Advice for Buying a Restaurant and Selling a Restaurant

The Restaurant Brokers Reflect on a Year of Giving Back in 2017.

Posted by Robin Gagnon on Jan 3, 2018 12:28:15 PM

1-4319039364397.jpgNothing feels as good as being able to lend a hand to those in need and give back to the causes that we hold near and dear to our hearts. We Sell Restaurants has welcomed 2018 with open arms and are excited to see what this new year brings. We are also taking some time to reflect on how the We Sell Restaurants charitable foundation was able to support causes important to us in 2017.  

In October the Restaurant Brokers rolled up their sleeves and lent their hands to the Atlanta Community Food Bank. Our team sorted and packed food for those less fortunate throughout the Atlanta Metro. The Atlanta Community Food Bank receives donations to the tune of more than 60 million pounds of food per year. In addition to volunteering our man hours, the We Sell Restaurants Charitable Foundation gave $1,500 to this all important cause.

The next organization that we gave to in 2017 gave us so much as well – man’s best friend! Adopt a Golden Atlanta has rescued nearly 4,000 dogs since its inception and is the fourth largest Golden Retriever rescue in the United States. This organization takes in Golden Retrievers and performs any necessary medical procedures and behavior training, and finally adopts these loving dogs out to their forever homes. We contributed $2,500 to Adopt a Golden Atlanta, and the average cost for this organization to rescue and rehome one dog is nearly $2,000! Did we mention that the We Sell Restaurants office dog, Major came from this organization? We couldn’t have asked for a better dog from a better cause!

The Honor Foundation’s focus is to provide professional advancement education for United States Special Operations members and Navy SEALs during their service and after they have served. This is a highly selective organization that the Restaurant Brokers proudly donated $5,000 to during 2017. Not limiting our giving to the armed forces, we also donated to first responders - The Firehouse Subs Public Safety Foundation. This foundation uses a portion of all subs purchased at their locations across the country to provide lifesaving equipment to first responders. Since its inception this foundation has given more than $31 million to support these heroes!

Who doesn’t love a good PB&J?  The Restaurant Brokers surely do, and that’s why our Foundation also send $3500 to the Which Wich Project PB&J last year. Not familiar with this cause? It’s a great concept! Purchase a PB&J and enjoy it yourself or gift it to someone else. For each PB&J you purchase, Which Wich donates one to an organization that provides meals to those less fortunate, and keeps one in a “bank.” Those that are “banked” are then prepared and donated around the world during times of need, such as natural disasters. What an awesome concept!

Not only to the Restaurant Brokers facilitate the buying and selling of franchise restaurants for sale, we also franchise our brand! We are proud members of the International Franchise Association. The International Franchise Association put a huge focus on this past November’s Giving Tuesday, and the Restaurant Brokers didn’t miss a beat! The We Sell Restaurants Charitable Foundation matched gifts on Giving Tuesday that went towards supporting veterans, minorities, and the next generation of franchise partners!

Our corporate headquarters is in beautiful Flagler Beach, Florida. Located centrally between historic St. Augustine and the world-famous Daytona Beach, the six mile stretch of beach provides unmatched views of the Atlantic Ocean. The Restaurant Brokers gave back to their local community with a donation to the Flagler Educational Foundation, a non-profit dedicated to collecting donations and generating awareness to education within the community. This foundation provides a plethora of resources to the community including teacher grants, clothing to students and their families in times of need, and inspiration for young authors to write and publish their creations!

What a great year for giving 2017 was! We can’t wait to see how and where we give back in 2018. Do you have a favorite place to volunteer or cause that you don’t miss donating to each year? Share them with us in the comments, and never stop asking yourself what you can do to make the world and your community a better place through giving!

Topics: buying a restaurant, selling a restaurant

Another Firehouse Subs franchise for sale is now Sold in Louisville, Kentucky

Posted by Robin Gagnon on Dec 28, 2017 10:00:00 AM

Restaurant Brokers Robin Gagnon and Dominique Maddox know a thing or two about how to get a franchise for sale sold!  The two recently partnered on this transaction.  Their latest  Firehouse Subs franchise for sale listing is now under new ownership in Louisville, Kentucky. This unit was officially off the market on December 1, a great way for all parties involved to kick off the month!

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The seller, Jeff Taylor is a full-time fire fighter who opened this Firehouse Subs franchise for sale location with his wife in 2015.  After two years of successful operation, the Taylor’s decided they were ready to retire. They proceeded to list their Firehouse franchise for sale on their own, and shortly after Dominique contacted them and offered his service and experience to sell their restaurant.  Two months after the Taylors listed their franchise for sale with We Sell Restaurants, they were presented with a purchase agreement.

This franchise for sale garnered the attention of nearly two dozen interested parties.  When all was said and done, the buyer who ended up taking this franchise for sale off of the market was Rahul Lohar who was represented by Restaurant Broker Robin Gagnon.  Before Lohar could officially take the reins as the new owner operator he had to complete seven weeks of training in a Firehouse restaurant, and another week of training at the Firehouse headquarters in Jacksonville, Florida. After his extensive training, he was all set to take over his recently purchased franchise for sale!

"Firehouse Subs franchise for sale opportunties are very popular listings," says restaurant broker Robin Gagnon, "a well-known brand with more than a thousand units, a proven concept and outstanding training; these are all reasons our restaurant buyers focus on these restaurants for sale."  Firehouse Subs opened its first location in 1994 in Jacksonville, Florida.  Founded by two former fire fighters almost 25 years ago the brand has grown into having nearly 1,100 restaurants across the country, as well as in Canada, Puerto Rico and Mexico. This award-winning company has a huge focus on community involvement and has donated over $24 million through its Firehouse Subs Public Safety Foundation since founding the charity in 2005.

Restaurant Broker Dominique Maddox is no stranger to getting a franchise for sale sold – this marked his seventh franchise transaction in 2017! If you are ready to list your franchise for sale, the Restaurant Brokers can provide a no obligation valuation along with counseling on how to get the best pricing and sell in the shortest period of time.  We Sell Restaurants can be found online at wesellrestaurants.com or by phone toll free at 1 888 814 8226.  Click here for a free valuation of your business.

If you’re interested in purchasing a franchise for sale, the restaurant brokers at We Sell Restaurants have over 300 listings across 42 states posted on our website, www.wesellrestaurants.com. We are posting new franchise for sale listings every day!

Topics: buying a restaurant, selling a restaurant

The Key to Selling Your Bar for Sale is Choosing the Right Listing Agent

Posted by Robin Gagnon on Dec 26, 2017 10:00:00 AM

 

Who should you use to list your bar for sale_.jpgNo two people are created equally and the same goes for listing agents. If you are interested in listing your bar for sale, here are a few specific types of agents to avoid and why.

If you want your bar for sale to sell (and what seller doesn't?), the key is to use a listing agent that specializes and has experience in restaurant sales. A specialized listing agent brings not only experience, but they also know the buyer qualification process and how to list your bar for sale at a price that will sell it quickly.

Like most bar for sale owners, you probably don’t want anyone other than potential buyers to know that you are selling – selecting the right agent that knows how to market your bar for sale in a way to protect the identity is the first key. Finally, you need to select an excellent negotiator when it comes time to close the deal on your bar for sale. A good agent is invaluable as they know how to steer the deal back on the straight and narrow when the road starts to get curvy.

Now that we have covered what type of professional you need to enlist the help of to list your bar for sale, let’s go over some of the people to avoid and why:

Residential Real Estate Agents – Some real estate agents put on a façade that they are business brokers. Be prepared to be approached by a real estate agent when you decide to list your bar for sale. If you choose a real estate agent to take on the task of listing your bar for sale, you are not just doing potential buyers a disservice, you are doing yourself a MAJOR disservice. Residential real estate agents are experts at valuing and marketing homes, not businesses, and especially not a bar for sale. If your best friend Jenni the real estate agent wants to sell your bar for sale, do yourself and Jenni a favor and kindly decline the offer.

Commercial Real Estate Agents – While a commercial real estate agent has a completely different level of knowledge than a residential agent, they still won’t be the your best bet for selling your bar for sale. While their knowledge of land value, investment properties, and leases is vast, they typically do not have the expertise to sell a business that is currently in operation. They will not know how to go about marketing your bar for sale when it comes to resources or ad composition. Most commercial real estate agents already have a LOT of listings on their plate, and while they will take on your bar for sale, they won’t give it the attention it needs to get it sold.

General Business Broker – A general business broker sells everything from gift shops to gas stations, and they may tell you that they have successfully listed many a bar for sale, but make sure you look at their listings to see what they are selling a bulk of. While a general business broker is a better choice than the previous two types of agents just covered, the bottom line is they are not a Restaurant Broker. It is crucial that you find someone with knowledge of the restaurant and bar industry to price your bar for sale. Only a Restaurant Broker can look at your profit and loss statement and immediately value your business.

When you decide to list your bar for sale, keep in mind that the Restaurant Broker is going to be the captain of your team. If your goal is to sell your bar for sale, don’t go with anything less than the best. The Restaurant Brokers are ready to talk to you about your bar for sale, contact us today at 404-800-6700. If you are a buyer in search of bar for sale listings, click the link below to see all of our bar for sale listings.

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Topics: buying a restaurant, selling a restaurant

5 Reasons Why Restaurant Sales Will Explode in 2018

Posted by Robin Gagnon on Dec 21, 2017 5:03:05 PM

As restaurant brokers, we study all the economic indicators and talk to both restaurant buyers and sellers to gauge the future of the business. Since last January, we have been bullish on restaurant sales and those predictions have all come to fruition with BizBuySell reporting that this year is on track for the highest recorded number of business sales and our own results showing the same trend.

What’s our outlook for 2018? We predict restaurant sales will explode in the first quarter and continue at record breaking pace all year.  Why you ask? Here are five reasons we will see people buying and selling restaurants in numbers we haven’t seen in years. As one politician who famously coined this phrase says, “It’s the economy, stupid.”

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Reason 1

The Tax Bill which was approved by the House and Senate yesterday is already garnering massive support from the stock market and major businesses. This is the first major tax cut since President Reagan cut taxes in 1981 and 1984 

The first quarter of 2018 will be the first time Americans and corporations begin to see the real impact. We anticipate it will unleash pent up demand for those not in business, to get into business and establish a corporation with the 21 percent tax rate.

Reason 2

The Stock Market is booming with the current Dow Jones Industrial Average north of 24,000. There have been more than 50 daily records set in the past year and if yesterday’s results are any indication, the markets are very happy with the tax bill. With millions of working and middle-class Americans invested in the stock market through various retirement accounts, every announcement of a new record rings like a cash register in their hardworking ears. Some of those people are ready to buy businesses and will use their earnings to do so.

Reason 3

The Unemployment Rate in America today is just 4.1 percent, the lowest since 2000. Breaking this out by demographic, we’re seeing Latino Unemployment Hit Record Lows as well. The unemployment rate for Latinos is the lowest … ever … in the 45-year history of government tracking at 4.7 percent. At 7.3 percent, the black unemployment rate still needs to improve, but not since hitting 7 percent in 2000 have things looked this good, most especially after nearly two decades of double-digit unemployment.

Reason 4

Real Economic Growth is on the books. The third quarter of 2017 turned in an unexpectedly high growth rate of 3.3 percent despite two major hurricanes. Even though some are still saying it can’t be done, all indications (housing sales, retail sales) point to a fourth quarter edging toward the magic number of 4 percent. Put that in context with the historical performance. The United States went ten straight years without 3 percent growth in real Gross Domestic Product. These restaurant brokers are predicting that 4 percent is going to happen. There will be restaurant buyers who want to take the plunge while the economy is growing at this rate.

Reason 5

Soaring Economic Optimism no longer an ideal, it’s a reality based on the perception of today’s consumer. Don’t ask us. For the first time in more than a decade, a majority of Americans see our economy as “good or excellent.” A near record of 41 percent believe 2018 will see an even better economy and their home values rise; 42 percent believe their wages will increase. Perception is reality.

One article we read says, “Optimism in the American economy breeds investor confidence and consumer spending, which, in turn, drives all the creation and manufacturing and shipping of products needed to fill those needs, which, in turn, gives us Boom Times.

It’s absolutely true. “It’s the Economy, stupid.” That why these restaurant brokers are confident for these five reasons that restaurant sales will be unmatched in 2018.

Ready to list your restaurant? Click this link to sell your restaurant.

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Restaurant Franchises Growing!  The Restaurant Brokers Share the Latest Deals

Posted by Robin Gagnon on Dec 19, 2017 10:00:00 AM

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There are big things happening in the franchise world and restaurant franchises continue to announce new units.  The Restaurant Brokers have the scoop on the latest deals that have been inked not only across the country, but also internationally. Read on to find out about some of the developments being made around the globe as restaurant franchises grow.  .

The Juice and Smoothie World is Blending it Up Across the South and East

Tropical Smoothie Café just announced eight new stores in the pipeline with franchise industry staples Steve Milam and Smit Shah. Milam, a Wingstop franchisee veteran, will be opening three stores, the first being a Frisco location in 2018. Shah has operated Subway and Bahama Bucks stores in the past, and plans to start out with five stores within Dallas County and eventually expand to a total of 10 to 15 locations in the Dallas and Houston markets in the span of the next five years.

Nekter Juice Bar announced that it will be expanding to the East Coast market thanks a deal signed by Dr. Todd Engel. Engel, founder of the Engel Institute Dental Center and Engel Dental Center in Charlotte, North Carolina, will open 17 stores throughout the Carolinas within two years. While this is the biggest multi-unit deal Nekter has inked, they also have almost 70 other locations in the works across the country.

Last in the healthy eating market is news from Muscle Maker Grill, who has just announced that it will be developing 10 new stores in Kuwait. Currently, the fast-casual brand operates upwards of 50 stores across 12 states in the US. Muscle Maker Grill focuses on protein rich healthy menu options along with an extensive smoothie and juice menu.

Fast-Casual is NOT Slowing Down

Moving into the wonderful world of fast food franchises, we will kick it off with Hardee’s announcement to continue expanding throughout Indiana. Six new stores are planned to open under the ownership of Farooq Shah. Shah is the owner of Midwest First Star, Inc., which has 26 franchise restaurants being operating in Ohio and Indiana.

Big Sky Country better make way for Hwy 55 Burgers, Shakes and Fries. The brand has just made a deal with Tim and Brenda Jittu to expand into Montana, with five locations slated to open between now and 2027. The first location to open with be early next year in Helena.

Wayback Burgers in continuing to expand through Africa, with the first of eight new locations being their Casablanca, Morocca store that opened in November. This deal was made with business partners Youssef Elmrani and Moutie Benhamza who are moving along with their plans swiftly – they plan to have three more locations open within two years.

Dunkin' Donuts is making waves in the franchise development world again with even more plans to expand! This time around, Sacramento, California will be seeing the addition of nine new stores. Sacramentoians will have to wait at least a year for these delicious new developments to be open - the first is set to be finished sometime in 2019.

Full Service Restaurants are Filling up with Deals

Wings Etc. is continuing to make its way across Michigan. The brand is pushing forward with existing franchisees Robert and Gene Harrison who will be opening up nine more stores throughout the state. Wings Etc. currently operates 50 locations.

Everyone's favorite wing stop - Hooters has opened its first location in Barcelona, Spain and 14 more are in the pipeline to open in the country as well as Portugal within the next three years. Mexico will also see an increase in the wing chains presence as nine new stores are scheduled to open here as well!

Tony Roma’s recently announced that they have opened their first restaurant based in Asia. The newest location is in Dhaka, Bangladesh. Tony Roma’s is a widely-known steakhouse with more than 150 locations spanning six continents!

Broken Yolk Cafe will open 11 new locations after sealing the deals with some current and new franchisees. Three Broken Yolk Cafe's will open in the Houston area, and fans of this franchise can expect to see the first one open next month! Vegas will see four new locations with the first slated to open this coming summer. Finally, Orange County can expect four new stores! These new openings will bring the total number of Broken Yolk Cafe's across the country to 37.

Everyone Still Loves Pizza and Beer

Blast & Brew serves up piping hot pizzas and also gives guests the convenience of hand-pouring their own refreshing draft beer thanks to the self-pour beer wall! A new deal signed between them and Parish and Sunil Patel will bring three new stores to Phoenix over the next three years.

Thanks to a deal inked by Old Chicago Pizza & Taproom, nine states will be seeing new locations to get get a good old Chicago-style pie and wash it down with an ice cold brew. this deal will bring a whooping 24 new stores to states including Nevada, Georgia and Arizona.

And Now to Finish it Off with Dessert!

The frozen yogurt craze doesn't show any signs of slowing down, especially not after current Sweet Frog franchisee Patrick Beard decided to add to his count of stores! Timonium, Maryland residents can expect to see a brand new store pop up in the near future! Sweet Frog is a frozen yogurt giant with more than 340 location across 27 states as well as Egypt and the Dominican Republic.

That's a lot of new restaurant franchises in the works.  These are new stores planned or just opened.  Are you interested in an existing franchise for sale? The Restaurant Brokers have the restaurant franchises for sale you are looking for! Click the link below to be taken to our website search all of our franchises for sale, or give us a call at 404-800-6700.

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Topics: buying a restaurant, selling a restaurant

What Your Restaurant Wants for Christmas, According to a Restaurant Broker

Posted by Eric Gagnon on Dec 14, 2017 10:00:00 AM

This is the time of year where being thankful and giving to others takes center stage. As a Restaurant Broker for over 15 years, I have always believed that giving someone a restaurant for Christmas is an excellent idea, and I still believe that today. Unfortunately, it seems that I am the only one that believes in that theory, but hey, this is also the season for miracles, right?

Until my Christmas wish comes comes true ( can you hear me now, Santa?) I decided to ask your restaurant what it would like for Christmas.  Boy did I get an earful.  After several long discussions with your restaurant, here are the top 5 things it would like for Christmas from you or Santa, in no particular order:
  • Your Restaurant wants a makeover

When is the last time you invested in actual dining room or kitchen upgrades? It does not have to be all that expensive.  A fresh coat of paint can go a long way. You may able to make a community event out of it  Have a bigger budget?  Investing in new kitchen equipment can save you money in the long run, or increase speed in the back of the house. Maybe you can do both. 

  • Your Restaurant wants to be part of a winning team

A great location with a great decor package and good food is not enough anymore, you need to build a great team to make all of the above even better. Make it your goal to build and retain a team that will keep your customers coming back. By the way, your P&L will like this gift too.  

  • Your restaurant wants to be lean and mean

Everyone tends to get get a little more lenient when things are running well and the bank account is well above the minimum required to operate. This is no different than all of us who tend to overindulge druing the holidays and get a little more sloppy about our discipline. Make it a goal to get better in several aspects of your restaurant. Maybe it’s food cost, labor cost, increasing your sales, or simply to hit better margins by doing quarterly reviews of different expense categories. Whichever one it may be for you, now is the time to get started - it is never a good time to start this process when you are tight with money and forced to do something drastic.

  • Your restaurant wants a little brother or sister

WOW! This could be tricky! Have you ever thought about purchasing another unit? Whether you are looking at your next franchise unit or another concept that you have in mind, many things must be in order before creating that new child! Is your financial house in order?  Do you have the capital required? Do you have team member on the bench ready to step up? The answer here is not, "We will hire someone 30 days before opening." Are we building out first generation space, or are we looking for second generation, or can we buy someone else's location? 

  • Your restaurant wants to be around for a very long time

As an owner, manager, or investor in a restaurant, the greatest pleasure you can have is to see your restaurant grow and prosper. Unfortunately, unlike your human children, this one will require care, nurturing, guidance and ongoing leadership forever. Even if you are an owner operator you must surround yourself with trusted advisors to make all the right decisions. You make so many decisions in a day that even if you get 80 percent of them right, every day you still may fail in the long run. Surround yourself with people that will help you during the life of your restaurant, people like accountants, bankers, insurance agents, food purveyors, marketing geniuses, advertising executives, sales pros, coaches, mentors, peers, etc...

If you can give any or all of these things to your restaurant in the near future, your restaurant will thank you. How you ask? By rewarding you financially! Now is a good time to add your restaurant to you list of people who need your gifts this holiday season. Plus, it will keep you off the 2018 list of naughty restaurant owners (yes, the restaurants told me they are working on it for 2018).

Here's hoping everyone has a wonderful Christmas and great Holiday season, and remember, if you are looking for a restaurant for sale that you want to treat right all year long, click the link below. We have the hundreds of restaurant for sale listings for you to browse.

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Topics: buying a restaurant, selling a restaurant

We Sell Restaurants Brokers Named to Georgia Association of Business Brokers Million Dollar Club

Posted by Robin Gagnon on Dec 12, 2017 10:00:00 AM

Dominique Award Pic.jpgEach year the Georgia Association of Business Brokers (GABB) highlights members who have sold at least $1 million in listings during the year.  This year, Dominique Maddox joined We Sell Restaurants President, Eric Gagnon, in this prestigious group.  

Only eighteen members of the Georgia Association of Business Brokers (GABB) were named to the 2017 Million Dollar Clubs for helping to broker the sale of small-, medium-sized and large businesses worth more than $90 million in 2017.

GABB is a professional membership organization committed to professionalism in the business brokerage industry. GABB members relentlessly pursue professional development so they can render superior, ethical services for all customers and clients.

Dominique Maddox made his first appearance in the Million Dollar Club while Eric Gagnon made a repeat appearance in the multi-million dollar club.  

Dominique graduated from Morehouse College in 2004 with a BA in Business Management. He went into the residential real estate field and after two years he was convinced he was destined for another industry.  “I have always loved the restaurant industry, and if I hadn't received a football scholarship to Morehouse College, my backup plan was to attend culinary arts school and become a chef.”

In 2010, Dominique was able to merge his two passions and became a Certified Restaurant Broker with We Sell Restaurants.  The rest is history.  In Dominique's word, "I’m very lucky to have joined a firm that gave me a chance at age 29 in an industry where most brokers are over 50.”

Dominique describes his approach to work to his role simply saying, "Every day I work like I have nothing in contract.” He added, “I took my restaurant brokerage business very seriously this year and reviewed my goals and vision board regularly to stay on course.”  When Dominique isn’t busy as a rock star restaurant broker, he enjoys fitness, traveling and sightseeing, and most of all spending time with his wife and daughter. In January 2018 his daughter, Amaya will be launching her very own shirt company, Young Minds Brand, with the entrepreneurial guidance of her father. The 11-year-old will use the proceeds from her venture to actively contribute to her 529 plan for college, and eventually law school! Talk about a family of achievers!

Eric Gagnon was also named to the 2017 list of top producers as a member of the group performing Multi-Million dollar transactions.  The co-founder and President of We Sell Restaurants, he is the past President of the Georgia Association of Business Brokers and has received the GABB Lifetime Million Dollar Club Award as well as the prestigious GABB Phoenix award for a decade of achieving million dollar status.  Business Brokerage Press first designated Mr. Gagnon as an Industry Expert over a decade ago.  In addition to GABB, Eric is a member of the International Franchise Association (IFA), the International Business Brokers Association (IBBA) 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).  Eric is licensed as a broker in Georgia, South Carolina and Florida. 

For listings from these top producing brokers in the GABB, take a look online at the nation's largest website for restaurants for sale at the link below. 

Restaurants for Sale

 

Topics: restaurant broker, buying a restaurant, selling a restaurant

Tips on Buying a Bar for Sale – Evaluating Cash Flow

Posted by Robin Gagnon on Dec 8, 2017 9:32:46 AM

When the deal seems too good to be true, it probably is. A Restaurant Broker shares the secrets of paying the right price for earnings when you find a bar for sale.

An age-old struggle with how to set pricing on a “cash” business like a bar for sale is put to rest in this article. Expert restaurant brokers know that the only real way to value a bar for sale opportunity is based on earnings. Earnings are based on a profit and loss statement on the business and additions to earnings known as add backs to calculate Seller’s Discretionary Earnings. This method, known as the Income Valuation Approach doesn’t work when bar for sale listings states they have “cash earnings” they want to use in the valuation.Tips on buying a Bar for Sale.png

Cash earnings are generally not provable. They results when the seller avoids certain tax requirements and doesn’t report all of his sales and thus, his earnings. Some restaurant brokers promote these listings online and say things like “cash to be proven by seller.” Other restaurant brokers don’t take these listings or simply offer them as assets since they can’t be verified. Cash earnings are not the same as items “added back” to earnings to arrive at the owner benefit on a bar for sale. Anything that is customarily added back can be substantiated with documents during a period of review on the books and records. Here are some of the issues presented by “cash” businesses.

The first is valuation. A bar for sale advertised with earnings of $100,000 offers no way for a restaurant buyer to confirm that number. Since pricing is based on earnings, the restaurant broker that takes this number at face value will be overpricing the business. The only way the value would be correct is if the earnings were authenticated and the buyer kept the business the same when he took over the bar for sale. The other problem with the valuation is that seller is being asked to be paid twice for the same income. He’s already received a huge benefit since he’s avoided all the reasonable and customary taxes (state income tax, federal income tax and more). Now he wants to sell this bar at a premium.

Some buyers are willing to take the risk and decide they will just run on the up and up once they take over the bar for sale. There’s a problem with this approach. If you convert the cash earnings onto the books, you’re looking at an immediate hit to the earnings. The federal, state, and sales tax implications alone could drive the operation into a negative earning situation.

The larger problem for most however is one of transparency by the seller of the bar for sale. He has operated on a less than candid basis with his franchise (if he has one), the State Alcohol licensing authority, the state sales tax board and the Internal Revenue Service. It’s a bit of stretch to now believe he or she will be forthright with you at the point you are buying this bar. Outside of coming into the business as an employee or minority partner for a series of months, it’s impossible to establish the “real” earnings.

If you are a buyer that prefers a less risk adverse approach, than a bar for sale in with verifiable earnings is the answer. The pricing may not seem as good a “deal” as something advertised at a good price with “cash” earnings but the old adage that you get what you pay for holds true in this scenario. Pricing and earnings are not a game in the valuation of a restaurant or bar for sale. They are a simple math problem and they do have a right and wrong answer – whether you are buying a franchise restaurant or buying a bar or club.

Robin Gagnon is Co-Founder of We Sell Restaurants and www.wesellrestaurants.com. She holds an MBA in finance and frequently writes on the topics of restaurant sales, restaurant valuation, and financial topics surround the buying and selling or restaurants, clubs or bars.

Topics: buying a restaurant

This diner for sale in Royal Palm Beach Florida is Now Sold!

Posted by Robin Gagnon on Dec 6, 2017 10:00:00 AM

Royal Palm Beach’s Wild West Diner is no longer a diner for sale in Florida. The business was on the market for just over six months when it sold with the efforst of Certified Restaurant Broker Ken Eisenband.

The new owner, Larry Marble, found this diner for sale online and decided he would not miss out on the opportunity offered by the Restaurant Brokers.  Marble, aWild West Diner.jpg military veteran, is an existing operator.  He owns Pirate’s Well in Lake Park, Florida, and with the massive success he has had at that location, he decided to buy the Wild West diner for sale to convert into a second Pirate’s Well establishment. The sellers, Wild West Diner, LLC began the business in 2014, and due to health issues decided to list the diner for sale with the Restaurant Brokers.

What used to be a diner for sale has now been transformed into a bar and restaurant with menu items including lobster mac & cheese, wings, tasty burgers, pizza, tacos, steaks, chicken and seafood. The Wild West Diner had patrons that loved their breakfast, so Marble didn’t change that when he completed the transformation – breakfast is served daily! Royal Palm Beach residents have nothing but great things to say about the transformation, here’s just a small sampling of the five-star rave reviews the new concept has already received:

  • “Food was great. Staff was right on top of things. Friendly and professional. Larry greeted his customers with a smile and made sure everything went smooth.”
  • “This place is one of the best establishments in royal palm beach. I highly recommend the crack wrap.”
  • “The food is so good at Pirates Well that we happily drive the 18 miles for breakfast. The staff is very efficient and friendly, there are plenty of TVs to watch your favorite sporting events, and lots of parking.”
  • “Food is awesome and the staff is my favorite of any local place!! They make you feel right at home!”

Restaurant Broker Ken Eisenband had this to say of the transaction: “The Wild West Diner for sale to Larry Marble went very smoothly due to both partie's professionalism. The seller kept accurate books and records, so requested due diligence material was easily presented. The buyer was well prepared and organized in his dealings with the landlord. It was a pleasure to work with everyone involved with this transaction”

Certified Restaurant Broker Ken Eisenband holds a brokers license in the state of Florida. He holds a BBA in Business Management from Morehouse College. Eisenband is a Certified Negotiation Expert and was the proud recipient the Dealmaker Award from the Business Brokers of Florida Association for two consecutive years. Ken currently is a multi-unit franchise partner with We Sell Restaurants in Broward County and Palm Beach County, Florida.

Are you in the market for a diner for sale like this? Click on the link to be taken to our diner for sale listings across the country, and check out all of the restaurants for sale online at the We Sell Restaurants website. 

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

Restaurants for Sale

Topics: buying a restaurant, selling a restaurant

The Restaurant Brokers Share the Top 10 Listings in November

Posted by Robin Gagnon on Dec 4, 2017 10:00:00 AM

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Topics: buying a restaurant, selling a restaurant