want to know the reason you are selling.  When you are providing your reasons you should not reveal any personal information that is compelling you to complete a quick sale.  First of all, this is none of the buyer’s business and secondly, it could cause you to lose your leverage with the buyer.  So avoid telling the buyer that one of your business partners has cancer and only has six months to live.

It is okay to provide reasons such as disagreements among partners, retirement, lifestyle change, or taking care of your elderly parents in a distant location.  These are all reasons that are understandable.  Reasons that are not acceptable are age old reasons like you are pursuing other interests which doesn’t make any sense if you’re are currently running a profitable business.  If you are involved with a franchise which isn’t doing well financially, it is okay to reveal this information.  Chances are the buyer will already know by looking at your financial records.

Don’t Give Advice

When it comes to legal advice or liquor license advice, avoid it at all costs and leave it to your broker to provide the legal resources and the contact information for the person handling your liquor license.  While it is okay to tell the buyer the name of the person that handles your liquor license, avoid giving out any advice such as “The liquor license is no problem and here is all you do is….”

Don’t Complain

If you have gotten hosed by your landlord or can't stand your franchise brand any longer, keep it to yourself.  The buyer should be on a journey of discovery and form his own opinions about these and other matters.  You risk raising issues of concern for the buyer that otherwise would not come up. 

Don’t Provide Third Party Information

Avoid giving out your landlord or franchise contact information.  Until your business is under contract the buyer has no legal right to this information.  Furthermore, you do not want the buyer making contact with third parties that you have developed a relationship with.  If the buyer happens to disrupt the relationships and then walk out on the deal you are left to clean up the mess.  Instead send the buyer to your restaurant broker so they can control the third party contact.

A buyer meeting is a logical part of the process for selling your restaurant.  Buyers want to speak directly with the sellers for answers to important questions and to get your point of view.  Make sure you’re familiar with these ten “Do’s & Don’ts” to make sure your deal stays on track and the buyer remains interested.

Are you interested in selling your restaurant?  Contact us for a free valuation.