Advice for Buying a Restaurant and Selling a Restaurant
Topics: buying a restaurant
Atlanta restaurant sales are headed back in a positive direction according to the latest survey relesed by Robert Wagner, CPA and President of NetFinancials. His latest data shows that Atlanta Q3 2017 restaurant sales volume increased 1.0% vs. Q3 2016. This is great news since it's the first positive sales increase shown in the last twelve months for the market. The majority of the independent restaurants surveyed (57%) by NetFinancials reported gains.
The numbers were much better than the national results issued by TDn2K’s Black Box Intelligence for the same time period.
The restaurant sales and traffic-tracking company, reported national restaurant Q3 2017 revenues declined by 1.9%. That makes the Atlanta market nearly 3 percentage points (2.9%) better. This was the seventh consecutive quarter of negative sales results nationally. Restaurant traffic also declined 4% nationally in Q3.
Was the Atlanta market a signal that the industry is turning around? The restaurant brokers will take the optomistic route that Atlanta was just a forecast of things to come. National results for October are positive nationwide. Black Box Intelligence released a 0.9-percent same-store sales growth last month, the first time that's happened since May of 2016. TDn2K data is based on The Restaurant Industry Snapshot, including weekly sales from 30,000 restaurant units, more than 155 brands and representing over $68 billion in annual revenue.
The third quarter had the southeast in particular, hit with multiple hurricane and weather events. Atlanta, as one corridor for evacuations may have felt the benefit of those escaping the storms contributing to better growth than the nation. Overall, the market remains strong overall economically, with etro Atlanta unemployment declined in September to 4.1% from 5.0% in September 2016.
For whatever reason, those in the industry are breathing a sigh of relief to see local and national sales begin a turnaround. Eric Gagnon of We Sell Restaurants, said, "This is an industry of ups and downs but ultimately, a necessary part of American lives. While diners may cut back on meals outside of the house or trade down to less expensive choices, the volume in this industry has grown year over year for decades."
Data for this article was released by Bob Wagner, NetFinancials. Robert Wagner, CPA is president of NetFinancials, Inc. which provides a full range of tax and accounting services for restaurant companies. Email: firstname.lastname@example.org. www.netfinancials.com Direct: 404-874-7002
The NetFinancials quarterly Atlanta restaurant sales survey is provided as a public service to the restaurant industry. Copyright NetFinancials, Inc.
The Sample: The 96 non-franchise restaurants were drawn from the metro Atlanta market. Total survey sales volume was $223 million for YTD 2017. The survey includes restaurants in Atlanta’s fast-casual, casual and fine-dining segments opened at least 21 months.
There are all kinds of new franchise expansion deals happening across the country that the Restaurant Brokers are excited to tell you about. From world-famous Dunkin Donuts expanding into a new market in Minnesota to location openings of fast growing cafés, wing, and burger concepts, there are franchise expansions happening across the board. These are all new transactions being built from the ground up. Of course, We Sell Restaurants has dozens of existing franchise for sale listings online. available at this Read on to check out what’s been happening in the franchise restaurant world.
You’d be hard-pressed to visit any city or large town and not be within a few miles of a Dunkin’ Donuts store, and America’s Favorite coffee and donut stop has announced even more locations to open. The Rochester, Minnesota area will see four new Dunkin’ Donuts stores, with the first scheduled to open its doors in 2019. These locations will be opened by Donut Kings, LLC, who also signed an agreement in 2016 with the donut giant to open three locations in the Mankato, Minnesota market. The first of the three locations from the 2016 deal opened in March of 2017.
Dunkin’ is offering special development incentives to encourage franchisees to jump on board the donut train and expand, especially in the Duluth, Michigan area. For anyone not interested in an existing franchise for sale, and instead wishing to open their own franchise, this may be the brand for you as they are very flexible regarding the format of the real estate for new stores. Dunkin allows new franchisees to open locations in fuel stations, educational institutions, and free-standing locations to name just a few.
Further south in Texas, healthy café concept First Watch opened their fourth San Antonio location in September. This comes after the breakfast and lunch café chain opened three other locations in San Antonio just in the past three months! San Antonians were unfamiliar with the brand until just recently, but it looks like they picked up on the award-winning restaurant quickly as the demand for First Watch locations in the area has continued to grow!
First Watch serves up organic cuisine options, eggs from free range chickens, and freshly juiced fruit drinks to name just a few items. The brand has 105 stores operating across 17 states, the first of which opening in California in the early eighties.
North Carolina based East Coast Wings + Grill, made famous for their award-winning flavors, has announced that it will be expanding its reach into the Indian Trails, North Carolina marketplace. This news comes after the signing of a new franchise deal with Chatpatta Ventures, LLC., who are excited to expand upon their range of businesses owned with their first casual dining acquisition. East Coast Wings + Grill currently has 60 locations operating or in the developmental stages, along with plans to open 11 more stores up and down the east coast.
Rounding out the news of franchise expansions is the announcement that MOOYAH Burgers, Fries & Shakes has opened its first Pennsylvania location. Two Guys from Italy restaurant owner John Valerio brought the brand to Dickson City, after he tried the food on a trip to New Jersey and saw the potential it had. Valerio is excited about the possibility of opening even more locations in Pennsylvania after he can determine the success of his first location. MOOYAH is a burger chain made popular by its multiple meat, cheese, and bun options including its signature lettuce bun which is featured on the Iceburger.
There you have it, deals being made and locations popping up at incredible rates! Want to get in on the franchisee action? Check out WeSellRestaurants.com for our up-to-date existing franchise for sale listings as well as hundreds of other restaurants for sale.
Brooklyn Pie Company in Austin Texas is the latest of Restaurant Broker Dave Duce’s pizza restaurants for sale to move into the sold column. Brooklyn Pie Company has been filling the bellies of hungry Central and South Texans for years at each of their six locations. The location of this store on Parmer Lane in Austin was ideal for someone looking to stay busy serving slices. It’s close proximity to Starbucks, a supermarket, and apartment complexes proved to be a winner among buyers searching for pizza restaurants for sale in the market. This listing had 60 interested buyers and sold in under 100 days!
Murat Barin will take over as the new owner/operator of this Brooklyn Pie Company located in Austin, which is the eleventh most populated city in the United States. It is also the fastest growing city in the country with a population of almost one million people, so it’s easy to see why pizza restaurants for sale don’t stay on the market for long! This store is located across the street from a large high school whose students love to grab a slice of pie after a long day of studying!
Michael Chang, the previous owner, established this location in 2008, and after nearly 10 years of owning the store decided to sell his business as part of the pizza restaurants for sale offered by Restaurant Broker Dave Duce. Chang earned top-notch online reviews on both the quality of the food served as well as the service. Some of the most popular reviews had this to say:
- “I used to live in New York, so I have high standards for New York style pies. This is easily the best I’ve had in Austin.”
- “The best calzones I’ve had in Austin and real Brooklyn style pie that is fantastic.”
- “Clean location and employees were really friendly and professional.”
- “I stop in here every once in a while for a slice, salad, and drink for less than $10 at weekday lunchtime. It hasn't failed me yet!”
Restaurant Broker Dave Duce had this to about the market and his pizza restaurants for sale inventory, "These businesses are in high demand. The food cost is generally low and high profits can be made, so these listings like this one do not stay on the market long - you have to move fast!"
Are you in the market for one of our pizza restaurants for sale? Click on the link to be taken to our listings across the country, and check out these and other units offered by We Sell Restaurants® here.
If you would like one of expert Restaurant Brokers to sell your restaurant, give us a call at (888) 814-8226, or click here for a free valuation of your business.
Restaurant Brokers Eric and Robin Gagnon led their team and a volunteer group at the Atlanta Community Food Bank on Nov. 4 from 1 to 4 p.m. They were joined by others in the franchise community including representatives from Shane’s Rib Shack, Any Lab Test Now, Adfinitely and Loud & Clear PR. The initiative was part of the Women's Franchise Network effort to support Franchising Gives Back nationwide.
The We Sell Restaurants team and additional volunteers helped the non-profit organization inspect, sort and package nearly 15,000 pounds of food which in the words of the Food Bank representative, is, "enough to fill five Mini-Coopers." Their efforts will provide meals for more than 8,533 Georgians in need.
In addition, We Sell Restaurants donated $1,500 to the Atlanta Community Food Bank as a matching gift for reaching a goal of 15 or more volunteers for the day. The funds were from the charitable trust foundation established by the Gagnons and We Sell Restaurants that will distribute more than $21,000 annually for the next ten years.
“We were thrilled to have our team members, their family, friends and those in franchising, spend their Saturday afternoon helping out our community. As we head into the holiday season, we are always mindful of those in need. The funds we provided will serve more than 6,000 meals," said Robin Gagnon, Co-Founder of We Sell Restaurants.
Eric Gagnon, President of We Sell Restaurants said, "We established our charitable trust in 2016 as a way to pay back the many blessings we've been provided. We are actively looking for charitable initiatives that can benefit from our time and funds and have made a matching donation program available to our franchisees and team members."
The Atlanta Community Food Bank works with more than 600 nonprofit partners—including food pantries, community kitchens, childcare centers, night shelters and senior centers—to distribute over 60 million meals to more than 755,000 people in 29 counties across metro Atlanta and north Georgia.
The Atlanta Restaurant Brokers for We Sell Restaurants turned out including Steve and Cyndi Weinbaum, along with their daughter. Dominique Maddox also included his dauther in a day of giving back.
We Sell Restaurants
We Sell Restaurants is the nation's largest restaurant brokerage firm, representing buyers and sellers in the sale of the restaurant businesses. The firm operates in 42 states across the country. We Sell Restaurants is franchising their concept nationwide.
The recent jobs reports from the U.S. government shows that employment in the restaurant industry rose sharply in the month of October. According to news reports, "employment rose sharply in October as the industry picked up jobs lost the previous month due to hurricane-related closures." The restaurant brokers, along with the rest of the industry, see this as great news.
By the numbers, there were 85,000 jobs added during the month which took the total jobs in the restaurant industry up to 11.7 million. The data is courtesy of the U.S. Bureau of Labor Statistics.
Why such strong growth? Part of the reason was simply a rebound from industry's loss of jobs in September due to the dual hit by hurricanes. Both Harvey and Irma impacted the nation.
Restaurant sales suffered in September as well. Black Box Intelligence reported a same-store sales decline of 1.9% year over year for the September time period. The number of restaurants on the east coast affected by flooding, closures and wind damage contributed to the tough month. The hurricanes impacted traffic as well. Comparable traffic was down 4.0% in September with the West Coast outperforming in the East Coast. The impact of the hurricanes was strongest in Florida where September restaurant sales were reported down by 6.2% and traffic off by 8.8%. October has come roaring back as reflected by the jobs numbers. We are still waiting on the release of sales trending.
Why are the hiring numbers so important? The restaurant industry is a $799 billion dollar industry. Its total size is larger than 90% of the world's economies and equal four percent of the United States Gross Domestic Product. Where the restaurant sales and industry go, so goes the nation's economy. Consider that the total economy added 261,000 jobs during the month of October and more than a third of those came from the restaurant industry.
As the industry grows, it often grows from within. The National Restaurant Association reports that 90% of all restaurant managers started at entry level and 70% of all restaurants are single-unit operations. That makes them a very large component of the small businesses that fuel the United State economy.
The restaurant brokers see these statistic borne out in our interactions with buyers and seller. Those within the industry want to become owners and those who are selling, often started at the same store, before purchasing it themselves.
Where are restaurant sales headed? Our owners on the ground are telling the restaurant brokers that October was a good month for some sectors. Pizza delivery has been hurt by the fall off in NFL viewing as evidenced by the Papa John’s latest earnings disclosure. Sports bars however, may have turned off NFL but ratings for the World Series set records so that may help their sales in the month. For fast casual, we estimate the tide may be turning on restaurant sales as brands react to the market share crunch and beef up both delivery and advertising campaigns. This may be too little, too late for some, but fingers crossed, we’ll see sales settle out of negative territory for October.
Interested in buying or selling a restaurant? Reach out to the restaurant brokers at this link or visit our restaurants for sale online..
October is a spooky month, but there's nothing scary about these ten restaurants for sale that were viewed, clicked, and placed in contract with the restaurant brokers at We Sell Restaurants. From our hundreds of restaurants for sale, these ten garnered the most attention last month. See something you like? Bring your offers fast - these scary good listings are liable to vanish right off the market!
Topping the activity list was a multi-unit deal in a major market. This high earnings opportunity that included the rights to an entire market plus a food truck was a home run with our restaurant buyers. Multiple offers were placed on the business and a contract is in process now. We have one restaurant buyer that is walking away with a great deal on this multi-unit group of franchises for sale.
Quanto Basta Italian Bistro didn’t stay on the market as one of the restaurants for sale in the Metro Atlanta market very long. Thanks to Restaurant Broker Cyndi Weinbaum, this was sold in record time after being on the market for only 62 days!
This particular listing in our restaurants for sale inventory garnered the interest of 27 interested buyers, but in the end Aneta Ardeljan came out on top and scored this Georgian gem. Ardeljan immediately expanded the hours of operation and decided to move away from the more formal setting that was previously in place. She will make it more casual, while still keeping the restaurants signature white tablecloths. A grand-reopening occurred on October 4th which was a huge success!
The grand openeding featured a menu that is staying primarily the same while, and Ardeljan has added some weekly drink specials to the mix such as “Whiskey Wednesday” and “Thirsty Thursday.” On and off-site catering and special holiday menus will keep the guests coming back for more!
The seller of this restaurants for sale listing, BMW Restaurant Group, LLC established the business in 2011 and developed it into the successful eatery. After owning and operating the establishment for six years, they decided to place it in the restaurants for sale inventory of We Sell Restaurants so they could spend more time with their family. This gem was quickly picked up by the new buyer since it had a great location, strong operation and very favorable online reviews like these.
- “Everything was delicious! Best sauce and meatballs! Can't wait to go back!”
- “Waitress didn't charge us for the dessert we ordered since it was our first time at the restaurant. Definitely try this place. Food is great!!!!”
- · “Love the chicken picatta, very nice atmosphere great wine and liquor selection along with very nice staff makes this a great place to come have a nice dinner or gather with friends.”
Eric Gagnon, President of We Sell Restaurants, was confident that this would be a quick sale. He commented, “The Atlanta Metro market is reflective of recent trends reported by BizBuySell research. The market is hot for restaurant sales and the time on market has dropped to one of the lowest levels seen in the past decade. Certified Restaurant Broker, Cyndi Weinbaum did a great job on this trasaction. Cyndi knows how to move restaurants for sale quickly and this recent sale is a reflection of that.”
Cyndi Weinbaum is the Certified Restaurant Broker with We Sell Restaurants in Georgia. Cyndi has extensive experience as a buyer for Macy’s and is a licensed Real Estate Agent as well. Cyndi is ready and eager to help you buy or sell your restaurants for sale, and she can be contacted at Cyndi@wesellrestaurants.com.
Are you in the market for restaurants for sale in the Metro Atlanta area, or anywhere else across the United States? Click on the link for more opportunities to see all of the listings from the Restaurant Brokers for restaurants for sale in your area!
In both March and July of this year, the restaurant brokers anticipated strong sales for 2017 saying in March, “These restaurant brokers see strong growth in the number of restaurants for sale hitting the market in the next two years.” In a second posting in July, we continued to cite strong growth writing at the time that, “While Washington remains caught up in politics as usual and movement is at a stalemate, business buyers and business owners are seeing the impact of loosening regulation, easier lending and better economic conditions” as reasons for the growth.
Now the third quarter numbers are out and one of the largest business-for-sale marketplaces, has backed up the restaurant broker’s forecast by reporting 2,589 transactions in the third quarter, a whopping 24 percent increase over the same time period last year. In total, they have year-to-date transactions at 7,491 putting the year on pace to exceed any year since they began tracking in 2007.
While service businesses accounted for thirty-eight percent of the sales in third quarter, restaurant sales accounted for twenty-two percent of the businesses that changed hands. The financial aspects of the restaurants sold were impressive. Overall, the average unit volume of the units sold was reported ahead of last year by twenty-two percent and cash flow that was ahead of last year by nearly nine percent. The selling price of the units was also up nine percent, demonstrating that sellers with strong earnings can command the best pricing.
All businesses for sale are turning over quicker. The latest data from bizbuysell.com indicates median days on the market has virtually plummeted from 171 days for this time last year to just 146 days. This represents the shortest days on market they have reported in ten years. The Restaurant Brokers at We Sell Restaurants are spot on this number, with their year to date days on market down twenty-two percent from the same time period last year. Eric Gagnon, President of We Sell Restaurants had this to say, "Since late last year, we have been seeing much more interest in our restaurant for sale listings and much faster turnover times. We are also seeing franchisors respond to the need to move more quickly with Discovery Days added and Training Dates shortened to meet demand. All of this is in response to the velocity in the market."
In 2016, restaurants accounted for twenty three percent of all small business sales that year. The median price of the restaurant businesses sold was $160,000 with average unit sales of $485,000. Bars and Taverns outperformed restaurant sales in 2016, with average selling prices of $209,000 and average volume of $543,092.
The Restaurant Brokers at We Sell Restaurants are seeing similar results for 2017 with transactions counts ahead of last year by double digits along with higher selling prices on contracts. We are starting to see a tightening of the credit market associated with SBA lending for restaurant sales. That’s a cautionary point amidst all the optimism. Robin Gagnon of We Sell Restaurants says, "We anticipate continued strong transactional volume through 2019 where we anticipate some tightening of prices after too many businesses enter the market and supply outpaces demand. For now, the market is right if you’re planning to sell."
Interesting is selling your restaurant? Click the link below to get a response right away from the restaurant brokers at We Sell Restaurants.
Are you a seasoned restaurant owner thinking about selling your restaurant but plagued by doubts and afraid of what you don’t know about the process? There’s no reason to be spooked by the idea of selling your restaurant even with Halloween hauntings in the air and little Goblins running to and fro clamoring for candy!
Here are three scary thoughts on every seller’s mind, but you don’t have to be haunted by the idea! The Restaurant Brokers are going to handle those fears one at a time. We are giving you our solutions to these common frightening thoughts when selling your restaurant. Read on if you dare!
1) “My restaurant isn’t making any money or it’s just breaking even or it’s closed. No one is going to want to buy this kind of business.”
The Restaurant Brokers hear this one a lot! It may have crossed your mind. After all, when you’re working to lower taxes, you’re not thinking about selling your restaurant. On the other hand, you may have a good location but just not have the funds to market. The good news is, this fear can just be forgotten. It’s not accurate at all.
Some businesses actually look like there are bleeding from the profit and loss statement even though they generate a nice living for you and your family. Put those books in the hands of a strong restaurant broker and he will recast it based on the owner benefit.
Losing money? Don’t be afraid. There are plenty of potential buyers that want the challenge of starting over in your location. They want existing space that isn’t making money or even a closed location. These types of restaurants are sold as an “asset sale.” You won’t get a ton of money but what you do get is someone new that’s responsible under the lease and a fresh start. Many potential buyers are seeking asset sales in today’s market for access to the leases alone since many have strong long-term leases with option years. They can be in business quicker and do a simple refresh versus building out from scratch. Don’t be spooked by a restaurant with less than stellar results. Our restaurant buyers see this as a great opportunity.
2) “Am I selling a restaurant at the right time? I got a great deal on my restaurant and I’m making a good living off of it, should I even sell?”
It can be very scary to try and “time the market” when selling your restaurant. How do you know when to pull the trigger? It is spooky. For most sellers, it’s a lifestyle choice to get in and they know when it’s time to get out. If you don’t have the passion and energy you once had to approach your customers and open the door, it may be time to say goodbye. It is frightening to think about putting it on the market and letting other people see your actual results but a trusted restaurant broker understands these fears and will hold your hand through the entire process of selling your restaurant.
3) “I don’t even know what my restaurant is worth. My bookkeeper told me it’s worth at least $50,000 more than a local realtor wants to list it.”
Conflicting information can often scare a motivated seller. You may want to run into hiding and stop even thinking about selling your restaurant. Our best tip is to deal with an expert. Bookkeepers see figures regarding sales and spending, whereas realtors look at area comps to judge how to list real estate. While both may be fantastic at what their jobs, they aren’t Certified Restaurant Brokers. Selling your restaurant with a trained and experienced Restaurant Broker will ensure that your business is listed at a competitive price and stays on the market for the shortest period of time possible.
Selling your restaurant shouldn’t be a scary thing, and the Restaurant Brokers want to make the process as pleasant as possible for you. A good first step is to visit our website and request a FREE valuation by clicking here. We are always here to ease any fears that may come with selling your restaurant. Give us a call today at 404-800-6700.