Advice for Buying a Restaurant and Selling a Restaurant

Robin Gagnon

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Restaurant Sales -- March Brings Green to the Industry's Bottom Line

Posted by Robin Gagnon on Mar 17, 2017 12:50:29 PM

Sales may have slipped nationwide in February but restaurant owners are hopeful for a March turnaround. National reporting on sales and traffic indicated a very tough February.  Same-store sales fell 3.7 percent in February, with traffic declining 5.0 percent.  What contributed to the decline?  A few items including weather and shifts in the holiday timing of Valentine’s Day and President’s Day, plus delayed tax refunds by the IRS could be factors, based on feedback the restaurants brokers are hearing. 

st-paddys-day-2049043_1920.jpgValentine’s Day sales can spread across an entire weekend and are especially good when the date falls on either Thursday, Friday or Saturday.  For 2016, Valentine’s was on Monday, close enough to the weekend that Friday and Saturday reservations along with Sundays were all strong.  Moving to 2017, the event was on Tuesday, one of the slowest traffic days for restaurants.  Couple that with many restaurants closed on Monday (that would have opened last year for the holiday) and you just didn’t see the lift in February sales you would normally see for the event.

Another contributor to a slow February is the delay of roughly 40 million tax refunds.  The IRS held onto refunds for filings with Earned Income Tax Credits this year.  In prior years, over 30 million families received refunds in late January which would have contributed to February sales.

That’s the bad news. What’s the good news?  March is here!  St. Patrick’s Day kicks off on a Friday this year versus a Thursday last year.  With all the alcohol and food associated with St. Paddy’s Day, coupled with March Madness (basketball tournaments), we are anticipating a strong March.  Couple that with the late tax refunds hitting in March not February, upticks in consumer optimism and reports of more jobs being created in almost every sector and March could be a banner month for restaurant sales. 

For St. Patrick’s Day, the alcohol sales are unmatched.  Green beer is on the menu at many pubs and restaurants.  Guinness alone will rack in a 13 million pints consumed for the St. Paddy’s holiday which we believe will straddle the entire weekend.  With a pint costing an average of $6 that is 78 billion dollars added to the food and beverage business for the holiday. 

People all over celebrate this holiday with eating, drinking, parades and even some cities dye their entire rivers green. With the first St. Patrick’s day celebrated since 1903 it has grown to a holiday that can help the restaurants rack in their pots of gold.

Most restaurants will be serving up traditional Irish meals with a selection of corn beef and cabbage, cabbage soup, or good olé meat and potatoes. What lead us to these tasty dishes on this holiday? The potato became such a staple in the Irish diet when a terrible potato plague struck the crops in 1845, 1846 and 1847, the impact was catastrophic. Traditional corned beef and cabbage became known as thousands immigrated to the America during the potato famine, most landed in New York City. They joined other immigrants from Europe in the tenements of lower Manhattan. Here their neighbors mostly came from Eastern Europe and an important food in their diets was corned beef. It was cheap sided with plentiful amounts of cabbage and potatoes

 The Irish, many of whom had seldom been able to afford meat were introduced to this nourishing and tasty dish. They adopted it as their own and the celebration of St. Patrick’s Day with an ideal time to indulge in this ingenious combination of flavors and textures. Today more than 26 billion pounds of beef and two billion pounds are produced in the US each year. With the dish having an average price of $10 per plate that is lots of added profit to any restaurant.

The only caveat to all this good news for March is that Easter timing also moves.  While this will have limited impact for fast casual, pubs and other sectors, traditional restaurants that serve as “Special Occasion” locations may see the impact as March volume shifts to April.

The restaurant brokers don’t have a crystal ball but we’re hoping this Saint Patrick’s Day brings a lot of green to our clients and drives restaurant sales to new heights.  After a tough February, it’s time for a little pot of gold for the industry.

Want to see the latest listings by the restaurant brokers?  Follow this link to see our restaurants for sale. 

Check Available Listings

Topics: buying a restaurant

We Sell Restaurants Expands into the State of Minnesota

Posted by Robin Gagnon on Mar 14, 2017 2:02:38 PM

We Sell Restaurants Expands to Minnesota

We Sell Restaurants, the restaurant brokerage franchise selling more restaurants than anyone else nationwide, annouSt Louis.jpgnces their newest franchisee in the Twin Cities Market. Scott Ruby, a licensed real estate agent in Minnesota, has purchased the rights to represent We Sell Restaurants in the area.  The Minnesota location is scheduled to open in April 2017.

This new location marks the 10th franchise unit for the restaurant brokerage brand which began offering franchise units in 2012.  Scott Ruby, the latest franchisee is a graduate of University of South Dakota.  Scott is married to Molly Ruby who is also a licensed real estate agent, and they are the proud parents of three thriving children.

Eric Gagnon, President of We Sell Restaurants, say of the expansion, “We have had tremendous demand from the Twin Cities market for a local franchisee.  We have listed and sold several million dollars in restaurants over the past few years in this market.  Expanding with a local office allows us to provide a superior customer experience for those buying and selling restaurants.”

Scott has extensive expertise in both sales, operations and business management.  He will open his new We Sell Restaurants office with the mission to provide exceptional, unparalleled service to our clients.  

Robin Gagnon, co-founder of the brand says, “Scott is the ideal candidate for our restaurant brokerage brand.  He is focused on reaching his goals, through efficiency, focus on the market as well as client demand, and through application of his fantastic interpersonal skills. He has a dedication for providing uncompromised customer service which makes every transaction he manages seamless and stress free.”

Scott will undergo one of the most thorough training programs in the nation for business brokerage before embarking on his new role.  He will undergo testing before being awarded the title of Certified Restaurant Broker, a distinction held by only a few individuals nationwide. 

Restaurant buyers and sellers in the Minneapolis / St Paul market can expect to hear from Scott starting in April 2017 as the marketing kicks off in the area. Scott looks forward to working with the local restaurateurs, franchisees and potential buyers as they buy and sell restaurants

Topics: buying a restaurant, selling a restaurant

Restaurant Broker Steve Weinbaum Selling Restaurants

Posted by Robin Gagnon on Mar 10, 2017 10:00:00 AM

We Sell Restaurants announces the sale of two stores in the same week by Certified Restaurant Broker Steve Weinbaum.  The Dutch Oven in Hillsville Virginia and Donato’s Pizza in Huntsville, Alabama both changed hands last week.

The Donato’s pizza restaurant is a franchise concept that attracted a lot of attention from restuarant buyers.  It was on the market just 132 days from listing to closing, a very short period of time considering the transfer of the franchise, creation of a new lease and training occurred during that time period.  The listing was very popular but went into contract after only 16 buyers signed a confidentiality agreement on the location and began working with the restaurant brokers.

The Donato’s buyer is James Weinberger, the principle in My Piece of the Pie, LLC.  After undergoing training as a franchisee, he plans to make few SOLD 1.jpgchanges to the store backed by 50+ years of experience and 154 units.  The seller, Ben Wheeler of BDS Investment will be focusing on other business ventures.  Both the Buyer and the Seller had very positive things to say about Stebve and We Sell Restaurants.  His follow-trhough, profesional experience, and attention to details, made the transaction easy.

The second sale of the week for Weinbaum was a charming Breakfast and Lunch restaurant in Hillsville Virginia called the Dutch Oven.  The location, around an hour outside Winston Salem North Carolina was a hit with buyers that wanted a great lifestyle business.  Open for only breakfast and lunch, this iconic location with a small time feel is now in the hands of James Brown, a local resident of the area.  The seller, decided to focus on other business ventures and listed with We Sell Restaurants which placed the business in contract just three months after the listing agreement was signed.

We Sell Restaurants, a unique restaurant brokerage franchise dedicated to selling more restaurants than anyone else has had a very strong start to the 2017 year. 

Eric Gagnon, President of We Sell Restaurants said of Steve’s transactions, “It is always rewarding to see our team members start the year so strongly.  We are predicting record turnover this year based on the quick start to the year and small business optimism which is measured higher than at any time since 1984.”

We Sell Restaurants is the nation’s largest restaurant brokerage firm.  The company began franchising in 2012 in response to strong industry demand. The firm applies a branded systemic process and proprietary web platform to a previously highly fractured industry of sole practitioners. We Sell Restaurants continues to increase the number of SOLD restaurants in keeping with their vision to sell more restaurants than anyone else. 

More information about the brand selling more restaurants than anyone else can be found online at this link. 

 

Topics: selling a restaurant

Are Restaurants Selling?  You Betcha' - Record Number of Businesses Sold in 2016

Posted by Robin Gagnon on Mar 7, 2017 8:46:53 AM

It's official!  According to listing website BizBuySell.com, a record number of businesses were sold in 2016. What's driving all these turnovers?  The Restaurant Brokers have seen strong optimism reflected with the Trump administration in office.  Business optimism has been recorded at the highest level since 1984.   Where did the highest growth in restaurant sales take place?  Bizbuysell said regions suche as Marietta, GA, Tampa, FL, Denver, CO and Dallas, TX showed reported closed business transactions in the triple digits for the 2016 year. Where did resturant sales fall into that category? Try 1731 resturants sold in 2016.

The report from  BizBuySell.com, the Internet's largest business-for-sale marketplace, reported in January that 2016 totals beach 2015 by 8.6 percent and 2014's previous high by 4.6 percent.  Their report, titled the Q4 2016 Insight Report, aggregates statistics from business-for-sale transactions reported by participating business brokers nationwide.  The reAre restaurants selling.jpgstaurant brokers at We Sell Restaurants participate in reporting their sold listings through the site.  

What was the count?  There were 7,842 closed transactions reported in 2016.  Acording to the site, this was, "the highest yearly total of small business sales since BizBuySell first started tracking data in 2007."  They also surveyed business brokers on activity and a record .63 percent of the brokers surveyed had more deals in 2016 than in 2015. Was that the case for the restaurant brokers at We Sell Restaurants?  You betcha with 2016 posting a new banner year for the firm.  What contributed to the growth?  Restaurant Broker Robin Gagnon says it was a combination of factors, "For us, we say many more restaurant sales occuring in the franchise sector and most were financed by our strong SBA lender partners." Bizbuysell agrees, citing the following factors in the growth including:  improving small business environment, more owners looking to sell, more qualified buyers on the market and better financing options.

According to the report, "2016 financial indicators echo the sentiment of an improving small business environment. The median revenue of sold businesses grew 5.2 percent from $449,462 in 2015 to $472,798 in 2016. Median cash flow also increased, up to $107,551 from $102,000 the year prior. These growing financials likely enticed more buyers into the market, spurring transactions.

How did restaurants for sale fare?  In fourth quarter, Bizbuysell says 1731 restaurants changed hands.  That drawfs the next highest turnover cateogry (convenience stores) where 394 sales were reported for the same time period.  The median sales price of restaurants sold in fourth quarter was $160,000 or roughly 90% of their asking price.  Average sales of a restaurant for sale listing in that time frame changing hands was $485,000 and they traded at a cash flow mutlipe of 1.98 percent.  

Where did the restaurant brokers at We Sell Restuarants end with year?  Total transaction counts increased by 19.3% in units sold, another year of record growth.  For the industry, higher demand did not translate to higher prices. According to bizbuysell's report, "The median asking price remained flat from 2015 at $225,000, while the median sale price increased a mere half a percentage point to $200,000. These figures put the average sale-to-asking price ratio at 92 percent. Such a strong ratio indicates the market is becoming more balanced, with both parties coming closer together in their assessment of fair market value."  

Where is the market headed?  These restaurant brokers see strong growth in the number of restaurants for sale hitting the market in the next two years based on three key reasons:

1) Pent up Demand:  Sellers have been holding off on selling for several years because both the tax code and the earnings they could make on their money were not in a positive direction. Interest rate record lows combined with capital gain highs meant owners were better off to hold onto their inventory instead of seling it. 

2) Trump Bump:  The stock market growth is a reality and there is more optimism among small business owners to see regulatory demands decrease. 

3) Baby boomers:  There are 10,000 baby boomers retiring every single day.  Many of those have held off on retiring because the tax code and interest rates didn't favor a "cash out" of their business.  There's no getting past the statistic that the boomers are out there and some of them want to go ahead, cash out and retire.

For these reasons, the restaurant brokers see continued strong growth for 2017, 2018 and 2019.  There is even the potential for the sell cycle to get so high that we see dampening of pricing in the outlying years.  For now,  Bob House, President of BizBuySell.com and BizQuest.com said. "Not only are more small businesses changing hands, but healthier businesses put the new owners in a great position for continued success. This bodes well for the market, but also points to a bright future for small businesses overall."

Want to see the restaurants for sale offered by the Restaurant Brokers?  Check the full list out at this link. 

Check Available Listings

 

Top Ten Restaurants for Sale in February 2017 by the Restaurant Brokers

Posted by Robin Gagnon on Mar 3, 2017 5:48:31 PM

 

Listing ID:5269 Restaurant Broker Ken Eisenband    
Restaurant for Sale in Hollywood - Owner is Retiring
Lease: Expires July 31, 2017 with options to be negotiated
Monthly Rent: $2650
Inside Sq. Ft. 1650
Outside Sq. Ft. 120
Price:$79,000
City:Hollywood

Ken Eisenband
(561) 350-3365

Buyers love to see their options and show their creativity with a blank open ready to lease space! This restuarant space for lease space in Johns Creek is a manageble size in a highly desired area. This location is ready for your new restaurant.  

Listing ID:5274 Restaurant Broker Cyndi Weinbaum    
Restaurant Space for Lease in Johns Creek, Georgia - Great Location
Lease: Negotiable
Monthly Rent: $$20.00 PSF + $4.43 CAM
Inside Sq. Ft. 1200 (Adjacent site can be added bringing total to 2400 Square Feet)
Outside Sq. Ft.
Price:$0
City:Johns Creek

Cyndi Weinbaum
 

Coming in at number three on the most popular restaurant for sale listings this location features one of the most desired trends in Atlanta, Hookah!  On the market for less than 2 weeks and this listing is already making the top 10 list! This restuarant for sale is on fire! Bring your offers to Restaurant Broker Steve Weinbaum. 

Listing ID:5275 Restaurant Broker Steve Weinbaum    
Bar for Sale in the Heart of Downtown Roswell - Profitable
Lease: 2 Years + 5 Year option
Monthly Rent: $3000
Inside Sq. Ft. 4000
Outside Sq. Ft. 225
Price:$249,000
City:Roswell

Steve Weinbaum
(770) 714-4552

South Florida makes it back on top with this restaurant for sale by Ken Eisenband.  This listing comes with a great Florida location and a popular Italian concept. Newly built out in Palm County -- you can keep the current concept or you create your own.

Listing ID:5254 Restaurant Broker Ken Eisenband    
West Boca Raton Restaurant for Sale is Searching for New Owner
Lease: Expires December 31, 2020 plus five year option
Monthly Rent: $3000
Inside Sq. Ft. 900
Outside Sq. Ft. 100
Price:$150,000
City:Boca Raton

Ken Eisenband
(561) 350-3365

Sunshine and Sushi! That is what this Broward County, Florida restaurant for sale listing offers. Profitable as it stands or make it your own with the excellent demographics. Fully equipped and ready to go, this location  will soon have one less fish in the sea.

Listing ID:5087 Restaurant Broker Ken Eisenband    
Profitable Restaurant for Sale in Tamarac Can Easily Convert to Any Concept
Lease: Expires April 14, 2020
Monthly Rent: $2037.50
Inside Sq. Ft. 1200
Outside Sq. Ft. 0
Price:$49,000
City:Tamarac

Ken Eisenband
(561) 350-3365

Before you know it Cino De Mayo will be here and what a better way to celebrate than with a SIX figure earnings from a  Mexican Restaurant for sale located in Houston, Texas.  This listing has been on the market a very short period of time and we have competing offers in play.  

Listing ID:5258 Restaurant Broker Steve Weinbaum    
Mexcian Restaurant For Sale in Houston Texas Delivers 6 Figure Earnings
Lease: 6 Months plus 3 year option
Monthly Rent: $9300
Inside Sq. Ft. 3960
Outside Sq. Ft. 1500 / 1200 covered
Price:$299,000
City:Houston

Steve Weinbaum
(770) 714-4552

Looking for small town living in a big state? This cafe for sale in Colorado comes with a farm to fork concept that keeps locals and tourists visiting. The compact simple menu keeps costs down and allows for more earnings by the owner.  Contact restaurant broker Bob Steinberger to learn more about this opportunity today. 

Listing ID:5016 Restaurant Broker Bob Steinberger    
 'Farm-2-Fork' cafe' for Sale in Colorado!
Lease: 4 years remaining plus 2 year option same terms
Monthly Rent: $900
Inside Sq. Ft. 1400
Outside Sq. Ft. 600
Price:$49,000


Bob Steinberger
(303) 901-4938

It's no wonder this Bar and Grill for sale in Atlanta keeps buyer clicking for more! This location offers their client base fun events that keeps earning high! Earnings over SIX figures this location will surely be gone soon!

Listing ID:5153 Restaurant Broker Robin Gagnon    
Bar and Grill for Sale in Atlanta - Own Your Own Version of Cheers!
Lease: Valid through September 30, 2020
Monthly Rent: $9225
Inside Sq. Ft. 6000
Outside Sq. Ft.
Price:$295,000
City:Lawrenceville

Robin Gagnon
(404) 800-6701

This cafe for sale is gourmet in menu and benefits! Located in Pompano Beach , Florida, super great rent is under $1800 per month.  This profitable restaurant business for sale is forecast to exceed $80,000 in earnings!  

Listing ID:5271 Restaurant Broker Ken Eisenband    
Sandwich Shop for Sale - Profitable Gourmet location in Pompano Beach
Lease: Expires September 9, 2019, plus five year option
Monthly Rent: $1746
Inside Sq. Ft. 900
Outside Sq. Ft. 300
Price:$150,000
City:Pompano Beach

Ken Eisenband
(561) 350-3365

Located in one of the most desired locations in Cobb County, Georgia this Hot Concept franchise for sale has buyers ready to find out everything! This Franchise for sale opportunity in booming Kennesaw Georgia is priced at a steal!  It's only $75,000 and sure to roll off the market with a buyer soon!

Listing ID:5303 Restaurant Broker Robin Gagnon    
Franchise for Sale in Booming Kennesaw - Cobb County - Georgia
Lease: 2 years remaining plus a 5 year option to renew
Monthly Rent: $1900.00
Inside Sq. Ft. 1000
Outside Sq. Ft.
Price:$75,000
City:Kennesaw

Robin Gagnon
(404) 800-6700

The month of February is know to be the month of love. Our buyers sure loved the opportunity to find out more about these top 10 restaurant for sale listings. These business opportunities are from all parts of the country which shows buyers are everywhere! D

Ready to take a look at some of the latest offerings?  Click this link for the latest listings online.

Check Available Listings

Ready to Sell? We have buyers ready!

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Topics: buying restaurant, sell a restaurant, selling a restaurant, buy a restaurant

Latest Franchise Restaurant Sales and Deals Announced by the Industry

Posted by Robin Gagnon on Mar 1, 2017 10:15:22 AM

Franchising continues to grow and much of this is fueled by restaurants.  The IFA (International Franchise Association) recently reported that they expect Arizona, Utah, Nevada, Colorado and Florida to be the largest growth states this year.  Does that play out in actual openings?  We looked high and low for the latest franchise restaurants opening around the country from published reports and here's what we found by region.   Looks like the IFA may be onto something!  They did leave Georgia off the list where we're are seeing business pop.  Restaurant Broker Robin Gagnon noted that "Franchise deals are moving quickly along with the entire market right now."  Here's the latest franchise restaurant sales and deals we found by region. 

Franchise Deals.jpg

Southern Bound Brands!  

Halal Guys opened January 28 in red-and-yellow building on the corner of Chamblee Tucker Road and Buford Highway in Chamblee in Atlanta, GA.

Two Huddle House restaurants are opening.  The first in Jackson is planned this year while the second one in Forsyth, Georgia, is scheduled to open in 2018.The Jackson location will be Huddle House's 100th restaurant open and under development in Georgia

Atlanta-based GPS Hospitality, a rapidly growing franchisee group, said it will expand into five new states with the acquisition of 194 Burger King restaurants.  The stores are located in Louisiana, Mississippi, Alabama, Arkansas and Florida. Approimatley  30-40 stores each year going forward are going to be getting a remodel.

MOD Pizza announces its ninth franchise partner – Southern Pie, LLC – who will develop MOD stores in Georgia and Alabama. MOD has over 195 locations in 20 states including Arizona, California, Colorado, Idaho, Illinois, Kansas, Kentucky, Maryland, Michigan, Missouri, New Jersey, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Texas, Virginia, Washington and Wisconsin, as well as five locations in the UK.

An existing franchisee of Tropical Smoothie Cafe - Glen Johnson has inked a deal for 20 more stores in Texas.  He has already opened the first one -- Lubbock.  Johnson is the president of Rockland Ventures.  He currently has 22 open locations in Arkansas, Oklahoma and Texas. 

Uncle Maddio's Pizza signed Linda Zamboni, the former director of operations, franchise consultant and franchisee for McDonald's to open five units of the fast-casual pizza chain in the St. Petersburg/Clearwater area of Florida over the next five years. 

Sonny's BBQ sold nine of its 10 company-owned locations. Six of the stores are in the Orlando area and three in Gainesville.

Cheddar's Scratch Kitchen has acquired 44 restaurants. Franchised units involved are in Kentucky, Tennessee, West Virginia, Ohio, Indiana, North Carolina and Virginia. Cheddar's, which now owns 139 of its 164 locations

Little Rock, Arkansas is in the news again.  This time, Potbelly Sandwich Shop is opening a store there this spring. 

Jacqueline Mansfield of Miami, Florida has signed an 18 unit development deal with CoreLife Eatery.  Mansfield plans to open at least three CoreLife restaurants this year, the first to open in May in Florence, Kentucky. The next unit will be in The Summit at Fritz Farm, a premier retail facility located in Lexington. The third to open will be in Centerville, Ohio, a suburb of Dayton, in front of the new Costco. 

Western Bound

Despite the high costs of development often cited by these restaurant brokers, California continues to attract those opening new franchise restaurants.  Broken Yolk Café, a breakfast and lunch concept with large portions, is slated to open the second quarter of 2017 in the city of Corona.  Del Tacos just opened in Clovis and Fresno, California and fast-casual seafood concept Slapfish finalized a franchise agreement to build five locations in the San Diego area.

In other western states, franchise restaurants are opening.  Phoenix's Pizza LLC are opening the first full-service Godfather's Pizza, in South Jordan, Utah, 17-miles south of downtown Salt Lake City. This is the first restaurant in the couple's multi-unit franchise agreement with the pizza chain.

Arizona-based, Grabbagreen® is opened a second location in the Denver Metro area on Friday, January 20.  .

Forget the U.S. -- these are International deals recently announced.  

Yogurtland, announced its continuing international expansion with the opening of its first location in Singapore.  Hooters just announced the opening of a new international location in Managua, Nicaragua.   The Pie Hole is launching its first international franchise location in Tokyo. The Tokyo store is located just steps from the busiest train station in the world, Shinkjuku station in LUMINE Shinjuku. This is the first Pie Hole unit of 10 slated for Japan.  

Boston's Restaurant & Sports Bar is heading south of the border with an eight-unit deal in Mexico. The new locations will join the 13 existing Boston's in Mexico, and will be owned by seasoned hospitality group Desarrollos Juventud. The group is targeting areas of Torreón, Saltillo, Tijuana, Mexicali, Hermosillo, León, San Luis Potosi and Aguascalientes for restaurant development.

Topics: buying a restaurant, selling a restaurant

Franchise Restaurants On the Rise - Sector Expected to grow by $36 Billion This Year

Posted by Robin Gagnon on Feb 24, 2017 10:00:00 AM

The numbers are in and they are impressive.  The International Franchise Association has released its annual Franchise Business Economic Outlook for 2017.  The entire franchise sector is expected to grow by $36 billion in 2017, led by restaurants.. 

The group says the growth will be fueled by business and job additions, led by continued strong performance by the industry that uses the model most: Restaurants.  The report, released early in 2017 says output by franchise businesses is expected to grow to $710 billion in 2017, up from $674 billion or 5.3 percent in 2016, good news for the restaurant brokers.

HIS Markit Economics did the study for the IFA.  They suggest that the franchise sector will grow at a faster rate than the overall economy.  The report forecasts a number of factors including:dollar-544956_1280.jpg

  • Count of franchise establishments: Expected to increase by 1.6 percent to 744,437 locations.
  • Job Growth: Expected to provide nearly 7.9 million jobs, up 3.3 percent from 2016.
  • Gross Domestic Product: The franchise sector is expected to have a gross domestic product of $426 billion, up $21 billion or 5.2 percent from 2016.

The lion’s share of the forecast growth for 2017 will occur in the franchise restaurant industry.  Restaurants are the largest share of the franchise business with unit counts by large chains like Subway and McDonald’s driving this position as well as restaurant chains using franchising as their means to growth.

Eric Gagnon, President of We Sell Restaurants is not surprised by the report saying, “We have seen franchise restaurant sales continue to grow in all categories of service.  We expect 2017 to be a record breaking year as more stores come online and turn over.”

The report anticipates the highest growth to originate in full-service restaurants, where employment is expected to grow by 3.9 percent in 2017 and output is expected to grow by 6.8 percent, to $67.5 billion.

Quick-service restaurants, the highest turnover category for the restaurant brokers is expected to employ more than three times any other business sector that commonly uses franchising. The number of quick-service workers is expected to grow 4 percent in 2017 to 3.6 million. And output by quick-service restaurants is expected to grow by 6.7 percent to $237.6 billion.

Combined, quick- and full-service restaurants represent nearly 59 percent of the 7.9 million people that franchises are projected to employ in 2017. They are expected to represent 43 percent of franchise businesses’ total projected output for the year.

“Franchising is an American success story,” IFA president and CEO Robert Cresanti said of the results.  The Restaurant Brokers at We Sell Restaurant agree.  The firm not only resells franchise restaurants but is also franchising their concept nationwide in response to the increased demand.  Their goal is to sell more restaurants than anyone else. PERIOD.

 

Topics: buying a restaurant

We Sell Restaurants Broward County Selling Restaurants

Posted by Robin Gagnon on Feb 21, 2017 11:13:45 AM

46576-Ken_Eisenband.jpgWe Sell Restaurants, a unique restaurant brokerage franchise dedicated to selling more restaurants than anyone else, announces their latest success in the Broward County market. The new 2017 year is off to a great start and the Restaurant Brokers of Broward County have set the future bar high with five SOLD restaurants.

“We continue to move forward and increase the number of restaurants sold. Growth is always a positive no matter what time of year it is,” says Franchise Partner, Ken Eisenband. He acted as the buyer and seller agent in three transactions including Boca Raton’s Fresh Bites Café.  This café has been serving the community since 2011 and was owned by the seller since 2013. The growth of the fresh menu attracted new clients as well as a satisfied new owner Selen Balca. The Seller has great things to say indicating Ken was “Professional and hard-working” providing “diligent service.”

For the sale of Sunshine Bagel and Bistro located in Pompano Beach, Florida, Ken Eisenband acted as agent for both the buyer and seller. This restaurant was sold in less than 100 days.  The buyer Levent Topcuoglu is taking over from seller Alessandro Bove.  Both are ready to start their new careers.

Located in Pampano Beach, Topher’s Table was only on the market for 42 days before Certified Restaurant Broker Ken Esienband was able to help seller Chris Frank with a sale.  The buyer Jason Jiang plans a change of concept at this location. 

Broward County Franchise Agent and Certified Restaurant Broker Ken Allain sold two different Pizza Rustica locations in the month of January.  This two stores were sold to separate buyers.   Pizza Rustica in Fort Lauderdale Florida, an award winning gourmet pizza franchise was sold to Olga Cherkasova.  The Hollywood Florida location was sold to August Bifani.   

Eric Gagnon, President of the We Sell Restaurants brand said of Ken’s success.  “We are very excited to see so many units changing hands in Broward County under the leadership of our franchisee in that market. We believe 2017 overall will be a very strong year for the sale of restaurants as more small business owners show optimism about the economy and the stock market is at record highs.”

We Sell Restaurants is the nation’s largest restaurant brokerage firm.  The company began franchising in 2012 in response to strong industry demand. The firm applies a branded systemic process and proprietary web platform to a previously highly fractured industry of sole practitioners. We Sell Restaurants continues to increase the number of SOLD restaurants in keeping with their vision to sell more restaurants than anyone else. 

More information about the brandingselling more restaurants than anyone else can be found online at this link. 

Topics: selling a restaurant

Restaurant Sales in a Trump Economy -- What's the Impact?

Posted by Robin Gagnon on Feb 16, 2017 8:24:51 AM

The new White House is making a number of changes that affect the restaurant industry.  What will this mean to restaurant sales?  Here are key areas where the restaurant brokers see impact for the industry.   

President Trump2.jpgNew Labor Secretary was In and now he's Out

If you haven't been living under a rock, you've heard that Andy Puzder, the CEO of CKE Restaurants was nominated to the Trump cabinet as Labor Secretary.  As of yesterday, that nomination was withdrawn.  That's a shame since having someone from the industry was seen as a win for those of us in the restaurant business.   

At a recent apeparance at the Restaurant Finance & Development Conference Puzder told the crowd, “We have a government-mandated restaurant recession."  He went on to say, “The government did not intend this result. But it shows what happens when government tries to manipulate the economy. You cannot mandate the benefits of economic growth without actual growth.”

The overall concensus from the industry was that his nomination was a powerful one and most were cheering the decision to bring him onto the cabinet.  Now we'll take a "wait and see" approach to see what background the next nominee has and hope that will bring good news for restaurant sales.  There are several "hot button" restaurant issues in the pipeline for this administration including:  joint employer issues for franchisors, minimum wage laws and of course, Obamacare. 

Supreme Court Pick 

President Donald Trump recently nominated Judge Neil Gorsuch to fill the vacant seat on the U.S. Supreme Court.  If approved, Gorsuch, who has served on the U.S. Court of Appeals for the 10th Circuit since 2006, would replace Justice Antonin Scalia, who died in February 2016.  

The nomination was applauded by the National Restaurant Association, which recently asked the Supreme Court to hear a challenge to existing laws that prevent cooks and dishwashers from sharing in tip pools. 

Angelo Amador, executive director of the NRA’s Restaurant Law Center, described Gorsuch as “an experienced and knowledgeable judge who had extensive bipartisan support when he was confirmed to the 10th Circuit unanimously. We look forward to again having a full bench in the U.S. Supreme Court to decide cases of critical importance to our industry and the economy in general.”

Hospitality attorneys see the choice of Gorsuch, if confirmed by the Senate, as generally positive for employers. Since this pick is pending approval by the House and Senate, we'll sit back and see if he's able to make it through an increasingly divided Washington.

Corporate Tax Rate

All signs point to reduced corporate taxes under President Trump.  If he keeps his word on this promise, which was reiterated last week, we could be looking at serious growth in bottom lines for corporations which are mostly, small businesses like your local restaurant owner.  The stock market has moved into uncharted territories on the strength of this committment from the commander in chief.  With more money in the pockets of Americans, we are sure to see higher restaurant sales.

Immigration

Those fighting the new administration and its resolve to protect the borders are trying to bring the fight direct to the restaurant scene.  Today there is a nationwide "sick out" called for with illegals failing to come to work aimed at closing the doors of restaurants.  There are several celebrity chefs who are voluntarily shuttering today in solidarity (Rick Bayless for example).  This hot button issue seems to have reached a fevered pitch for a President most Americans elected based on a law and order approach.  The complextities of this one and its ultimate affect on restaurant sales is yet to be seen.

Obamacare

President Trump has already advised the IRS not to levy the Obama Care imposed $2500 fines against those filing 2016 returns that don't include health insurance.  The Congress will be addressing a repeal (according to some) or a revision (according to others). Either way, the industry is in critical need of a new look at legislation that brought tremendous new costs onto their books and into the households of most Americans over the course of its implementation. 

Small Business Optimism

Optimism on Main Street has soared in the President Trump's election.  The National Federation of Independent Business' survey said small-business sentiment for December hit its highest level since 2004.  That was an increase of 7.4 points in December to 105.8, up from November's 98.4. That was the largest month-over-month index change since it began in 1986.

How will the same index look today?  That's an unknown with President Trump facing an intrangient Democratic party and collusion among some long time government employees and hold-overs from the Obama administration.  Let's hope the good news from this report continues since members' perceptions were that business conditions would improve and that accounted for 48 percent of the month's increase.

What about restaurant sales?  The same survey said sales expectations also increased by 20 percentage points, as did the percentage of owners who believe now is a good time to expand, which is up 12 points.  The National Restaurant Association also reported optimism in December's Restaurant Performance Index. The industry expanded in December, albeit at a slower rate than in November. The association said that the index, a monthly measure of the state of the industry, closed out 2016 at 100.5, down slightly from 100.7 in November.  The association considers the industry to be in expansion mode when the index reaches above 100.

Operators are also “cautiously optimistic” about business conditions, with 33 percent saying they expect conditions to improve in the next six months. Only 15 percent expect conditions to worsen.

Restaurant Sales

What will restaurant sales look like under a Trump economy?  We have to see how much of his agenda is actually permitted to proceed and if he can truly get through the impasse being created in Washington.  It's clear that America sent him to Washington to make changes to the status quo.  At only three weeks in office (really just three weeks?), heads are spinning from his attempt to move forward on an aggressive agenda that includes all these points affecting restaurant sales.

All of these items will have implications for buying and selling a restaurant but if January and early February are any indication, the number of buyers in the market ready to get into the business are hitting record numbers and transaction counts for restaurants sold will hit record heights.  The restaurant brokers are setting new records with transactions for this year more than 65% ahead of last year.

Topics: buying a restaurant, selling a restaurant

Valentine Love Translates to Restaurant Sales - Where are You Dining?

Posted by Robin Gagnon on Feb 14, 2017 7:19:00 AM

 

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More than half of all Americans (54.8%) plan to celebrate Valentine's Day this year and they will rack up an amazing $19.8 Billion (with a B!!) dollars in spending according to the National Retail Federation.  It's no wonder that restaurant sales will also see a sweet amount of business that day! 

It's the second most popular holiday for dining out behind Mother's Day.  Who doesn't think of Valentine's Day as a candlelit dinner event?  The National Restaurant Association estimates that roughly 25% of us will dine out on Valentine's Day and I can assure you these restaurant brokers will be part of the crowd.   

When choosing a Valentine's gift, it looks like food is truly the way to a man or woman's heart.  Forget the age old claim that diamonds are a girl's best friend.  When the National Restaurant Association surveyed individuals to ask what their love interest should give them for Valentines, nearly a third of those surveyed by the National Restaurant Association said they want restaurant gift card.  That was followed by the traditional standbys -- jewelry, cloths, flowers, chocolate and perfume.  

Where's everyone eating?  Remember, the restaurant brokers said it's all about the candlelight dinner and those surveyed agree.  They told the National Restaurant Association they want pick their companion’s favorite restaurant follwed by 20% who choose a restaurant for a romantic atmosphere.  

Valentine's is not a holiday where promotions are top of mind.  Those responding to this national survey say their last choice is a restaurant offering special menus or promotions, restaurants picked by their companion, or a restaurant they haven’t been to before.

Each city has their own best Valentine's Day dining options.  If you want to check out what the experts are saying, Gayot has produced a city by city peek at the best Restuarants for Valentine's Day at this link and they are listed by city.  In Atlanta, where We Sell Restaurants launched their brand, we see a lot of our favorites on the list.  Gayot begins with Babette's Cafe at 573 N. Highland Ave, NE in Midtown.  Cafe Alsace in Decatur (121 E. Ponce de Leon Ave.) is second on the list.  La Grotta at Peachtree House Condominium (2637 Peachtree Rd. NE) also makes the list.  Intimate dining for romance-bent couples or small groups of friends are both possible in the former Quinones at Bacchanalia space at Star Provision (1198 Howell Mill Rd. NW) on the westside makes the cut along with Ray's on the River at 6700 Powers Ferry Rd. NW.  Ray's will also top the best brunch choices for Mother's Day and the restaurant brokers have enjoyed this one many times. The last restaurant in the Gayot top ten best restaurants for Valentine's Day is Restaurant Eugene at 2277 Peachtree Rd. NE.  What's your favorite romantic restaurant?  

As a restaurant owner how do you prepare for the busy holiday? It all starts with planning. Plan early with your team and brainstorm ideas. Established timeline and schedules that will have everyone on tract for the second busiest day of the year. Along with planning comes communication. They only way a team can be well prepared is to be looped in to what the plans are. Set expectations up to and including the busy day. Menu prep is another hard decision that needs to be made. Are there select dishes, special pricing, limited availability? As part of the planning make sure that add to the calendar when a food order should be placed for any special holiday items. Of course don't forget to market your holiday specials. Valentine's Day tends to be busy a week up to the actual day with approximately 30% more guest. Most people tend to plan last minute for Valentine's Day so focusing on a shorter marketing strategy can pay off big.

You may accommodate to those that have been there time and time again. Sell a gift card for a future romantic visit. Have those once a year specials could draw new or repeat clients in. If everything is planned, prepped, announced and marketed correctly the results can be a restaurant earning of 3 times.

 

Topics: selling a restaurant