Advice for Buying a Restaurant and Selling a Restaurant

The sale of Ruby Tuesday to NRD Capital this week caught many by surprise.  One of the restaurant brokers favorite authors, Jonathan Maze of Nation's Restaurant News, immediately penned an article titled "5 Reasons Ruby Tuesday Had to be Sold."  The points in that article align with many of the restaurant for sale listings we advertise each day.

Here are his 5 Reasons the restaurant had to be sold and we'll compare and contrast that with the reasons our sellers ask us to sell their restaurants. 

Reason 1 -- "Same-store sales have been falling for years. Ruby Tuesday’s same-store sales began declining in about 2006."

Generally, our sellers are contacting the restaurant brokers for this same reason.  Once same store sales begin the decline, sellers start to worry and for some, it's easier to pull the trigger on selling than figure out how to grow volume. On the other hand, seeing same store sales rising can also be the catalyst for restaurants to sell.  Often our sellers are smart enough to jump when the trend is rising rather than waiting for a fall off in revenue.

Reason 2 - "Bar & grill chains are on the outs."   According to Jonathan's article, "Ruby Tuesday operat

es in a sub-sector of the restaurant business that is in steep decline."  He cites examples like Applebee’s, Chili’s, TGI Friday’s and Ruby Tuesday as chains that were booming in the 90's but are facing tremendous challenges today.  Is that correct?  Well, the restaurant brokers agree.  Once legendary and quick to turnover, bar and grill chains are not quick sales today.  Why?  For most, they have very large footprints and along with that, high occupancy costs.  Rents have been rising for the past six years and once those per square foot costs are applied to large spaces (these are 5,000 square feet and larger), the monthly cost to keep the doors open can be staggering.

Fast casual concepts operate in smaller footprints and for that reason, can operate more inexpensively, meaning their fixed costs are lower.  This is definitely a reason for Ruby Tuesday to sell.  It can also be a reason for restaurant sellers to reach out to us.  The Restaurant News writer says, "Bar & grill chains likely have to close hundreds of units to get supply more in line with current demand."  The restaurant brokers agree. 

Reason 3 - "It’s more valuable as a real estate play."  According to documents filed on the sale and quoted from the article, "the sale to NRD gives Ruby Tuesday an enterprise value of $335 million. Its property and equipment assets are valued at $583 million, according to SEC documents.”  In other words, the property values exceed the value of the business itself. 

This was the first thing these restaurant brokers discussed when we saw this news hit the wire.  This is a real estate play. Do others come to us with this reason for selling? Yes.  On more than one occasion, we've seen buyers strip out a concept and take it over for the value of the location, the lease, or the property.  It's definitely a reason we've seen for others to sell a restaurant. 

Reason 4 - "The chain is losing money."  There is no doubt that Ruby Tuesday lost money for several years.  The article we reviewed stated the chain hasn't seen a profit since 2011.  Six years without earnings is definitely a reason to sell.  Is it the reason that restaurant owners contact the restaurant brokers to sell their restaurants?  It is, but only about 30% of the time.  Most of our restaurants for sale are in fact, cash flow positive.  We see only less than a third come into the market losing money.  Most sellers are looking at other reasons to exit the business including:  retirement, partnership splits, divorce, or lifestyle reasons.

Reason 5 - "The Company has a history of strange moves."  The last reason cited by the writer is one of our favorites.  He said it nicely but essentially said the company does stupid things.  He reminded us that even as Ruby Tuesday was on unsure footing, they were exploring and investing in other concepts including:  Asian Cuisine, Seafood and even BBQ at one point. 

We can’t say that this is a common reason for selling your restaurant.  What we do see however, is a lack of judgment and failure to make critical moves when a business starts trending in the wrong direction.  We review the financials for dozens of locations each month.  We often ask sellers why they haven’t adopted a delivery model or why they reduced advertising over the past year when sales are declining.  Some of the responses reflect less than sound reasoning.  The failure to do what’s necessary to drive the business creates an opportunity for a would-be restaurant buyer.

All in all, the five reasons Ruby Tuesday had to be sold are on par with the reasons we see many restaurants come into our inventory. 

If you’re looking for restaurants for sale, check out our inventory online at this link.

The latest Pho Restaurant for Sale in Austin has moved to the sold column thanks to the efforts of Certified Restaurant Broker, Dave Duce.

The high demand location, Pho Fortune was recently purchased by Rachel Su of Rachsuma, LLC, after a very brief time on the market.  

The new owners did an entire re-branding of the operation as Basil Thai Little Hot Pot, at 2501 W. Parmer Lane in Austin Texas.  They were impressed by the history and location of this restaurant for sale.  The business is right off of a six-lane divided roadway in the midst of a busy strip center full of shopping, services, and other dining options.

The new owners of the restaurant for sale wasted no time undertaking the new concept.  The deal was closed on July 31 and a soft opening under the new concept occurred less than one month later!

The new concept, under the name, Basil Thai Little Hot Pot will feature Thai cuisine with a delicious curry-infused menu.

The restaurant sellers, Andy and Jennifer Tang were ready to expand their career options and reached out to We Sell Restaurants.  Dave Duce, Austin’s only Certified Restaurant Broker, had this to say of the transaction, “Helping sellers like Andy and Jennifer is one of the most satisfying parts of my role.  When they were ready to move to a new venture, it was a joy to help them transition to a new career. This was a very popular restaurant for sale listing and we had more than three dozen interested buyers in a very brief time.”

The restaurant for sale by Duce was listed and sold in just 155 days, much faster than the average for transactions nationwide. 

Eric Gagnon, president of We Sell Restaurants, had this to say of the transaction.  “In general, we are seeing faster turnover in the Austin market than some other parts of the United States.  There are limited restaurant for sale opportunities and many buyers, so deals are moving quickly.”

Dave Duce is the Franchise Partner for We Sell Restaurants in Austin Texas.  A restaurant industry veteran, Dave understands the business from the ground up.  Dave is the only Certified Restaurant Broker in the Austin Market.  He underwent extensive training with We Sell Restaurants, along with testing, to receive this designation.  Dave is a member of the Greater Austin Restaurant Assoocation and the Texas Association of Business Brokers.  

Are you in the market for a restaurant for sale in Austin Texas?  Click on the link for more opportunities in the booming marketplace.

Have You Considered Looking for a Food Truck for Sale?

Many people with no chef experience dream of owning a restaurant someday, and many people with culinary skills cringe at the idea of everything that comes with owning a restaurant. Someone who wants to sell their delicious tacos to the lunchbreak crowd doesn’t want the overhead of a brick and mortar location, large staff, maintaining a restroom, paying expensive utility bills, and the biggest headache of them all: dealing with a landlord. Considering a food truck for sale from the Restaurant Brokers will eliminate most, but not all of these qualms, and will enable you to choose where you want your business to be located each and every day!

Take for example listing 5064, a food truck for sale from the Restaurant Brokers located in Broward County. For $40,000 you can be the owner of your very own mobile eatery. Bring your own concept as this food truck for sale has all the equipment needed to prep, store and cook a variety of menu items. Think you’ve got the best ground sausage breakfast sandwich around? Sell them to the masses from this food truck for sale that has been well maintained and recently fitted with six new tires and a new battery. The only thing this food truck for sale needs is your concept and a new vehicle wrap promoting your business.

Another food truck for sale in Broward County, Florida, is listing 5502. Listed at just under $90,000, this is a large vehicle totaling 27 feet in length. Think about all the space inside to whip up your delicious recipes for hungry festival-goers! The current concept is chicken and burgers, and the food truck for sale is equipped with deep fryers, a grill, cooler, freezer, sink, and so much more. With equipment like this, you can offer an expansive menu to include not only grilled but also fried food. Don’t fret about having enough business – this food truck for sale comes with all of its social media accounts totaling almost 10,000 followers.

Interested in quirky concepts? Check out this unique food truck for sale, listing 5687, located in Centennial, Colorado for less than $55,000. This is a brand-new food truck for sale that has been constructed to resemble a stage coach from the wild west! The builder spared no expense on this food truck for sale and constructed it with fire retardant lumber, Italian leather, and stainless steel. This food truck for sale is not currently equipped with any appliances as the builder wanted the new owner to be 100% able to outfit the vehicle exactly as they want it. Don’t worry about how you will transport this food truck for sale – it also comes with an option to purchase an enclosed trailer! Imagine the crowds that this food truck for sale will draw to it from curious passerby!

If you’ve always loved preparing food for a crowd and want the freedom of owning your own business but not the responsibility of a sticks and bricks restaurant, you absolutely need to consider one of these food truck for sale listings. But don’t stop at just these – We Sell Restaurants has multiple food truck for sale listings across the country. What else is great about these food truck for sale listings? If you aren’t located where they are, hop on a plane and drive it to where YOU want it to be! Check out these and our other listings here.

A lot of deals were made in September and the Restaurant Brokers are excited to pass along the latest franchise restaurant sales deals inked in the industry.  Here's the scoop ranging from pizza, to famous celebrity restaurants, and even those encouraging veterans to become business owners.  

Round Table Pizza recently announced its acquisition by Global Franchise Group (GFG). Round Table has over 500 locations in the United States, Dubai, Bahrain, and Mongolia to name just a few. The pizza franchise is well-known for their active involvement within the communities their franchises are located in, as well as for partnering with the Make-A-Wish Foundation. Round Table Pizza is famous for their made-from-scratch sauce and daily hand-rolled dough.

GFG is based out of Georgia and specializes in quick service restaurant franchises in addition to franchise retailers and other products. The firm operates over a thousand franchise locations spanning more than 40 countries. In addition to the newly acquired Round Table Pizza, GFG also owns MaggieMoo’s and Marble Slab Creamery. 

Hy-Vee, an employee-owned grocery chain that operates over 240 locations throughout the Midwest, is now in a partnership with burger chain Wahlburgers, which is owned by famous actor/musician brothers Donnie and Mark Wahlburger along with their chef brother, Paul. The brothers and their burger chain are also the subject of the A&E show of the same name. The famous family are also owners/operators of Alma Nove, a restaurant that they have had since before opening Wahlburgers.

The deal between Hy-Vee and Wahlburgers makes Hy-Vee the largest franchisee of Wahlburgers, with plans to build 26 new standalone restaurants. Hy-Vee’s restaurants, Hy-Vee’s Market Grille, will also serve select Wahlburgers items at their 84 locations.  Those watching franchise restaurant sales closely will notice that Wahlburgers has been announcing growth frequently over the past year.

The Green Turtle Sports Bar & Grille has penned a deal with Jai Somnath, LLC to develop 10 units in a franchise restaurant sales deal announced for Pennsylvania and New Jersey. The Green Turtle opened in 1976 on the Boardwalk in Ocean City, Maryland, and has since expanded to 44 location along the East Coast. The Green Turtle is the go-to place to view professional sports on the televisions and to enjoy killer drink specials.

Jimboy’s Tacos is expanding their presence in Southern California thanks to a deal with All American Taco Company, promising 20 new franchise restaurant sales locations.

Jimboy’s was founded in 1954 in Grass Valley, California in a trailer converted into a mobile cookery. The taco producer has since expanded to include 38 locations in northern and southern California as well as Nevada. For those of us on the East Coast wondering what the buzz about Jimboy’s is all about – wait patiently, big plans in the future include extending franchise locations across the nation!

The trend toward healthy food alternatives continues to develop.  Two newest franchise restaurant sales announced in this health food sector are for Grabbagreen and Juice it Up!   

Grabbagreen and Green & Go, LLC recently entered into an agreement that promises to develop 10 stores in Southeast Michigan over the next five years. Grabbagreen is a healthy fast casual franchise with many organic menu options, and currently has 24 locations across the United States. They will be grabbing lots of green in the near future, as they have 98 store agreements and over 174 development agreements in the works!

Juice It Up!, a franchise that specializes in smoothie and raw juice bars with 89 locations throughout California just announced that two more franchise locations are in the future for SoCal. This comes after Ken Hardy, a veteran Marine, along with his wife, Kristina, became new franchisees through Juice It Up!'s VetFran Platinum Program. The VetFran Platinum Program offers a $15,000 discount on initial fees.  They also waive 50% of the initial fee for the second unit.  

Are you interested in purchasing an existing franchise restaurant sales available in the market?  Visit our website.  We also help existing franchisee looking to sell their buisness.  Contact us today!

Restaurant Broker Dominique Maddox closed the deal on frozen yogurt business for sale, La' Berry Frozen Yogurt Café in Savannah, Georgia.

La’Berry Frozen Yogurt Café in Savannah, Georgia is no longer listed as a frozen yogurt business for sale. This location was not on the market for long before it was sold by Restaurant Broker Dominique Maddox.

The new owners, Rani Marapally & Vijay Basireddy, knew they couldn’t pass up this great opportunity when they found this frozen yogurt business for sale. Marapally & Basireddy have extensive business experience, and the acquisition of this frozen yogurt business for sale will be their first venture into restaurant ownership. The seller, William Klein, purchased the store in 2016 and has decided to relocate, hence the reason he listed this business with the Restaurant Brokers.

The location of the now off the market frozen yogurt business for sale couldn’t be more ideal – right next to a corner store on busy West Broughton Street. This heavy-traffic street is also home to the nearly 100-year-old Lucas Theatre, Gutstein Gallery (which has displayed original artwork from the likes of Yoko Ono), and the popular Paris Market and Brocante. La’Berry is also close to major retailers as well, including J. Crew, Kate Spade, Urban Outfitters, and H&M. What better way for tourists and locals to cool off after a busy day of shopping than with a cold, sweet treat?

When Marapally & Basireddy researched this frozen yogurt business for sale they did not want to miss out on what Restaurant Broker Dominique Maddox called “a store located in a prime tourist area in Savannah.” Maddox also stated that the new owners purchased this frozen yogurt business for sale “during tourism season, so they won’t lose out on the summer sales!” For the remainder of this season the location will operate as La’Berry, however the new owners will re-brand into an independent store with multiple different sweet treats on the menu!

La’Berry was not your typical frozen yogurt business for sale. The new owners enter into a great opportunity with a loyal customer base that keeps coming in week after week.  Couple that with the tourist traffic that this location sees, and they will be kept busy with their new business venture! If the new owners decide to add more hours and increase the current marketing efforts after the revamping, this location is sure to be an even bigger hit with its customers.

Certified Restaurant Broker Dominique Maddox holds a real estate license in the state of Georgia. He holds a BBA in Business Management from Morehouse College. Maddox was the proud recipient of Business Brokers 2011 “Rookie of the Year” award and was elected to the Board of Directions of the GA Association of Business Brokers in 2012.

Are you in the market for a frozen yogurt business for sale such as this one? Click on the link to be taken to our bagel shops for sale across the country, and check out all of the listings We Sell Restaurants® has to offer here.

It’s a buyers’ market for restaurants for sale in Georgia, and Restaurant Broker Steve Weinbaum has the listings in the Atlanta metro that buyers are searching for. Check out these three restaurants for sale in Georgia, but don’t delay, these listings are sure to be SOLD in no time at all!

First up in our featured restaurants for sale in Georgia is a casual concept in Suwanee that has been operating for over 10 years with steady sales growth year after year. The menu is focused on rotisserie chicken, hearty burgers, wings and barbeque, and a beer and wine license is in place. Included in the purchase is a newly remodeled kegerator, large hood with fire extinguisher system, deep fryers and much more. You can’t go wrong with the location – right on a busy commuter road in a strip center that also houses major chains. The current owner is seeing a benefit of $70,000 per year. Restaurant Broker Steve Weinbaum noted, "This business was recently remodeled and has been a local favorite for over 20 years. It's in a prime location close to a busy intersection with a great lease rate of only $5,500 per month for over 4,000 square feet."

If limited operating hours are what you’re seeking in your search for restaurants for sale in Georgia, this office café is the perfect match for you! The location is prime – within a busy office complex with thousands of employees. Monthly rent for this business is $500 – practically unheard of for restaurants for sale in Georgia! The doors open at 7:00AM to serve breakfast menu options to hungry office workers, many of whom return at lunchtime to fuel up on a delicious Panini or freshly prepared salad. Current sales are nearly $170,000. Restaurants for sale in Georgia with income this high, and rent this low don’t last long! Restaurant Broker Steve Weinbaum says, "With zero competition, limited operating hours, and unbelievable low rent, this office complex cafe won't last long!"

Restaurants for sale in Georgia in the franchise sector don’t get much better than this sub sandwich franchise. It’s incredibly rare to have the opportunity to become a franchisee with zero royalties, but that is exactly what you will get with this business for the next five years! This chain has 300 locations and each year continues to add more. The menu consists of subs both hot and cold as well as ala carte side dishes to satisfy even the pickiest of eaters. The current owner benefit is over $42,000 with sales of nearly $235,000. Restaurant Broker Steve Weinbaum states, "This national franchise sandwich shop is in a great metro Atlanta area, and is ready to be purchased at a fraction of the cost to build from scratch."

Steve Weinbaum is a Certified Restaurant Broker with We Sell Restaurants who has extensive experience in areas including marketing, relationship management, and lease and contract negotiations. As a Restaurant Broker, Steve dedicates himself completely to each transaction from the beginning of the process through the very end. Steve is ready to help you with your search for restaurants for sale in Georgia.

If you are ready to purchase one of the many restaurants for sale in Georgia, or if you’re interested in selling one of your restaurants for sale in Georgia, contact Restaurant Broker Steve Weinbaum today at 770-714-4552 or via email at [email protected]. Click here to view all of the restaurants for sale listings from We Sell Restaurants.

We Sell Restaurants announces their recent bagel shop for sale, Bagel Tree in sunny Delray Beach, Florida as been sold by Restaurant Broker Ken Eisenband.

Bagel Tree in Delray Beach, Florida, is a popular, 30+-year-old Palm Beach County bagel shop for sale that recently changed hands.  This location, is a crowd pleaser featuring an extensive breakfast and lunch menu that includes French toast, burgers and salads. A popular listing, this bagel shop for sale go, was one of the larger on the market with seating for 120 guests, and easily accommodating the large breakfast or lunch crowd. 

Delray Beach-based MJM Restaurant, Inc. contacted Restaurant Broker Ken Eisenband and sliced their way through the competition to score this bagel shop for sale that was on the market for less than six months. The sold bagel shop for sale, located on the high-traffic Atlantic Avenue in Delray Beach, has numerous four-star customer reviews on Google, Facebook, and TripAdvisor. Delray Beach is part of the Miami metro area and, as of the 2010 Census, was home to over 60,000 people.

The seller, Artie Levitz, is the original owner of the location, and after 31 years of owning and operating Bagel Tree, he was ready to list his bagel shop for sale and retire! Mr. Levitz called upon We Sell Restaurants® to list his bagel shop for sale in February of 2017, and after many interested buyers contacted the restaurant brokers, the deal was sealed and the location sold in June.

Mr. Levitz has had thousands of satisfied customers over the years. Some reviews that stick out regarding the quality of food and service, and patrons include:

• “You may even make a new friend here, very friendly customers!”
• “Very friendly and attentive wait staff.”
• “Every dish is prepared with love! Excellent omelets, pancakes, tuna, lox spread and matzah ball soup.”
• “Good menu items, pricing is average but most importantly the food is consistently good.”

The new owners walked into a turnkey operation with over 3,500 square feet of space to prepare and serve breakfast and lunch to hungry Palm Beach county residents. The deal includes the remaining terms of the lease through August of 2021, along with the option to renew at the end of this period.

Restaurant Broker Ken Eisenband closed the deal on this bagel shop for sale and said of the establishment, "This location is key and the seller worked hard for the past 30 years to create an amazing dining experience with high quality food for the customers. The new owners fell in love with the location of this bagel shop for sale and the working hours are perfect for them."

Are you in the market for a bagel shop for sale such as this one? Click on the link to be taken to our bagel shops for sale across the country, and check out all of the listings We Sell Restaurants® has to offer here.

If you’re in the market to sell your restaurant, give the restaurant brokers a call at (888) 814-8226, or click here for a free valuation of your restaurant.

Are they Hot or are they a flash in the pan?  That's a question the Restaurant Brokers ask each year when Nation's Restaurant News looks at the "up-and-coming restaurants" to pick their five "Hot Concepts" award winners.  According to the magazine, these five brands are "resounding with consumers and have strong growth potential." 

Do the restaurant brokers agree?  Well, we have to say this year's field is a far cry from the everyday sandwich shop.  It ranges from a "hippie-chic" chain featuring healthy food to a gastropub concept.  Here are their Hot Concepts. What do you think?

Flower Child is first on the list.  This brand has grown to seven units in three years by combining a focus on healthy food with decor that feels like you're back in the 70's and headed to Woodstock. This is not some small hippie chick's brand however as powerhouse Fox Restaurant Concepts kicked this one off in 2014. That's not the only large player attached to chain.  In November, The Cheesecake Factory Inc. made a minority equity investment in Flower Child and North Italia, another Fox Restaurant Concepts brand.  The chain has three stores in Arizona, two in California, one in Dallas and one in Austin (with a second store in the works).  What is the restaurant broker take?  We are seeing this "healthy fare" space fill up quickly with players.  We anticipate some fall out in the next 24 months as Americans say they want to eat healthy a lot more than they actually do. 

Another concept noted as "Hot" is a fast-casual Korean concept called Bibibop Asian Grill. The idea is cashing in on the popularity of bowls — and Korean food, one of the hottest Asian cuisines currently.  The name comes from the Korean dish bibimbap, a Korean dish of rice served in a bowl, topped with vegetables and often an egg and meat.  The chain has more than 20 units and has expanded to Washington, D.C., Los Angeles, Chicago and Dayton, Ohio.  The restaurant brokers opinion on this one is "Thumbs Up!"  There's a void in market for fast casual Korean while most other Asian concepts are well represented.  This has some space to grow. 

Kudos to Restaurant Broker Steve Weinbaum on closing the deal on the pizza restaurant for sale, Mancini’s Pizza!

Mancini’s Pizza operated in Huntington for over 16 years under the same owner, until the pizza restaurant for sale was sold on August 16, 2017 by Restaurant Broker Steve Weinbaum. Mancini’s was a favorite spot for hungry Cabell County customers, with a full menu featuring sandwiches, salads, and piping hot pies. Customers enjoyed washing down their meal with an ice cold drink from the full bar that featured many drink specials.

John Castlegrande brought his best offer and purchased the pizza restaurant for sale in Huntington. Huntington is the second largest city in the state of West Virginia with a population of almost 50,000. It is home to Marshall University, a public college with a 100 acre campus and almost 14,000 students.  The business sits directly across the street from the college and has views of the stadium. Castlegrande will no doubt be serving hungry students and sports spectators alike!

Tony Mancini, the previous owner, cranked out delicious food for the past 16 years before listing this pizza restaurant for sale with Restaurant Broker Steve Weinbaum. When the pizza restaurant for sale was still operating as Mancini’s prior to the sale, satisfied customers left an abundance of online reviews praising the food and service quality. Some noteworthy reviews include:

• “Best pizza place in Huntington. Awesome atmosphere, great service, and delicious food.”
• “We probably spent as much, but got three times the amount of food at any other place. The older rustic pub vibe and the great food make it a place I’d definitely return to!”
• “Went before a Marshall game and not too crowded and our server was great! Highly recommended!”
• “This place is a staple. Tony is a stand-up guy that will work with local causes to provide pizza and at a discount no less.

Castlegrande has closed the Mancini’s business and is bringing a new concept to the space. With the numerous positive online reviews, Huntington residents are no doubt anticipating the reopening of the recently sold pizza shop for sale. Castlegrande is looking forward to serving the Marshall University students, their families, visitors and residents.

Restaurant Broker Steve Weinbaum had this to say of the pizza restaurant for sale deal that he closed: “With this prime location near Marshall University, the new owner will reopen and cater to sports fans ready for another exciting season of college sports. This buyer knew a good deal when he saw it and didn’t hesitate on making a great offer on this business.”

Are you in the market for pizza restaurants for sale such as this one? Click on the link to be taken to our pizza restaurants for sale across the country, and check out all of the listings We Sell Restaurants® has to offer here.

If you’re in the market to sell your restaurant, give the restaurant brokers a call at (888) 814-8226, or click here for a free valuation of your restaurant.