Advice for Buying a Restaurant and Selling a Restaurant

The We Sell Restaurants Checklist for Selling Your Restaurant

Posted by Robin Gagnon on Jan 21, 2019 2:47:18 PM

Selling your Restaurant may mean putting some materials together first.  Here’s a checklist of what most Restaurant Brokers will need to make sure you put your best foot forward!  There are limited buyers for the best restaurants for sale so be sure they get the best impression of your business.

It’s all in the name.  Selling your restaurant won’t happen without both the legal name of the selling entity and the business name (including the store number if it’s a franchise location).  Make sure your Restaurant Broker also knows what type of structure you operate your business under, whether it’s an LLC, C-corporation or Sole Proprietorship.  Expect an experienced broker to check the status of your legal entity with the Secretary of State before listing.  A corporation that’s defunct will keep a transaction from moving forward.

If you are selling your restaurant franchise, you have some extra items to pull together including:Checklist-1

  • Remaining number of years on the franchise agreement
  • Royalty percentage
  • Marketing Fee percentage
  • Transfer fee amount
  • Franchise training time period and understanding of whether this occurs before or after closing.
  • Date of any required refresh or remodel of the store and estimated cost.
  • Copy of the franchise agreement.

Do you have to tell your brand you are selling?  Most franchise agreements state that you provide a “right of first refusal” and notification to the brand prior to listing.  In reality, most owners skip this step until and unless it’s placed in contract. You should be clear on the process for transfer and understand who in the corporate office will assist in approving the new buyer.

Make sure the restaurant broker knows how to reach you including your cellphone, email address and any other information to provide up to the minute results on listing activity.

For the store itself, be prepared to provide information on employees (the number of full time and part time), a sample schedule and rates of pay.  For the business, buyers and restaurant brokers want to know the operating hours, how long it’s been established and how long you, as the seller have owned it.  They will also need to know the number of seats both inside the business as well as patio seating. 

Infrastructure is key to selling your restaurant and a key component of what you are transferring.  Make sure you understand the size of your hood and grease trap along with the age and condition of any heavy equipment like the HVAC system, coolers or freezers.

 Selling a restaurant may seem intrusive in some regards.  Buyers definitely want to know your reason for the sale.  Be prepared with a response on why you are selling your restaurant whether it’s burnout, retirement, relocation or simply a change in lifestyle.   

When it comes to the lease, buyers want to see a physical copy.  Either scan your original or ask your landlord for an electronic copy.  They will want to understand the escalations as well as any option years.  When quoting the rent, make sure you include Rent plus CAMS, taxes and insurance.  Your restaurant broker will also need contact information for your landlord as well.

It is critical that you provide up to date financial information when selling your restaurant.  Buyers are looking at the cash flow to make a purchase decision.  For lending, that means two years of tax returns plus the current year profit and loss statement.

Decide up front, when selling your restaurant, exactly what will transfer.  Will your famous cookie recipe be included or not?  What about the picture of your family over the fireplace?  If something is not included, pull it from the restaurant so you don’t have to explain that choice to buyers.

Lastly, do some local research and figure out key economic factors that make this a winning location or opportunity for someone one. 

Selling your restaurant is easy if you follow this simple checklist and provide your restaurant broker all the information he or she needs.  You can download our restaurant selling checklist at this link or contact us to sell your restaurant at this one.

 

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Topics: Selling a Restaurant

Restaurant Brokerage Firm We Sell Restaurants Expands to New Markets

Posted by Robin Gagnon on Jan 17, 2019 5:49:53 PM

Franchise Development Agreements signed to Expand Presence in Colorado & Wyoming

We Sell Restaurants, the nation’s leading restaurant brokerage franchise brand, announced today the expansion of its operations with new franchisees in Colorado and Wyoming.  This growth in the West is announced just a month after signing two other franchise development agreements for Charlotte North Carolina and Naples Florida.

A rise in franchise development is driven by the brand’s ongoing growth strategy and overall success in the industry.  This achievement, coupled with their proprietary software platform for business brokerage, the Broker’s Operations and Sales System or BOSS, has drawn experienced restaurant operators as well as those outside the industry, to join the growing company.

The expansion in Colorado and entry to Wyoming will be spearheaded by new franchisees Jeff and Tawnie Marcus.  They have signed an agreement to launch their location in Northern Colorado with Boulder as a base and extend their operations into Wyoming. The practice will launch in early February 2019.

The Marcus team has an unmatched passion for the restaurant industry and have owned and operated nearly a dozen restaurants since 1991. Their concepts ranged from breakfast and lunch and family diners to full service restaurants with complete bars, nightclubs and more. As owners of a family diner, they were awarded Marketers of the Year in 2007 for the National Independent Restaurant Association and were named "Best Casual" Restaurant every year from 2006 thru 2011.

jt smaller“We chose We Sell Restaurants since it complements our experience and knowledge.  We’ve owned, and operated restaurants and also worked alongside restaurants in the online ordering and delivery aspect. We can’t think of a better way to stay engaged in the industry than as a Restaurant Broker for a premiere firm.  We Sell Restaurants has solid systems, training and flexibility. We are also highly confident in the well-rounded background and cross-industry experience of the founders. We see Northern Colorado as a thriving and dynamic restaurant industry currently underserved from a niche, exclusively restaurant, business broker perspective.”

With more restaurants for sale across 42 states than any other firm in the country, We Sell Restaurants is the restaurant brokerage leader in America.  The company is currently seeking single and multi-unit operators to join in the brand’s rapid expansion. For more information about franchise opportunities, visit wsrfranchise.com or call 1 888-814-8226.

About We Sell Restaurants

Launched in Atlanta, Georgia, We Sell Restaurants has spread nationwide and sells restaurants in over 40 states.  We Sell Restaurants is the nation’s leading business brokerage firm focused solely on the restaurant industry.  Founded in 2001, We Sell Restaurants has been providing professional specialized services for the industry with a strong focus on franchise resales for almost 20 years.  We Sell Restaurants offers the only Certified Restaurant Broker training in the nation, resulting in experienced, knowledgeable brokers with unmatched closing ratios. For more information, please visit www.wesellrestaurants.com

Topics: Selling a Restaurant

Top 10 Restaurants for Sale in December of 2018

Posted by Robin Gagnon on Dec 28, 2018 2:32:42 PM

The year has ended with a bang and lots of activity on restaurants for sale online at We Sell Restaurants.  The market was extremely busy despite the holiday time period with overall web traffic nearly doubling over the prior year.  That makes our top ten restaurants for sale even more impressive.  These rose to the top of hundreds of listings making them the most popular of all those for sale. 

How do we measure the best of the best?  We look at the signed confidentiality agreements online as well as outreach to our Certified Restaurant Brokers from texts, phone calls and emails. 

The most activity was generated on two pizza franchises for sale in Alabama that are selling for literally, pennies on the dollar.  The build out for these two stores was close to a million dollars but the sellers hit a snag in their partnership and they are ready to sell at just $99,000 for two open and operating locations.  We have a number of buyers looking at this deal and doubt it will stay in play much longer. 

Listing ID:6415  
Two Pizza Franchises for Sale in Alabama! Phenomenal Pricing!
Lease: Both lease terms expire 2030
Monthly Rent: $7995 I 7400
Inside Sq. Ft. 2793 I 2597
Outside Sq. Ft.

Price:$99,000
City:Huntsville | Madison

Robin Gagnon
(404) 800-6700

The second most popular of our restaurants for sale this year was a cute cafe in Alpharetta Georgia.  The home run location generating sales of $55,000 per month is priced to move at $125,000.   Bring your offer on this cafe as it won't last at this pricing. 
Listing ID:6447  
Cafe for Sale in Alpharetta doing $55,000 a Month in Sales! Winner!
Lease: Valid thru 2022, plus 2 - 5-year options
Monthly Rent: $5500
Inside Sq. Ft. 2700
Outside Sq. Ft.

Price:$125,000
City:Alpharetta

Eric Gagnon
(404) 800-6704

 Florida nudged into the top of the list with the third most popular of our restaurants for sale this month.  The Fort Lauderdale beauty is fully equipped with everything you need for virtually any cuisine.  The monthly rent of just $2163 is also driving buyers as this market is seeing price increases.  Smart buyers are looking at existing locations where they can take over the lease rate. 
Listing ID:6480  
Restaurant for Sale in Fort Lauderdale is Fully Equipped & Priced to Move!
Lease: five year
Monthly Rent: $2163
Inside Sq. Ft. 1440
Outside Sq. Ft. 0

Price:$49,000
City:Fort Lauderdale

Ken Eisenband
(561) 350-3365

Fort Lauderdale was also the source of strong activity from the next of our restaurants for sale on the list.  A low price listing at under $85,000 with another remarkable rent number fed buyer activity, online acknowledgement of confidentiality agreements, texts to our agents and strong phone calls. 
Listing ID:6444  
Restaurant for Sale in Ft. Lauderdale, FL - Catering, Pick-Up and Delivery!
Lease: Expires on September 30, 2022 plus 5 year option
Monthly Rent: $1450
Inside Sq. Ft. 725
Outside Sq. Ft.

Price:$84,900
City:Fort Lauderdale

Ken Eisenband
(561) 350-3365

Rounding out the top five restaurants for sale was a metro Atlanta franchise doing more than $1.5 million in sales.  The seller owns the building and is ready to work with a new tenant on lease terms.  You can't get much better than that!  This location in Rome Georgia is 7,500 square feet and has demonstrated very strong interest for the month. 
Listing ID:6495  
Franchise for Sale in Atlanta Metro - Over $1.5 MM in Sales
Lease: Open End - Seller is the owner of building and business
Monthly Rent: $15000
Inside Sq. Ft. 7,500
Outside Sq. Ft.

Price:$99,000

City:Rome

Eric Gagnon
(404) 800-6704

Those in the market to do their own location are hitting the website hard judging by the interest in this restaurant space for lease in Roswell.  The lease terms are open to negotiation and the endcap location couldn't be better for establishing a fast casual concept in a booming trade area.  Just 1600 square feet, bring your concepts today and we'll help you negotiate a deal on this listing. 
Listing ID:5079  
Restaurant for Lease in Roswell GA
Lease: To Be Negotiated
Monthly Rent: $3492.00
Inside Sq. Ft. 1600
Outside Sq. Ft.

Price:$0
City:Roswell

Steve Weinbaum
(770) 714-4552

Colorado jumped into the mix with the next business in the top ten.  This donut shop was one of the most popular restaurants for sale - based on low cost of entry, low rent and an easy to run operation. 
Listing ID:6226   
Profitable Donut Shop for Sale In Colorado Springs is Priced to Sell!
Lease: 3 years left - landlord will extend.
Monthly Rent: $2037
Inside Sq. Ft. 1900
Outside Sq. Ft. 200

Price:$20,000
City:Colorado Springs

Bob Steinberger
(303) 901-4938

Colorado made the next most popular space on the list with this BBQ restaurant for sale.  The Denver landmark is represented by Restaurant Broker Chris Gordon who has seen his phone, email, and contacts spike over activity for this location. 
Listing ID:6294  
BBQ Restaurant For Sale in Colorado - a Denver Staple and Landmark!
Lease: 10 year + 10 year option
Monthly Rent: $15,000
Inside Sq. Ft. 6,000
Outside Sq. Ft. 750
Price:$400,000
Chris Gordon
(303) 594-4247
 Atlanta was back in the mix, barely, with a second franchise for sale location.  The mall based store generating strong sales of half a million has a long lease and is an easy to operate concept in a small footprint.  
Listing ID:6217   
Mall-Based Franchise for Sale in Atlanta - Annual sales of Half a Million
Lease: remainder of 12 year lease expiring 2030
Monthly Rent: $10,464
Inside Sq. Ft. 700
Outside Sq. Ft. n/a

Price:$149,000
City:Atlanta

Steve Weinbaum
(770) 714-4552

Last on the top ten restaurants for sale list was a breakfast and lunch restaurant in Miramar Florida.  An owner that's retiring combined with a strong lease and loyal clientele makes this location a winner among our customers. 
Listing ID:6477  
Breakfast and Lunch Restaurant for Sale in Miramar, FL - Owner Retiring
Lease: five years plus five year option
Monthly Rent: $3259.52
Inside Sq. Ft. 1300
Outside Sq. Ft.

Price:$75,000
City:Miramar

Ken Eisenband
(561) 350-3365

That's the winning list of restaurants for sale that beat out hundreds of others to land on the top ten for the month.  Many of these restaurants for sale will be gone by next month as inventory continues to see strong turnover and a rapid selling cycle. 

Want to see more restaurants for sale?  Visit our full inventory online at this link

 

Topics: Restaurants for Sale

5 Reasons January is the best month to Sell a Restaurant

Posted by Robin Gagnon on Dec 20, 2018 10:52:40 AM

Exactly why is January the best month to sell a restaurant?  For the nearly twenty years that We Sell Restaurants has been marketing businesses, the first of the year signals an uptick in buyer interest.  That means December is the best time to list your restaurant for sale.  Here’s why, in this Restaurant Broker’s opinion.

Reason 1 – It’s the Economy….

The economy, despite a recently announced rise in interest rates is still pumping out the strongest GDP (Gross Domestic Product) in years.  The real GDP growth in second quarter was 4.2 percent, something unseen in a5 Reasons January is the best month to Sell a Restaurant (1) decade.  With this economic news, combined with a strong labor market and record unemployment, those working a job feel comfortable taking a risk.  If they step outside their current corporate comfort zone and paycheck to buy a restaurant, the market is always good enough to return.  That gives them more security to take the chance on a new venture. That’s reason one that January will be a great month to sell a restaurant.  Buyers will be home over Christmas vacation studying opportunities that look more interesting than returning to work.  

Reason 2 – Restaurants are Worth more

Year end numbers are in and 2018 was much better for most restaurant sellers than 2017.  For that reason, the value of the restaurant you want to sell has increased over the prior year.  This is based on national results published by Black Box Intelligence data.  “Same-store sales were up 1 percent in November, which became the sixth consecutive month of positive sales growth for the industry. Excluding a very small dip in same-store sales during May, every month since March has posted positive same-store sales growth. This represents a period of expansion not experienced by the industry in over three years.”  When sales go up, earnings go up, particularly after a tough 2017.  If you want to know what your restaurant is worth in today’s market, now’s the time to find out.

Reason 3 – 401K plans are still worth more

Despite recent turmoil and sell-offs with issues around Fed Reserve hikes and more, the market is still good.  Even after the current sell-off, for instance, the S&P 500 through 12/10 close was up by nearly 15 percent since President Trump’s inauguration and more than 21 percent since Election Day 2016. This gives those in the market to buy a restaurant confidence that their nest egg is secure.  They can leave corporate America, leverage 20% down on a purchase and have money to return to if everything fails.  That’s the third reason January will still represent a high point in placing restaurants in contract.

Reason 4 – Lenders are Ready to Go

Lending is at a level unmatched in this Restaurant Broker’s history.  Multiple banks are making more than one offer on the same deal.  With rates inching up, based on the latest Federal Reserve hike, money is still cheap but more importantly, it is readily available. Someone in the market to sell a restaurant, no longer must worry about holding a note on the deal.  He or she can expect a payout, in most instances, at the closing table if the books and records are strong and sometimes, even when they aren’t. If you want to sell a restaurant today, be ready for the market to continue to be hot in January. Buyers only must bring between ten and twenty percent to the table to get a loan in today’s very favorable loan market.  The recent interest rate hike is meaningless overall in the hit to a payment but will make lenders even more anxious to close more deals and earn more interest on them.

Reason 5 – Because we said so....

We have been selling more restaurants than anyone else nationwide for nearly twenty years.  We have watched the cadence of the market through thick and thin, boom and bust. In all instances, we see buyers flock to the latest listings in January.  That creates a spike in our web traffic, more inquiries online and more deals placed in contract. 

Overall, if you’re in the market to sell a restaurant, now is the time to list the business, before January hits and buyers start looking at all the restaurants for sale.  Contact one of the Restaurant Brokers to learn more about the process or visit our listings online at this link.

Blog Byline Robin

Topics: Selling a Restaurant

We Sell Restaurants Leaders Named to Million Dollar Club -- GA Association of Business Brokers

Posted by Robin Gagnon on Dec 11, 2018 11:15:28 AM

Thirteen members of the Georgia Association of Business Brokers (GABB) were named to the 2018 Million Dollar Club for helping broker the sale of more than $71 million worth of small, medium and large businesses.  Eric and Robin Gagnon of We Sell Restaurants were among the handful of top producers for the group. 

GABB members represent owners of Georgia businesses in important and complicated transactions: the sale of their business. GABB members help owners determine the asking price of their business, create marketing plans and strategies for selling their business, identify and qualify buyers, and have the knowledge, experience and skills needed to help maintain the confidential nature of the process.

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Robin Gagnon was named a multi-million-dollar recipient.  ROBIN GAGNON is the Co-Founder of We Sell Restaurants and the firm’s Chief Marketing Officer.  One of the most prolific restaurant brokers in the industry and a franchise resale specialist, she holds the Certified Business Intermediary (CBI) designation from the International Business Brokers Association or IBBA and is an MBA.  She is a writer and speaker who has addressed many groups nationwide She co-authored Appetite for Acquisition,  the industry’s leading book on buying restaurants that received the prestigious “Best of ” award by Small Business Book Awards.  Robin is a member of the International Franchise Association and serves on the Women’s Franchise Committee at the national level. She is also the Chair of the Women’s Franchise Network – Atlanta Chapter.  Robin holds an undergraduate degree and an MBA where she graduated first in her class and was named “Outstanding MBA.” Robin is an emeritus member of the ASU Business Advisory Council. She is also a founding member of the ASU Entrepreneurship Board. Robin is a licensed real estate salesperson in both Georgia and Florida and member of the Georgia Association of Business Brokers (GABB), the International Business Brokers Association (IBBA) and the Business Brokers of Florida (BBF).  Robin, along with her husband Eric teach the nation’s only Certified Restaurant Broker curriculum training and testing agents in the practice of restaurant brokerage.

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Eric Gagnon is the President and founder of We Sell Restaurants and wesellrestaurants.com, ranked by Entrepreneur Magazine as the nation’s fifth largest business brokerage franchise and the largest focused on the restaurant industry.  An expert in restaurant sales and valuation, he is a frequent speaker, writer and radio personality for the industry.  Mr. Gagnon is the co-author of Appetite for Acquisition, an award-winning book on buying restaurants.  He is past President of the Georgia Association of Business Brokers, has been named to the GABB Million Dollar Club many times, has received the GABB Lifetime Million Dollar Club Award and received the prestigious GABB Phoenix award for a decade of reaching those milestones. Business Brokerage Press first designa

The Georgia Association of Business Brokers (GABB) is the state’s only professional organization dedicated to buying and selling businesses and franchises.  The GABB’s website t lists hundreds of businesses and franchises for sale throughout Georgia in a variety of fields, including automotive, business services, child care, cleaning, construction, electronics equipment, fitness, flooring, floral, food, gas stations, landscaping, manufacturing, medical, shipping, restaurants, retail, security, signs, and businesses related to the internet.ted Mr. Gagnon as an Industry Expert over a decade ago.  In addition to GABB, Eric is a member of the International Business Brokers Association (IBBA), the International Franchise Association (IFA), and the Southeast Franchise Forum (SEFF) where he serves on the Board of Directors.  He is also a member of the Business Brokers of Florida (BBF). Mr. Gagnon is licensed as a broker in Georgia, South Carolina and Florida.

Eric Gagnon of We Sell Restaurants said of the awards, “Today’s environment for buying and selling a restaurant or other business is competitive and requires strong attention to detail.  Using the services of an experienced and educated broker is key to navigating this task so parties on both side of the transaction walk away with a win.”

GABB broker members have represented thousands of business owners and buyers, and the group has a dedicated membership of lenders, attorneys and other professionals to assist business buyers and sellers at every step of the process.

For more information on We Sell Restaurants and their restaurant listings for sale, visit us online at Wesellrestaurants.com 

 

 

Topics: Buying a Restaurant

We Sell Restaurants Signs Franchise Development Agreements with Experienced Operators to Drive Growth in New Markets

Posted by Robin Gagnon on Dec 4, 2018 7:34:18 AM

Leading Restaurant Brokerage Brand to Open Locations in Charlotte and Expand Presence in Florida

We Sell Restaurants, the nation’s leading restaurant brokerage franchise brand,  announced today the signing of two franchise development agreements that will expand its footprint in key target markets throughout the Southeast.  This surge in franchise development reflects the brand’s growth strategy and is fueled by the ongoing success We Sell Restaurants has experienced over the past several years. This success, coupled with the continuous improvements on their proprietary platform, the Broker’s Operations and Sales System or BOSS, has attracted experienced multi-unit and single unit restaurant operators as well as those outside the industry, to join the growing brand.

As part of this development, We Sell Restaurants is entering the Charlotte, North Carolina market spearheaded by new franchisee Justin Scotto and his company, Carolina Restaurant Brokerage, LLC.  Scotto has signed an agreement to launch three locations throughout the region, specifically targeting Charlotte North Carolina, Rock Hill South Carolina and extending into the Carolinas over the coming years.  His operations are slated to begin in January of 2019.  Justin has extensive experience in the restaurant industry. He previously acted as a multi-unit developer of the FirehoJustin Scotto Photo 1use Subs franchise brand where he developed and operated as many as twelve units. As a Firehouse Subs multi-unit owner, Scotto served for seven years on the Firehouse Subs Board of Directors where he represented the views of franchisees nationwide. 

“As a multi-unit developer of a fast casual brand for the past 16 years I’ve gained a wealth of knowledge in the restaurant industry. This experience will help me relate to future buyers and sellers. I’m looking forward to transferring this knowledge to the We Sell Restaurants brand. I reviewed other similar brands, but We Sell Restaurants proved to be the best fit for me because of their commitment and success towards getting the job done for buyers and sellers in the restaurant brokerage market. “

We Sell Restaurants also signed a franchise development agreement with David Whitcomb, President of DDT Holdings, Inc. who will brinDave Whitcomb photog a new location to Naples, Florida in January of 2019.  Whitcomb has more than a decade of experience in the full service and quick service segments.  He has owned and operated his own restaurant, served as a Culinary Director for multiple locations, and has degrees in Food Service Management and Culinary Arts.    

“I chose We Sell Restaurants since it complements my experience and knowledge.  I’ve owned, and operated restaurants and I can’t think of a better way to stay engaged in the industry than as a Restaurant Broker for a premiere firm.  We Sell Restaurants has solid systems, training and flexibility. I am also highly confident in the well-rounded background and cross-industry experience of the founders. I see Naples as a thriving and dynamic restaurant industry currently underserved from a niche, exclusively restaurant, business broker perspective.”

Coupled with its ongoing management system innovation, We Sell Restaurants credits its strong alignment with the franchise industry and its resale focus with the brand’s ongoing strong performance. Franchisees of the We Sell Restaurants system strongly outperform their peers in the industry based on annual survey results published by Business Brokerage Press and BizBuySell.  The financial performance of their franchisees in their Item 19 disclosure at this link demonstrate strong six figure earnings in the first full year of operations.  For nearly 18 years, We Sell Restaurants has been the most innovative, technologically advanced and successful restaurant brokerage brand in the nation where they adhere to their mission to “Sell More Restaurants than Anyone Else. Period.”

With more restaurants for sale across 39 states than any other firm in the country, We Sell Restaurants is the restaurant brokerage leader in America.  The company is currently seeking single and multi-unit operators to join in the brand’s rapid expansion. For more information about franchise opportunities, visit wsrfranchise.com or call 1 888-814-8226.

About We Sell Restaurants

Launched in Atlanta, Georgia, We Sell Restaurants has spread nationwide and sells restaurants in nearly 40 states.  We Sell Restaurants is the nation’s leading business brokerage firm focused solely on the restaurant industry.  Founded in 2001, We Sell Restaurants has been providing professional specialized services for the industry with a strong focus on franchise resales for almost 20 years.  We Sell Restaurants offers the only Certified Restaurant Broker training in the nation, resulting in experienced, knowledgeable brokers with unmatched closing ratios. For more information, please visit www.wesellrestaurants.com

Contact:
Robin Gagnon
We Sell Restaurants
404-800-6700
robin@wesellrestaurants.com

 

 

Topics: Selling a Restaurant

Franchise Resales - We Sell Restaurants Covers the Steps from Start to Finish

Posted by Robin Gagnon on Nov 30, 2018 4:05:06 PM

Design Process

Topics: Selling a Restaurant

Black Friday Restaurants for Sale -- Unmatched Deals if You're Buying a Restaurants

Posted by Robin Gagnon on Nov 22, 2018 11:35:59 AM

From $100,000 off for the weekend to a discount of $350,000 on  multi-store group, We Sell Restaurants has never had better deals for buying a restaurant than the ones we're posting starting with Black Friday and ending, without fail, on Cyber Monday. We'll be publishing the deals one at a time for twelve hours on social media or our loyal blog readers can get a sneak peak at all twelve Black Friday Restaurant for Sale specials at this link.

Restaurant Savings (1)Our sellers are ready to get deals on the table before the year ends and they have offered incredible deals we have never seen before.  We reached out and asked if they wanted to be included in Black Friday specials and boy, were we surprised by the response.  Shhh..we haven't published to social media yet but here's a sneak peak.

Our seller of this Ohio pizza restaurant for sale said to blow it out the door and priced the business to move at just $39,0000.  We're not talking about a basic restaurant here.  This one is fully equipped, open and operating.  Ideal to flip to a different concept or keep the same.  This is an unmatched opportunity.

We have an Dairy Queen and Orange Julius restaurant for sale  opportunity in the western suburbs of Minneapolis priced at $115,000 and the seller will pay the closing costs if he gets a deal by Monday.  The earnings on this one are more than $50,000 per year so you're buying a just over two times earnings for a fantastic two-brand package.

One of our most unbelievable deals of the day is a 7-store package of franchise restaurants for sale in Denver Colorado.  The mile-high market is one of the most active nationally for fast casual brands and this is a national brand.  The entire group is reduced $350,000 (that's right - -not a typo), $350,000 off if an offer is received by Cyber-Monday AND the seller will pay closing costs.

Another deal in our Black Friday restaurant for sale lineup is a frozen yogurt franchise for sale in Raleigh, North Carolina.  Buyers become part of a franchise with almost 200 locations nationwide and adding more all the time. They have their own loyalty program powered by a fantastic rewards card and smart phone app guaranteed to have customers coming back again and again.

Two Firehouse Subs franchise restaurants for sale  in Pennsylvania come with a bonus on Black Friday in deals offered by We Sell Restaurants.  The seller will pay the closing costs if you bring an offer by Cyber-Monday.

Looking for big savings on the asking price?  How about a $50,000 price reduction on a Hungry Howie's Pizza Franchise for sale?  This open and operating location is generating good cash flow and is ready for a new owner in North Carolina where the seller is grossing over half a million in sales per year.

Colorado restaurants for sale are not going to be left out of the mix.  The listing agent has generated a "no closing costs" deal on two different pizza restaurants for sale.  One is priced to move at $125,000 and the other is just $99,000

Forget a stocking stuffer! You can get an Atlanta restaurant for sale for just $55,000 in this Black Friday deal offered by We Sell Restaurants.  Click this link for more details. This seller is ready to accept offers during the holiday weekend.

This is just a partial list of all the deals offered by We Sell Restaurants for Black Friday through Cyber Monday!  Don't miss out on these restaurant for sale deals all available at this link.

 

 

Topics: Restaurants for Sale

Buying a Restaurant?  Take this NFL Rookie’s Advice

Posted by Eric Gagnon on Nov 16, 2018 1:45:31 PM

Ever wished you could have gotten an extended trial period for something you bought BEFORE you made the commitment?  What about when you're buying a restaurant?

Dimgray Player Football Icons Photo Collage

For a lot of products, there’s no “drive before you buy” that lasts the length of time you need to discover the flaws.  Can you see yourself going to your local auto dealer and asking them to let you “demo” your dream vehicle for three months before you make the purchase?

Imagine this concept as it relates to your career.  Have you wondered what it would be like to “test” a new job before you resign from your current one?    

Is there a way to test drive the restaurant business?  There is. There are literally thousands of jobs available in the industry.  It’s always been our advice at We Sell Restaurants, that you should work in the industry before buying a restaurant. 

As restaurant brokers, we often see people investing hundreds of thousands of dollars in an industry where they have very little experience.  They buy, only to realize very quickly that this is not the right fit for them. They are now faced with potentially losing a substantial chunk of their initial investment.

What if that same person would have worked as an employee in a similar location before they made the purchase? With the labor pool tightening, restaurant owners are always looking for help.  Why not and go work for someone else on a part-time basis before you go out and spend a large amount of money?

If you are buying a franchise restaurant you are in luck as hopefully there are existing locations nearby to go and see what restaurant life all is about. (Hint:  It is not what you see on Food Network!)

You could even work for a potential competitor before you buy. Some franchisors require potential candidates to work in a store for up to six weeks store as part of the training process before buying a franchise restaurant.

Buying an independent restaurant location? The owner will probably not let you work there if he knows you are interested in purchasing his restaurant (AKA Undercover Boss).  You could go to work at one of the potential competitors or the best independent restaurant in town.  Try as many positions as you can from the front of the house to the back of the house.  Learn the POS system and try your hand at delivery. You will learn a great deal and cash a paycheck as well.  That sounds like a pretty good deal to me.

You think this is beneath you or unnecessary?  Look at this young man who made the headlines last week. 

Rookie Colts RB Nyheim Hines worked at a Bojangles over bye week due to his retirement plan

An NFL player is working at Bojangles’s during his week off.  He has a four-year, $3.18 million-dollar rookie paycheck coming in and he’s smart enough to learn the business before investing.  What’s stopping you from doing the same thing during your time off?

I know it’s a lot more fun to look on www.wesellrestaurants.com for restaurants for sale but spending time in real live stores will make you more successful in buying a restaurant.

You may decide once you look under the hood, that the restaurant business is not for you.  If so, you will save a huge amount of money and maybe even fatten your bank account while you’re at it.

You could learn that you have a natural affinity and talent for the industry and change your search from those making money to under performers that need a new look before flipping.  

If it’s good enough for an NFL player pulling down serious money, it seems like a good plan for you in buying a restaurant.

If you are interested in working somewhere before you buy, reach out to We Sell Restaurants.  We may be able to connect you with owners in your area.

 

Eric Gagnon blog footer

 

Topics: Buying a Restaurant

We Sell Restaurants says (Uber) is Eating up the competition

Posted by Hannah Eisenband on Nov 9, 2018 5:38:36 PM

Third-party food delivery services have created a billion-dollar industry that restaurants need to consider adding to their businesses. The movers and shakers in the food service delivery business include UberEATS, Postmates and Grub Hub.* These third-party delivery services are an innovative way of bringing restaurant food to customers. If a restaurant is looking to expand their current business and find new ways to generate revenue, these delivery services could be beneficial.

There are positives and negatives to using these delivery services.  If you are buying or selling a restaurant, you should be aware of these.  Benefits include increased sales, absence of delivery liability, labor costs, and free advertising for the restaurant. Disadvantages include high costs and the loss of control of your product. Ultimately, a restaurant must decide if the positive aspects of third-party delivery services outweigh the negative aspects.

Third-party delivery services have shown major growth. Third-party delivery services generated over 3 billion in sales in 2017 (Business Insider). According to CNet, there are over 100,000 restaurants partnering with UberEATS and that number is increasing daily.  Wired reports that UberEATS had a seven-fold increase in sales from 2016 to 2017, with hundreds of thousands of receipts processed through expense service Concur.Eating up the competition

When buying a restaurant, consider what these societal changes will mean to the business you are acquiring.  If you are selling a restaurant, you may consider adding on this volume to make the business more attractive while it is in the sales cycle.

When restaurants use third-party delivery services, they avoid liability and the labor costs of a hired delivery driver. The average commercial insurance cost per delivery vehicle can cost between $750 to $1,200 per year (How Much). By utilizing these different delivery services, a restaurant can avoid these fees. If a business has a delivery driver, they will be paying the driver by the hour, regardless of the number of orders they deliver. By using these applications, the restaurant will avoid any unneeded expenses.

UberEATS, Door Dash, Grub Hub, and the other food delivery systems have created a large marketing platform in their communities. Customers are drawn to these applications because of the large diversity of restaurants and the appeal of trying new restaurants they may not have had time to try. By being a part of these delivery applications, restaurants will receive name recognition. Once trying the restaurants through delivery, it could entice consumers to go into the restaurants in person after a positive delivery experience.

While there are many positive aspects of utilizing third-party delivery services, it is important to remember the drawbacks. Something that concerns all restaurant owners is the loss of margin. According to the New York Post, the service companies will take between 12 to 30 percent cut of the gross from each order. That does not include the $5 delivery fee to customers.  Before committing to a service, a restaurant must know exactly how much the delivery service company will charge. Then, review their Profit and Loss statement and analyze the impact it will have on their restaurant. It might be worth the service charge to add incremental sales that do not raise labor costs. If these sales come with increased labor cost it might not be worth it. Each situation must be analyzed individually.

A qualified restaurant broker will look at the impact of delivery on your profit and loss statement when working with you on buying or selling a restaurant.  Will the future margins be lowered by the impact of delivery sales? Will the net sales increase and if so, at what cost?

Another consideration for restaurant owners is related to quality control.  Once a delivery driver picks up the food, the restaurant loses control of what happens. A common fear is being the first pickup and the last delivery. This can lead customers to think poorly on the food and give a bad reflection to the restaurant. Additionally, although the delivery drivers were not hired by the restaurant, they represent the restaurant to the guest.

In my opinion, each restaurant should analyze their own operations and determine if third-party delivery services would be beneficial. While these services are free, they do come at a price.

Interested in looking at restaurants for sale featuring delivery models?  Visit our full inventory online at this link.

Hannah Eisenband blog footer

 

*Dependent on the region your restaurant is located

Topics: Buying a Restaurant