Advice for Buying a Restaurant and Selling 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

Franchise Restaurant Sales Announced Nationwide

Posted by Robin Gagnon on Oct 30, 2018 9:21:53 AM

Where are the latest franchise restaurant sales taking place and what are the new store openings planned in the industry?  We Sell Restaurants has been tracking the deals across the nation from press releases, announcements and online posts. 

We’ve assembled the latest openings here which includes everything from healthy food concepts to artery clogging Mac and Cheese. Pizza and pasta had a big month while both emerging concepts and well-established brands add a lot of units.  From emerging concepts to those that are well-established, these are the franchise restaurant sales you should know about.  We Sell Restaurants has scoured the press releases and online announcements to bring you the deals we've see hit this month.

Six new units of Tropical Smoothie Cafe are in the works with owners Kevin and Mike Couchman. They have signed a deal to develop the stores in Ohio and are starting in Columbus in the summer of 2019. The team currently operates 17 Jet’s Pizza franchise locations.

15 new Dunkin' Donuts units have been inked for development in Colorado along with three multi-brand stores with both the Dunkin/Baskin-Robbins brands. existing franchisee group Sizzling Donuts will develop seven Dunkin' locations around Denver, with the first slated to open in 2019.

  • A brand new franchisee group Avalanche Coffee, LLC signed a four-unit deal to bring three Dunkin' and one Dunkin'/Baskin-Robbins units to Evergreen and areas further west toward the Rocky Mountains.
  • Colorado Coffee Company, LLC, led by existing 'zee Josh Blanchard, signed a four-unit agreement to open Dunkin' stores throughout the Denver area.
  • Lastly, First Cup, LLC franchisee group has a two-unit agreement for one Dunkin' and one Dunkin'/Baskin-Robbins to open in Montrose and Grand Junction. Existing franchisee Douglas Redman signed for an additional Dunkin'/Baskin-Robbins location in Denver.

That's a lot of franchise activity for Colorado where it appears Dunkin Donuts is serious about expansion.

Dickey’s Barbecue Pit is heading north of the border.  The largest barbecue franchise in the world, announced they will expand into the Canadian market for the first time in late 2019, bringing Texas barbecue to 20 stores in Edmonton, Alberta, Calgary, Alberta, Regina, Saskatchewan and Saskatoon, Saskatchewan.  This is after opening their first international locations in Abu Dhabi recently.  In addition to expanding into Canada and across the Middle East, Dickey’s Barbecue Pit is opening six new locations in October across the U.S., including Hawaii for the first time.

I love MacI Heart Mac & Cheese, a fast-casual concept specializing in customizable, made-to-order macaroni and cheese, grilled cheese and specialty salads has sold three brick-and-mortar stores in South Florida to Hector Gonzalez, the company’s former general manager.  The first store is slated to open February 2019 and will be located at the Shoppes of Deerfield Beach at W. Hillsboro Boulevard and Powerline Road. The two remaining stores will open in 2019.

B.GOOD, a concept billing itself as "the industry pioneer in providing great tasting, locally sourced burgers, bowls, salads, smoothies and more," has announced the opening of three new stores in the Chicago metropolitan area.  These are their first stores in the Midwest.  The farm-to-table restaurant will open its doors in Vernon Hills in late October, followed by openings in Schaumburg and Naperville in mid-December.  the Boston-based company proudly serves “Food with Roots” – sustainably-grown, fresh and wholesome food prepared fresh in-house.

B.GOOD currently has 70 locations across the globe, with more than 50 in the U.S. alone and additional openings slated in the greater Albany and Charlotte markets later this year.

Jon Smith Subs, a restaurant serving hot, grilled subs featuring high-quality marinated sirloin steak and chicken, is opening at 9375 Emerald Coast Parkway West in Miramar Beach, Florida.  The brand offers freshly prepared subs, sandwiches, and award-winning crispy fries.  Jon Smith Subs, has 16 locations in Florida, Nevada, Ohio, Texas, and Virginia with 15 upcoming openings in 7 different states.

MOOYAH Burgers, Fries & Shakes, owned by seasoned franchisee and Ben & Jerry’s Orlando CEO Tareq Qarman, is moving into a 4,200 square foot space formally optioned by Hogan’s Beach Shop in Orlando’s Mango’s Tropical Cafe in 2019.  Voted Best Nightclub, Best Latin, Best Place to Celebrate, Best Live Music, Dinner Show of the Year and countless other recognitions, Mango’s Tropical Café Orlando is the largest restaurant, banquet facility and nightclub destination in the Southeast and International Drive’s newest, award-winning dining, entertainment and dance club with live entertainment nightly.   

 Chicken Salad Chick is showing strong activity with multiple openings.  The are expanding to Arkansas with their newest restaurant in Jonesboro, marking the brand’s first location in the state. The company grew its unit-count by 27 percent in 2017 and is continuing that momentum this year by expanding the concept into four new states including, Oklahoma, Arkansas, Kentucky and Missouri..

The Jonesboro restaurant is owned and operated by first-time Chicken Salad Chick franchisee and Arkansas native Melissa Hardcastle of NEA Chick, LLC. Hardcastle has decades of experience managing operations and business development across a variety of industries. 

Chicken Salad Chick also announced expansion into Texas with its newest restaurant in Spring. The new restaurant marks the brand’s first in the Houston area, with a second restaurant in Conroe near The Woodlands and a third Houston location slated to open next year. Located at 21630 Kuykendahl Road, the Spring restaurant will open on November 7th and is owned and operated by franchisee team Jake Alleman and Cody Gielen of Cojak Enterprises, LLC.

Chicken saladChicken Salad Chick is also expanding in Tennessee with its second location in the Knoxville area, marking the brand’s 10th location in the state. Chicken Salad Chick has continued to establish Tennessee as a prime market for expansion, with this new location coming on the heels of restaurant openings in Spring Hill, Memphis and Knoxville earlier this year. Located at 726 Watkins Road, the Maryville restaurant opened in early October.

Chicken Salad Chicks isn't the only concept growing.  Cowboy Chicken, the Dallas-based rotisserie chain known for its wood-fired chicken and handmade side dishes, opened in Bakersfield California in October.  TEXACAL Foods owners and operations partners Roche and Phil Fontes joined with Cal Capitol Investment Group’s Daniel and Doug Shaffer to bring the growing Cowboy Chicken brand to the Golden State. Born and raised in Bakersfield, both Fontes and the Shaffers still live in the area and look forward to doing business in their community. Roche, an industry veteran and California native, experienced Cowboy Chicken in Texas while at lunch with a friend and instantly fell in love with the great food and the friendly atmosphere. TEXACAL Foods and Cowboy Chicken have signed the largest franchise agreement to date, with 30 Cowboy Chicken locations planned across California.

From chicken to bars, breweries and alcohol themed concepts, a few locations with a strong emphasis on alcohol are opening or planned as franchise restaurant sales are announced nationwide. 

walk onBrusly, Louisiana is the site of the newest Walk-On’s Bistreaux & Bar.  The popular Baton Rouge-based brand opened an 8,100 square foot restaurant in early October.  Walk-On’s is renowned for its signature Louisiana-inspired menu.  This is the 24th store for the brand. Following a record-breaking year of franchise expansion, Walk-On’s has captured the top spot in two categories of Technomic’s 2018 Top 500 Chain Restaurant Report.

Old Chicago Pizza & taproom, a full-service restaurant known for its world class beer list full of local and regional craft beer offerings, combined with its delicious, hand crafted pizza and taproom fare, opened its latest location in Columbus Georgia this month.  The new store is at 6581 Whittlesey Blvd. This is the first Old Chicago in Georgia and the 109th location nationwide.

The Brass Tap is expanding its presence in Texas, signing a five-unit deal in Dallas.  Franchisee Sid Patel, who currently owns a Brass Tap location in Allen, Texas, will own and operate the new locations and has plans for more. Patel owned and operated a beer and wine shop in McKinney, Texas before signing on with The Brass Tap, making the jump to franchising when he realized the rate at which Dallas-area craft breweries were appearing.

Pizza and Italian are definitely expanding with announcements from Pizza Inn, Mountain Mike's, Pie Five, Fazoli's and Stoner's Pizza, all announcing growth in units.

Mountain Mike’s Pizza,  a leading California-based family-style pizza chain known for serving “Pizza the way it oughta be! ®,” has announced it has reached a major milestone with the opening of its 200thunit. The milestone location is in Sacramento, where the brand currently has 20 restaurants. With 12 new restaurants opened in multiple markets this year and four slated to open within the next few weeks, the Mountain Mike’s system has accelerated its growth pace and has plans to surpass 300 units within the next few years.

Pizza Inn has re-opened its doors in Lewisville Texas.  Robert and Denise Wrestler, first time franchisees opened the store earlier this month.  This is the Wrestler’s first restaurant and first-time franchising. Denise has 15 years of experience in the medical device field and Robert has been in finance for 20 years. They have been working with Pizza Inn to bring the restaurant back since 2016.

 Pie Five Pizza today announced that the fast-casual pizza chain has executed an Area Development Agreement with two new franchisees, set to open restaurants in Murphy and Prosper, Texas, later this year.

Charlie Clark of Pie Squared Investments Murphy, LLC signed an agreement to bring Pie Five to Murphy, Texas. Clark has several years of restaurant experience, including working with well-known pizza brands Mr. Jim’s Pizza and Cicis Pizza. Clark owned a Mr. Jim’s in Sherman, Texas, for 12 years and has managed three Cicis Pizza locations. Clark’s Pie Five restaurant is expected to open in November at 109 Murphy Road.

Shelia Afzal of Goldberg Funding, LLC signed an agreement to bring Pie Five to Prosper, Texas. Goldberg Funding owns five other Pie Five restaurants in the DFW metroplex in addition to franchising other restaurant concepts in the Dallas area. Prosper’s new Pie Five is projected to https://www.fazolis.com/open in December.

Fazoli’s, a QSR Italian chain, has announced the signing of two multi-unit development agreements for eight new locations in Georgia and Arkansas.  The brand is capitalizing on recent momentum and record-breaking performances of grand openings across the country. The company has successfully opened nine new restaurants this year, with the most recent being a conversion of a former Ruby Tuesday’s in Prattville, Alabama. They are on track to achieve the highest number of openings in nearly 10 years.

fazoli

The Georgia stores are being developed by Lamont Brooks and his partners at Arriba Restaurant Group.  They are current and former multi-unit and multi-concept owners of Pizza Hut, Dunkin Donuts, Subway, Burger King, Fuddruckers and Quiznos throughout the U.S. and South America. The group plans to open their first of five restaurants in the first half of 2019, targeting Snellville, Gainesville and Peachtree City for development, with further plans to develop the concept in the future.

Junior Das, Linda Bradley and Andy Patel of Pasta Joint, LLC signed a three-unit deal agreement to further expand the concept throughout Central Arkansas, targeting the Benton, Conway and Searcy areas for development. Local residents of Jonesboro and multi-concept franchise owners, the group has a combined 25+ years of foodservice and hospitality experience, the group’s current portfolio includes Dairy Queen, Smoothie King, Schlotzsky’s, Perkins and Uncle Maddio’s Pizza. The new franchisees plan to open their first of three locations in 2019, with continued development efforts over the course of the next few years.

An emerging brand, Stoner's Pizza Joint has announced six locations in Texas as part of its first development deal since launching the franchise brand in July.  The stores will be operated by Hafeez Dhanani and business partner Rezwan Mirza of the DhaMir Group, franchisees of the Burger King brand.  stoners pizza

Founded in 2013, Stoner’s Pizza Joint was recently purchased by the experienced restaurateurs behind HHI Hospitality, which owns and operates several proprietary restaurant concepts in Hilton Head, South Carolina, including Charbar Company and ¡Holy Tequila!, among others. The partners have spent the last few months preparing Stoner’s Pizza Joint to launch its national franchise opportunity. Currently, Stoner’s Pizza Joint has six corporate locations throughout Georgia and South Carolina. By the end of 2018, Stoner’s Pizza Joint plans to have three franchised locations in development, as well as ten additional commitments secured.

While Americans still show their love for pizza, healthy concepts continue momentum as well.  Nékter Juice Bar, the pioneering champion of the modern juice bar movement, has signed its largest Area Development agreement with 2nd Harvest LLC to open 30 restaurants during the next few years in existing markets of Florida and Tennessee and in two new markets, Maryland and Washington, D.C. Based in Miami, 2nd Harvest LLC plans to open its first Nékter Juice Bar in Florida by the end of Q1 2019.

The multi-state franchise agreement comes as Nékter Juice Bar continues to grow rapidly across the country. Now with 120 restaurants across 13 states, Nékter plans to open an additional 20 restaurants before the end of this year, with another 75 scheduled to open in 2019, and an additional 175 in varying stages of development.

Based in Miami, 2nd Harvest is led by three fitness and wellness industry veterans, Gerry Norman, Jon Norman and C.J. Bouchard. Bouchard is the current COO of Excel Fitness Holdings, which controls more than 60 Planet Fitness locations in Texas, North Carolina, Arkansas, Missouri, Oklahoma, and Virginia. Previously, he was an operating partner of 17 Planet Fitness locations in North Carolina and a co-owner of Zaniac Learning Center also in North Carolina. Jon and Gerry Norman were successful Planet Fitness franchisee owners in Miami, Florida.

Other announcement include openings and franchise restaurant sales from Dickey's Barbecue Pit, Urban Wok and Peno Grill.

Long time Dickey’s Barbecue Pit franchisee, Rob Ray, opened his third Dickey’s location in Pearland, Texas this Fall. Originally from Louisiana, Rob, has brought two Dickey’s Barbecue Pit locations to the Bayou area. He and his two investors have loved watching their business grow and wanted to open more locations in the Houston area.

urban wokUrban Wok has announced the opening of its St. Paul, Minnesota location.  The store opened in the Lowertown neighborhood of St. Paul and features an approachable menu of Asian-inspired cuisine. Their technology features include self-ordering kiosks through a partnership with Toast in addition to text-based communications with guests when their order is ready.  Announced as a menu built on "simplicity, customization and flexibility to give customers complete control of the dish they want to create."  The menu consists of nine signature sauces and hot sauces that are made from scratch and in-house daily, and a proprietary sauce blend. The Urban Wok will operate in a completely cash-free environment and will accept credit cards and mobile payments. 

Peno Mediterranean Grill, or Peno Grill, opened their latest unit in Jacksonville, NC only days after the devastation from one of the worst hurricanes to hit the region in decades. Their Charlotte, North Carolina location is also on the verge of opening.  Peno Mediterranean Grill is based out of Wilmington, NC and has been rapidly expanding across North and South Carolina. The new Peno franchisees in Jacksonville are two retired Marines, Mike and Ed and their wives, Judi and Ina.

Overall, franchise restaurant sales show continued strong growth and commitment to capital on the part of franchisees.  What does that say about the overall health of the industry?  While sales are inching up, new competitors and new units seem willing to push onto the scene and either disrupt existing market share or carve more customers. 

Are you in the market for a franchise restaurant?  Check out our listings online at this link.

 

Topics: Buying a Restaurant

How likely are you recommend We Sell Restaurants to a friend ?

Posted by Robin Gagnon on Oct 17, 2018 5:16:17 PM

If you're in the market for buying or selling a restaurant, a simple metric may tell you what you need to know about the services of our company, We Sell Restaurants.  Established for more than 17 years, we focus on selling more restaurants than anyone else nationwide.  How do we accomplish that goal?  We strive to create a customer service experience that turns clients into raving fans.   

For two years, we have tracked our Net Promoter Score.  A net promoter score is a measure of the response to the simple question, “how likely are you to recommend We sell Restaurants to a friend or colleague?” The responses are used to calculate our Net Promoter Score or NPS. 

According to Harvard Business School, the NPS is a customer loyalty metric that measures customers' willingness to not only return for another purchase or service but also make a recommendation to their friends, family or colleagues. 

The Actual NPS Calculation

The calculation is simple and standard whether it's used in the business brokerage industry, retail or technical support.  Respondents simply answer the question on a scale of 0 - 10.  The same question is asked each time with simply a substitution of the brand name.  For our brand, we ask everyone who participates in a closing as either a buyer or seller, "How likely is it that you would recommend We Sell Restaurants to a friend or colleague?"
 
The responses are grouped based on the methodology as shown below.

Answer 9 - 10 and you're what's known as a Promoter.  That makes you a loyal enthusiast who will keep buying and refer others, fueling growth for our brand.

Answer 7 - 8 and the methodology categorizes you as a Passive. These are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.

If you answer anywhere lower than this, in the range of 0 - 6, you're known as a Detractor.  Detractors are unhappy customers who can damage any brand and impede growth through negative word-of-mouth.

The math is simple.

Subtract the percentage of Detractors from the percentage of Promoters to yield the Net Promoter Score, which can range from a low of -100 (if every customer is a Detractor) to a high of 100 (if every customer is a Promoter).

 

How does We Sell Restaurants Stack Up? We're at 56.

NPS for Blog

That puts our score in the top 50-75% of all companies using the metric.  Scores higher than 0 are typically considered to be good and scores above 50 are considered to be excellent.

We also ask our customers to write to tell us why they gave the scores.  Here are some of the latest remarks:

"Scott Ruby helped us with the sale of our Little Caesars -- could not have asked for a better broker -- above and beyond expectations -- rare to find and very appreciated -- thank you!!"

"I had interviewed several brokers. When I spoke to David Duce and instantly felt he was an advocate for me not just a mediator of a transaction. He treated me the way I would treat a seller."

"Robin and her staff were very professional to work with."

"The agent was AWESOME!!!! Super knowledgeable, aggressive, helpful, and friendly. I wish I had other things to use him for."

Topics: Selling a Restaurant, Buying a Restaurant

Franchise Restaurant Sales and Openings Nationwide

Posted by Robin Gagnon on Sep 21, 2018 2:34:34 PM

New Franchise Restaurants sales and openings are hitting more markets across the U.S.  Announcements for new stores and store openings in August and September range from Chicken Tenders to Chicken Salad Chicks with Curry Up, Breweries and Bars also in the mix.  Here’s what We Sell Restaurants sees nationwide in new franchise restaurant sales either announced or opening nationwide.  

Huey Magoo's Chicken Tenders Announce Expansion To Atlanta

Hailed as the Southeast’s fast-growing, greatest tasting chicken tenders brand, “Huey Magoo’s” is announcing several new stores in the Atlanta area starting next year.  Papa John’s Dean Thompson, Derry Thompson and Alex Larson are joining the Magoo’s team to bring the popular Central Florida based brand to the market with an initial 10 stores and possible additional 36 stores, totaling 46 new Huey Magoo’s franchises coming to the Greater Atlanta area.  The first restaurant is slated to open in April/May 2019, followed by the second store around December 2019.

Also announced recently, The Great Greek Mediterranean Grill is opening on September 21st Located at 11300 Legacy Ave, Palm Beach Gardens, FL 33410 with a Grand Opening Celebration of fresh flavor from salad to souvlaki skewers. 

Chicken Salad Chick is opening its newest franchise restaurant at 5050 Bayou Boulevard, Pensacola, Florida.  The brand serves the nation’s only southern inspired, fast casual chicken salad restaurant concept.  This is the brand’s third location along the Florida Gulf Coast and 17th location in the state. Owned by veteran franchisees Tommy and Stephanie Lauderdale, the new restaurant will include a variety of dining options including a drive-thru, takeout and catering.

The brand also announced the launch of its first restaurant in Oklahoma. Located in the Tulsa area at 1320 East Hillside Drive in Broken Arrow.  The new restaurant will open on September 20th and marks the brand’s 95th restaurant location across 10 states. The Broken Arrow restaurant kicks off a string of new market development for Chicken Salad Chick with restaurants set to debut in Arkansas, Kentucky and Missouri before the end of the year.

 

Curry Up Now Finalizes Multi-Unit Franchise Deal in New JerseyCurry Up Now, the largest and fastest growing Indian fast casual concept in the United States, has finalized a multi-unit franchise deal to bring its innovative, approachable Indian eats to markets throughout the state of New Jersey.

Franchisees Pritesh Benjamin and Tejavsi Patel plan to open Curry Up Now locations in the Central and Northern parts of the state, with sights set on opening their first location in the next six months. The New Jersey outposts will be the first for the brand in the Northeast region and join additional franchised units in development around the country.

The New Jersey locations join over 50 franchised and corporate stores in development, along with multiple market deals in the works in 13 additional states. Curry Up Now currently operates three food trucks and six corporate brick-and-mortar locations across the Bay Area, as well as two Mortar & Pestle cocktail bars in San Jose and San Mateo.

A new emerging brand, Sauce on the Side, opened on August 20th, in Chesterfield, Missouri.  Sauce on the Side first opened in 2012 when business owners Mangialardo, Maciariello, and Porzel collaborated to fulfill a goal – feed the community. 

Last month, Sauce on the Side celebrated the anniversary of six years with three corporate locations but opening the first franchise made it their biggest milestone yet. Robinson and Kaden plan to open four more franchise locations throughout Missouri. 13 more locations are on schedule to open throughout the Midwest in the next few years.

Moving on to alcohol and beer, always a good combination, Old Chicago Pizza & Taproom opened its newest location at 545 Wakarusa Dr., Lawrence, KS 66049 on August 29th. This is the 11th Old Chicago in Kansas, and the 108th location nationwide.

Del Taco Restaurants, the nation’s second leading Mexican quick service restaurant* (MQSR), announced that several established multi-unit franchisees within its system are continuing to grow with the brand in 2018 and beyond, utilizing Del Taco as a growth and diversification vehicle for their company’s portfolios.

Existing Del Taco multi-unit franchisees that have units which have opened, or expect to open in 2018, include Paul Hitzelberger, Mark Miller, Brent Veach, Doug Koch and Mark Schostak, each of whom are growing with the brand in their respective markets across the Pacific Northwest, each of the Four Corners states and Michigan, demonstrating Del Taco’s broad geographic appeal.

Hitzelberger, who is the recipient of the Utah National Restaurant Association’s 2018 Lifetime Achievement Award, opened his 32nd and 33rd locations this year. For diners in Utah, they know heading to a Del Taco means a great experience from a brand that supports the community, with the Hitzelberger team having donated more than $1.1 million to various local organizations since 2008.

Brent Veach, longtime Del Taco franchisee, will be opening two new restaurants by year’s end, one in the Denver area and one in the Phoenix area.

Twin Peaks Makes Highly Anticipated Ohio Debut

Twin Peaks – the ultimate mountain sports lodge – opened the first Ohio location in August at 5060 Monroe St., across the street from Franklin Park Mall.

The 8,000-square-foot space offers full-service dining and regular hours for both lunch and dinner. The new restaurant will also offer unbeatable Happy Hour specials Monday through Thursday, from 3-6 p.m., including great deals on House Brews, wines, cocktails and delicious made-from-scratch shareable appetizers.

Twin Peaks is so much more than the typical sports bar. The lodge welcomes every guest with primetime matchups and barrel-aged whiskey. The entire menu is prepared in-house, to order and in generous portions to satisfy every appetite. The hearty made-from-scratch comfort food pairs perfectly with a frosty draft beer or a classic whiskey cocktail.

Toledo marks the first Twin Peaks in Ohio and the 83rd system-wide

 In Michigan, visitors to “Little Bavaria” can now get their fix of traditional treats on the go as the Bavarian Inn Restaurant introduces its new mobile eatery, the “Cluck Truck,” just in time for the busy tourist season.

The “Cluck Truck” menu features snacks, sandwiches, entrees, and sweets reflecting some of the Bavarian Inn’s customer favorites. The truck launched on August 30th

Cowboy Chicken Opens First Georgia Location in McDonough on Sept. 3 with Chrystal Jakes, Wife of Former NFL Cornerback Van Jakes

 

 

Cowboy Chicken, the Dallas-based rotisserie chain known for its wood-fired chicken and handmade side dishes, opened its first Georgia restaurant in McDonough (90 South Point Blvd.) on Monday, Sept. 3.  Founded in Dallas in 1981, Cowboy Chicken is a fast-casual restaurant chain specializing in real wood-fired rotisserie chicken. The brand has been included in Fast Casual’s Top 100 Movers & Shakers list every year since 2012. In 2017, Cowboy Chicken was named one of the Future 50 Emerging Chains of the Year by Restaurant Business and one of the Top 25 Most Loved Brands by Foodable.   

Garbanzo Mediterranean Fresh – the leading Mediterranean cuisine brand renowned for its wholesome, healthy and simple dishes, top-quality meats and fresh-baked pita – opened in August in the Haupert Union Building on Moravian College’s campus. Garbanzo is headquartered in Colorado with 27 locations nationwide.

Located at 1125 Monocacy St., Bethlehem’s new restaurant marks the first Garbanzo Mediterranean Fresh in the entire state of Pennsylvania and Garbanzo’s fourth university location operated by SODEXO.

While a non-traditional unit, the newest Garbanzo features many elements of the recently refreshed brand trade dress. True to form, the new-look Garbanzo exudes a simple, refined and fresh aesthetic for the brand. The unit features a bakery area where guests will be able to see their pitas being lovingly kneaded, placed in the oven and puffed to perfection right before their eyes. Its welcoming décor and inviting “cocreation” service model will instantly make guests feel comfortable while they discover just how delicious nutritious can be.

Garbanzo is making fresh Mediterranean cuisine a mainstream favorite across the United States. Its authentic, nutrient-rich dishes derived from Old World recipes are served with a new twist, but without compromise. Every order is customized to the guest’s liking, from juicy, high-quality meats and salads made from scratch to gyros, wraps and pita baked from scratch all day.

Dickey’s Barbecue Pit new franchisee Josh Wise plans to open his first Dickey’s location in Newark, Ohio in September. Dickey’s Barbecue Restaurants, Inc., the nation’s largest barbecue chain was founded in 1941 by Travis Dickey. The fast-casual concept has expanded to more than 550 locations in 45 states.

With an extensive background in the restaurant and hospitality industry and a passion for pit-smoked barbecue, Josh knew that Dickey’s Barbecue Pit would be the perfect fit. The new location will have a variety of grand opening promotions in September to complement Dickey’s slow-smoked barbecue.

 The Brass Tap is expanding in the Golden State, signing a five-unit deal in Modesto. With the area’s strong appreciation for great craft beer, the brand is looking forward to introducing its innovative concept to a new group of loyal customers.

Franchisee Rick Sousa, who currently works in business development for Dust Bowl Brewing Company in Modesto, will own and operate the new locations. Sousa has been in the food service and manufacturing industry for his entire career and plans to use his expertise in the field to help his Brass Tap locations thrive.

Building on the momentum of Sousa’s five-store signing in Modesto, The Brass Tap is looking at expansion opportunities in the San Francisco Bay Area, aiming to capitalize on the growing craft beer scene in Northern California.

Outside of California, The Brass Tap continues to grow its presence throughout the country, including in Texas where an existing operator with the brand is preparing to sign for a five-store deal in Dallas.

Squisito Pizza & Pasta Opens in Queenstown, MD with FranchiseeSquuisito Pizza & Pasta also opened for business in the Queenstown Premium Outlets in Queenstown, Maryland as well. This location is the first Squisito owned by franchisee, Martin Hernandez. Hernandez has been working with Squisito for the better part of 2 decades and it was his dream to bring Squisito back to the Eastern shore.

Squisito is a fast-casual Italian concept, with multiple locations across Maryland and Virginia. This restaurant is the 4th Squisito Pizza & Pasta franchised location and is the 11th restaurant for the Monte Restaurant Group which also includes Meatballs, Etc. and Carpaccio Tuscan Kitchen. Squisito Pizza & Pasta will also be opening later this Fall in Oakton, VA with franchisee, Kevin Trump.

 

That is a crazy month or so of openings of franchise restaurants nationwide.  Was your old favorite or new up and coming concept in the mix?  Let us know at We Sell Restaurants so we can track all the franchise restaurants opening nationwide.  

 

Topics: Buying a Restaurant

Buying a Restaurant?  You're Not Alone.  Check out the Good Economic News & Sales in August

Posted by Robin Gagnon on Sep 13, 2018 11:24:50 AM

The economic news is good on all fronts for those buying a restaurant.  We Sell Restaurants posted a record month while national restaurant sales hit a three-year high.  If you're in the market for buying a restaurant, it appears that 2018 could be your year as all signs are positive.  Here's what we know so far.

Same-store restaurant sales were up 1.8 percent, making August of 2018 the best month in three years!  That's right.  September of 2015 was the last month with this much positive news.  Hurricane Harvey, which hit the Texas coast in August of last year, greatly impacted sales in the last week of that month, giving restaurants a built-in advantage. That soft comparison resulted in same-store sales growth of 2.9 percent for the last week of August 2018. The sales are reported from TDn2K’s Black Box Intelligence data, based on weekly sales from over 30,000 locations representing more than 170 brands and nearly $70 billion in annual sales.  

The Small Business Optimism Index soared to 108.8 in August, a new record in the survey’s 45-year history, topping the July 1983 high water mark of 108. The record-breaking figure is driven by small business owners executing on the plans they’ve put in place due to dramatic changes in the nation’s economic policy.

The August Small Business survey showed:

  • Job creation plans and unfilled job openings both set new records.
  • The percentage of small business owners saying it is a good time to expand tied the May 2018 all-time high.
  • Inventory investment plans were the strongest since 2005 and capital spending plans the highest since 2007

Pink Simple National Wine Day Social Meida GraphicPeople are working.  The national unemployment rate averaged 3.9 percent over the last four months.  There were 20 states reporting unemployment of 3.6 percent or less in July. This could translate to struggles for some restaurants going forward as they seek to fill opening and face competition for the best workers.

Turnover is Stable to Slightly down. People Report™ tracks staffing levels, demographics, turnover and provides compensation and benefits analysis for the restaurant industry on a monthly, quarterly and annual basis. The latest People Report metrics indicate turnover rates for both managers and hourly employees dropped slightly in July. Since employee retention and guest services are so aligned, this is good news for the industry as well. 

Restaurants are Selling.  In the month of August, We Sell Restaurants posted a sale virtually every other day.  Nearly 60% (57% to be exact) were franchise resales.  This demonstrates that a strong open and operating concept with bottom line earnings is a winning combination for those buying a restaurant.  Of the transactions for the month, many were for locations generating sales of more than a million a month and the lowest sales levels were restaurants selling with volume of just over $200,000.  

Forty percent of the units changing hands with the assistance of We Sell Restaurants were netting six figures or more.  This is a prime opportunity for those transitioning out of corporate America and seeking strong earnings for their families. This is despite the previously cited strong labor market which is also inducing those back into the jobs market at higher wages.

Restaurant Broker Robin Gagnon who was the broker of record for five transactions in the month and Co-Founder of We Sell Restaurants said this of the results, "The economic environment is certainly stimulating the overall market for buying a restaurant.  We predict continued strong sales for the year based on our current pipeline as we are currently working deals that will close in early 2019.  The best listings, especially those with high earnings, are seeing multiple contracts and backup offers."  She went on to say, "Part of the success we are seeing is the strong lending environment.  Our banks and lending contacts see the continued strength of the economy as a mitigating factor to any risk assigned to deals.  They appear to be factoring this into their lending and forward-thinking projections." 

With all this economic good news, is it the right time to be buying a restaurant or selling a restaurant?  For many, while the dollars and sense play a role, decisions are often based on family needs or lifestyle choices.  When the economic trends and the personal desires overlap in an environment that satisfies both needs, it’s a winning strategy.

 

Blog Byline Robin

  

Topics: Buying a Restaurant

Franchise Restaurants Grow Again -- from Houston to China

Posted by Robin Gagnon on Aug 30, 2018 11:30:00 AM

Franchise restaurants are growing again and here are the latest deals that We Sell Restaurants has been tracking around the world.  August was a very busy month with multiple opening and announcements of franchise restaurants both overseas and within the U.S.  Many small concepts with under 50 - 100 units seem to be putting up new locations which speaks to the overall health of the industry and interest by customers in new concepts.  Here's what we captured in August announcements for new franchise restaurants with more than a dozen concepts putting deals on the table ranging from single store to master franchise development agreements for multiples.  

Houston’s iconic German eatery, King’s BierHaus has finalized its first deal deal to bring three franchise restaurants to the greater Houston area. King’s BierHaus, cites itself as an award-winning ‘hybrid-casual’ German eatery.  

TKing's Bierhaus Signs First Franchisee to Expand Hybrid-Casual Concept in Greater Houston Areahe first franchised location will open in League City (828 W. FM 646) in October 2018.  A second location is in the process of being secured in Katy. Local franchisee Chung Hui, whose background is in retail development,  is the franchisee of record for this expansion. 

King’s BierHaus is the modern sister concept to the #1 German Restaurant in America, King’s Biergarten, founded by Austrian-born father and son duo Hans and Philipp Sitter in 2011. It began as a car wash serving bratwurst and beer and, over the years, developed into an iconic stop for local Houstonians and tourists alike. 

The bierhaus has developed an innovative ‘hybrid casual’ model for its franchise restaurants, which combines  elements of full-service and fast casual dining.  The brand cites this as a contributing factor to store volume.  King’s Bierhaus’ existing location, which implements the hybrid casual framework, reported a monthly average of $507,102 gross sales in the second half of 2017.

Mexico is on the mind of major franchise restaurants looking to grow and Mexico City is seeing more than one new concept.  Romano’s Macaroni Grill®, has announced the opening of its third location in Mexico City. Opened by Macaroni Grill franchise partner, Grupo Dival, the new franchise restaurants will be in the Tlalpan borough, just ten miles south of Mexico City, with a second location opened by the group within the past six months. International expansion continues to be an important part of the strategic franchise restaurants plan for Macaroni Grill with the recent opening in Mexico City bringing the number of international locations to 18, located in seven countries.

16th Hooters Location in Mexico Opens in Mexico City

Hooters of America recently announced the 11th Hooters location in Mexico City, Mexico.  Led by franchisee Hooters de Mexico, the new 5,3755 square foot venue, is located at Calz. Acoxpa 430 Loc. A-PA-07/08, Col. Vergel del Sur, CP 14340, Tlalpan, in Mexico City,

The new location will feature a centrally located bar, a wide array of cocktails and craft beers, comfortable seating options, and a top-of-the-line AV package perfect for watching all the games. 

Hooters of Paseo Acoxpa boasts 294 seats, over 40 TVs, and a spacious patio, making it easy and comfortable for fans to catch their favorite game.  Hooters continues its acceleration of  franchise restaurants and is actively seeking qualified franchise partners to open new locations in select markets across the U.S. and around the globe. 

Willie Jewell's Old School Bar-B-Q Lexington Grand Opening 8-22-18 Willie Jewell’s Old School Bar-B-Q, the fast-casual spinoff from the 69 year veteran Bono’s Pit Bar-B-Q concept, is expanding in Lexington, SC.  Willie Jewell’s will be opening its newest location on August 22, 2018.  Locally-owned by Willie Jewell’s franchisee, Jeff Katz, the first Lexington location will be 105 Saluda Pointe Court and will be open 7 days a week from 11:00am – 9:00pm with full service Catering opportunities as well. 

This will be the 13th of the franchise restaurants stores for the growing concept, which will now have restaurants in Florida, Georgia, New Hampshire, and South Carolina.  Willie Jewell’s is continuing to expand into new markets through the strength of locally owned and operated Franchises, with 4 more stores currently under construction in Brunswick, GA and the Tampa, FL areas.

 

Chicken Salad Chick to Open Fourth Nashville Location in Spring HillChicken Salad Chick, the nation’s only southern inspired, fast casual chicken salad franchise restaurants chain, announced today it will be expanding in Tennessee with its fourth Nashville location opening in Spring Hill. Located at 4867 Main Street, the company-owned restaurant marks the brand’s 92nd location in the Southeast and will open on Tuesday, August 21st with a ribbon cutting ceremony starting at 9:30a.m.

The Chicken Salad Chick concept, born in Auburn, was established in 2008 in the kitchen of founder, Stacy Brown. When Stacy discovered that the local county health department would not allow her to continue making and selling her delicious recipes out of her home kitchen, she overcame that obstacle by launching her first franchise restaurants with the business expertise of her future husband and fellow founder, Kevin Brown. Together, they opened a small takeout restaurant, which quickly grew; the company now has 92 restaurants across the Southeast.

 

SAJJ Mediterranean Announces Official Grand Opening Celebration for New LocationSAJJ Mediterranean, the popular family of Bay Area-based restaurants and food trucks known for fresh, exotic, and customizable Middle Eastern cuisine, will officially celebrate the Grand Opening of their seventh brick-and-mortar store on Friday, September 7. The newest SAJJ outpost is located at 88 Belden Place/ 485 Pine Street in San Francisco’s business epicenter, the Financial District, and will be celebrating its official Grand Opening by offering up specials and free items to new customers.  It is the second San Francisco location for the brand. 
SAJJ’s newest eatery is located across from the iconic Bank of America building on Belden Place, known among locals for transforming from a small drivable road at night into a pedestrian-only, cafe-lined street during the day, offering al fresco dining experiences in the midst of the bustling FiDi neighborhood. The historic building that houses the new SAJJ shop was built after the Great San Francisco Earthquake of 1906, and still retains its original brick walls and mosaic floor. To preserve the integrity and history of the century-old building, SAJJ has kept much of the space’s original structure and qualities intact.

Tim Horton's plans to open 1,500 franchise restaurants in Asia over the next decade despite facing hefty competition from a slew of companies who have dominated the market as the continent warms to drinking coffee.  The president of Tim Hortons says a plan to conquer a crowded Chinese coffee market hinges on tailoring its menu to local habits and tastes — including offering congee and matcha alongside signature items such as double doubles.

Tims announced an agreement last month with private equity firm Cartesian Capital to bring thousands of franchise restaurants to China, with plans to open the first location in 2019.Tim Hortons has previously announced plans to expand to Spain, Mexico, Great Britain and the Philippines.  Its U.S. expansion, however, appears to be faltering. Last month it closed four locations in Ohio, the latest in a string of closures south of the border in the past several years

TTropical Smoothie Café Opens 700th Locationropical Smoothie Café, has announed the opening of its 700th location in the system, in Hurst, TX at 760 Airport Freeway Suite 100. This major milestone showcases Tropical Smoothie Cafe’s rapid growth since launching in Destin, FL more than 20 years ago and gets the company closer to reaching its goal of opening 120 franchise restaurants in 2018. Tropical Smoothie Café is continuing to fuel development in Dallas/Fort Worth to bring its better-for-you® offerings to more communities throughout the metro area. With nine cafes currently open in Dallas/Fort Worth, these expansion efforts will bring two additional locations to the market by the end of this year.

 

Fork & Salad Announces Its First U.S. Mainland Store in Southern CaliforniaFork & Salad, the Maui-based eatery with a mission to make healthy, farm-to-table cuisine accessible to the masses, plans to open its third corporate location and first U.S. mainland store in Orange, CA. The location, which will introduce the brand to the mainland U.S. and serve as a training store for future franchisee operators, is slated to open before the end of 2018.

Fork & Salad’s new Orange County restaurant will be located in a historically restored building that features original brick construction from 1922 and open wood truss beams. The 1,535 square foot space will have seating for more than 45 guests and be prominently located in the walkable district of Old Towne Orange. Fork & Salad’s menu options include build-your-own and signature salads, produce-forward sandwiches, gluten-free items, kombucha on draft and more, which can be enjoyed in-store or for take-out and pick-up via phone ordering or the Fork & Salad mobile app.

Bennigan's Continues Growth in Small-Town America with New North Dakota RestaurantBennigan’s announces it newest store in Mandan, North Dakota.  The 42-year-old brand is developing in smaller markets as evidenced by this location in a town of only 22,000 people.  

The new restaurant, located at 1506 27th St. NW, will celebrated its grand opening on Monday, Aug. 20. 

Since the end of 2012, the company has opened new franchise restaurants in Clarksburg and Frederick, Md.; Sacramento, Calif.; Melbourne, Fla.; Monahans, Texas; Lexington, Ky.; Veracruz, Mexico; Larnaca, Cyprus; Obarrio, Panama; Doha, Qatar; and Dubai, UAE.

Franchise restaurants are coming soon to Steubenville, Ohio, and Memphis, Tenn.; and internationally in Guatemala, Honduras, El Salvador, Amsterdam and Pakistan, with more than 100 additional locations in development.

Jon Smith Subs, a nationally recognized chain known for delicious hot, grilled subs featuring high-quality marinated sirloin steak and chicken, celebrated a grand opening in Richmond, Virginia on August 20th.  The restaurant, located at 8517 Midlothian Turnpike, Richmond, is 1,600-square-feet and seats 35-40.  Jon Smith Subs has locations in South and Central Florida as well as Ohio, Nevada, Texas, and California—soon in Australia.  

 Jimmy Hula's Continues Florida Expansion with Orlando OpeningOrlando based Jimmy Hula’s Licensing announced the opening of its 15th store in August at 68 East Pine St., Orlando, Florida.  Jimmy Hula’shas units in the Orlando, Tampa-Clearwater-St. Petersburg, Jacksonville and Daytona Beach markets and is looking to franchise expansion throughout the Southeast.

Jimmy Hula’s serves specialty tacos, burgers, sandwiches and bowls in a surf/ beach vibe. It’s fine food at value pricing. That’s why our locals call it Food Nirvana. All stores serve a variety of craft beers and several stores have full service bars.

Jimmy Hula’s has signed area development and master franchise agreements calling for the opening of 60 additional franchise restaurants in Florida and North Carolina.

 
Slim Chickens Gears Up for August Opening in FayettevilleSlim Chickens, a leader in the “better chicken” segment of fast-casual restaurants, will continue expansion of its fresh chicken and unrivaled flavor in its headquarter market of Fayetteville, Arkansas. The corporate-owned restaurant will be located at 1855 MLK Jr. Boulevard opened in August. This is the second corporate store in the market.  

Since the beginning of the Slim Chickens journey in Fayetteville, the brand has celebrated 75 franchise restaurants openings in 14 states, as well as international locations in Kuwait and London. The brand is well on its way to achieving its goal of 600 restaurants by 2025.

Westminster, Colorado Selected as Upcoming Location for The Great Greek Mediterranean Grill Expansion The Great Greek Mediterranean Grill will soon be coming to 14315 Orchard Parkway, Suite 400, Westminster, Colorado. The parent company for The Great Greek– announced that is has finalized its latest agreement with Jack Jones, a local business man and former defense contractor. The rapidly-expanding fast-casual franchise restaurants group already has 15 locations in development across the United States, along with its two original, award-winning locations in the greater Las Vegas metropolitan area.

UFG has been strategically expanding The Great Greek brand nationwide, with a strong focus on established markets that are ripe for a departure from typical fast-food fare and middle-of-the-road flavor. Likewise, they are partnering with experienced business people eager to make a bold entrance into the restaurant market. 

The original Great Greek locations were in Las Vegas, but the concept is now being franchised by The United Franchise Group and is quickly expanding across the U.S. and abroad.

That is a mind-boggling amount of activity for a single month showing tremendous growth in franchise restaurants from small concepts to very large players.  We'll keep you posted on more deals as they hit the market.  Meanwhile, if you're interested in franchise restaurants but want to avoid the risk of a start up, visit us online to see our inventory of existing franchise restaurants for sale?  Check out our listings online at the link below or contact We Sell Restaurants for more information. 

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Topics: Buying a Restaurant

Restaurant Franchises Growing in Latest Deals Announced

Posted by Robin Gagnon on Aug 17, 2018 9:22:26 AM

Interested in knowing which restaurant franchises are inking new deals and expanding across the country?  We are too!  We Sell Restaurants goes through all the online announcements and press releases to bring you the latest restaurant franchises expanding nationwideWe’re tracking it all from units ranging from one to one hundred.  Here's what we saw in the latest press releases and announcements.  

Despite what we restaurant brokers believe is a tenuous business model, health food concepts continue to expand.  Each month we see new juice concepts and health food concepts adding units.  The newest deal announced is with former NBA player Kris Humphries., He is building six units as the latest multi-unit owner developer for the healthy food franchise, Crisp & Green.  He’s expected to put six restaurants under this brand in the Minnesota Minneapolis Twin Cities market. The first one is already under construction. 

In the totally not healthy food category, the Brass Tap, a craft beer bar franchise, is expanding by five units in California.  The developer is Rick Sousa, a principle of Dust Bowl Brewing Company. He’s a veteran of the industry and plans to open his Modesto store by December of 2019.

Pizza was the single category to post comp store increases last year so it’s not surprising to see restaurant franchises adding units to the mix.  Mountain Mike’s Pizza has inked a deal for more than 40 new units in Southern California.  Between these two deals, Southern California has beer and pizza covered.  A current franchisee, Robby Basati, with five existing stores will be developing 40 new Mountain Mikes Pizza restaurant franchises.Restaurant Franchises Announced

Not to be left out of the mix, Hungry Howie’s another pizza chain, has five new restaurant franchises in development with Deem Investments.  These stores will open in Arkansas.  Hungry Howie’s is currently operating in 22 states nationwide but have been juicing up development nationwide.  They appear to be working hard to expand their footprint.

California has been a tough state to deal with in development of new restaurant franchises, but it looks like that’s beginning to change.  Perhaps the demand for new concepts is now at the tipping point to outweigh the difficulties to develop stores in this market.  Those issues include:  onerous regulations, extreme impact fees and high rents that far outpace the nation. These barriers to entry are not stopping new restaurant franchises from diving in at new levels.  Between the Mountain Mike’s 40 store deal, five for Brass Tacks and the newest from Yang’s Braised Chicken, California development is dominating this list with nearly 50 units on the table.

Many brands develop in the U.S. first for strong proof of concept and then expand internationally.  In an approach that turns this model inside out, Yang’s Braised Chicken has over 6,000 units around the world and is now turning their development to the U.S.  They opened their first unit in this country in 2017 and just announced a multi-unit deal with Xiang Wang for three units in Orange County California. Again, California makes the list!

Also, on the West Coast, Café Yumm announced a three-store deal with franchisee Rebecca Blewett.  The chain, headquartered in Oregon has 20 locations currently.

Turning from the West Coast to the southeast, Louisiana-based The Lost Cajun is heading to the western North Carolina area.  A new deal has been announced to develop six additional restaurants in the traditionally mountainous part of the state over the next four years.  Another veteran operator is launching in that market.  Steve Galloway owns five Dunkin’ Donuts and has been a developer for concepts including:  Taco Bell, KFC, Pizza Hut and Subway.

Overall, we’re seeing trending in sales, leasing and franchise restaurants that agree with the economic trends nationwide.  There is an increased level of risk taking and launch in new concepts. This is fueled by a strong economy, a more business friendly regulator climate and lenders with plenty of money to fund new deals.

Want to see the restaurant franchises in our inventory?  Check out our listings online.

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Blog Byline Robin

Topics: Buying a Restaurant

Atlanta Restaurant Sales Increased in Second Quarter - What About Restaurant Sales?

Posted by Robin Gagnon on Aug 9, 2018 2:54:13 PM

The latest numbers are in, courtesy of Net Financials and their survey of restaurant sales in Atlanta for the second quarter of 2018.  What’s the word?  The numbers are good with a continuing positive trend.  Even better news is that Atlanta showed increases beating the national trend.  According to Robert Wagner, founder of NetFinancials, Atlanta results from April to June showed gains of 2.0% over last year.  This more than doubled the national performance, as measured by Black Box Intelligence, which was up just .8%.

The quarterly survey posted by the group survey 105 independent Atlanta restaurants and indicates that nearly two-thirds (61%) were positive for the quarter.  Keep in mind that these results only relate to independent operators while national data includes independent and franchise concepts. 

On a year to date basis, 2018 Atlanta restaurant sales were up 1.1% over 2017.  What is this saying about the industry? For this major market and around the country, we are seeing restaurants battle for market share.  Growth in units from 2014 to 2016 led to many hitting a wall in 2017 where the entire industry was flat.  More units, all selling food, same size customer base equates to weaker market share by concept.Restaurant Sales increased in the second quarter

In the opinion of this restaurant broker, many concepts are simply overbuilt, with too many units, particularly among the fast-casual category.  With everyone fighting for their share of the family food dollar, what’s the fix?  Here’s one solution.  It’s well known that a rising tide does in fact raise all boats.  The trajectory of the U.S. economy and overall growth in GDP means an overall expansion in the economy.  At the same time, more people are working, and wages are climbing.  That should all us to see better positive comp store growth in sales nationwide for 2018.  We believe unit growth will also level off. 

The primary reason for flattening of this dimension is simply the lack of available restaurant space for lease.  There can’t be that many more units opening because restaurant space for lease is limited.  Occupancy rates nationwide are at near all-time highs and space is at a premium.  We have landlords offering to buy out long term tenants with below-market lease rates to move new concepts willing to pay more, into the location. We’re also looking at the demise of the shopping mall, a former location for many food concepts.  There has not been a single new enclosed mall built America since 2006, over a decade ago.  Those restaurants operating in mall locations are looking to move those out, increasing demand for alternate lease locations. One outcome of the limited inventory is the amount of “sold but not built” units on the books of many franchisors.

The results vary by market but Atlanta landlords, along with Austin, Dallas, Houston and other major cities seem very proud of their locations and are quoting rent per square foot at numbers that would have shocked us a few years ago.

With occupancy costs growing faster than sales growth, restaurants are struggling to make up earnings, especially with labor costs increasing.  Overall, if you ask operators, we view the trend as “cautiously optimistic.”  The National Restaurant Association tracks the health and outlook of the restaurant industry through their Restaurant Performance Index or RPI.  Their latest numbers (released July 31), show June was at 101.9, up 1.4 percent from May and the highest in six months. 

The RPI looks at three factors, Current Situation, Current Sales, and Expectations.  The current situation was at 101.9 in June for the fifth consecutive month. This index measures 100 as a neutral level.  Index values above 100 indicates that key industry indicators are in a period of expansion, while index values below 100 represent a period of contraction.

The Restaurant operators’ outlook found thirty-eight percent of operators expect to have higher sales in six months. Six percent expect their sales to be lower.  That’s in line with national performance of restaurants which has turned in the fourth straight quarter of positive sales.

The table provided by NetFinancials for the comparison sales data is shown below



Sample Size:

The data provided by NetFinancials was drawn from a sample consisting of 105 non-franchise restaurants were drawn from the metro Atlanta market. Total survey sales volume was $168 million for year-to-date 2018. The survey includes restaurants in Atlanta’s fast-casual, casual and fine-dining segments open at least 18 months


NetFinancials, Inc. provides a full range of tax and accounting services for restaurant companies. Email: lori.johnson@netfinancials.com. www.netfinancials.com Direct: 404-874-7003. The NetFinancials quarterly Atlanta restaurant sales survey is provided as a public service to the restaurant industry. Copyright NetFinancials, Inc.

Topics: Buying a Restaurant

How the Top Ten Restaurants for Sale Are Signalling a Change in the Business

Posted by Robin Gagnon on Jul 31, 2018 5:40:36 PM

 Looking for the best restaurants for sale nationwide?  You're not alone.  Our buyers spent a lot of time looking at great businesses all over the country but these hit the top ten!  The results of the July 2018 list signal continued strong growth in the market and buyers willing to assume more risk.  Here's why.  

For the first time in a long time, the top ten restaurants for sale were dominated by buyers willing to invest in space and develop their own concepts.  Four out of the top ten or 40% were restaurant space for lease opportunities.  In the opinion of this restaurant broker, that means higher risks are being assumed and overall, more confidence in the marketplace as people invest in new concepts rather than established ones with cash flow.  That's a great signal for continued strong restaurant sales growth on top of recent economic news that the GDP growth rate for second quarter hit 4.1 percent.  

In addition to restaurant space for lease, buyers also logged a lot of looks at a food truck, another business that will be developed with a new concept. Here's the update on everything getting attention for the month. 

_2018-06-26_15_38_atlanta-70847_1920We measure the "best" for the month based on views, (both on We Sell Restaurants and all other national sites), phone call inquiries, signed confidentiality agreements and discussions with our expert restaurant brokers. 

The number one listing for the month was a restaurant space for sale in the Buckhead neighborhood of Atlanta, GA. An area with a high income bracket, Buckhead is "where new money parties and old money lives."  This led to strong activity on a fantastic location.  This nearly 2300 square foot space with a fully equipped kitchen has unlimited potential for any concept! With seating space for 80 guests inside and an extra 24 outside on the patio, which is used most of the year!            

                    

  

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These Three smoothie king units have shot up on our list this month, they weren’t even in contention last month and this month this is our second hottest listing!  And it’s easy to see why! These three fully open and operating locations are with one of our most popular business opportunities, and it’s a simple to operate concept! In a part of Georgia known for it’s beauty, fully equipped franchise locations are just sitting pretty, as they wait for their new owner! This listing, priced at $749,000 shows restaurant buyers are looking hard at higher priced listings, another sign of a strong marketplace. .

 

   

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The second lease space to make the list was also in Georgia. This one features a 1500+ Square Foot second Generation Restaurant for lease with in-ground grease trap and hood system in Roswell.  What is second generation space?  It means this restaurant space for lease was previously operating and open. The great thing about opportunities like this is the existing infrastructure in place makes your build out way easier! This restaurant space for lease is in a heavily populated area with high traffic counts, and pure potential! Bring your offers.  This one won't last. 

 

  

  

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A Boca Raton listing priced to sell made the top five, bringing Florida into the mix. This newly remodeled restaurant for sale in beautiful Broward County Florida is just minutes from the beach, how could it not be popular? With a money-making concept and a fully equipped kitchen near two universities, this restaurant has a recipe for success that’s hard to beat!

 

 

 

 

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Much like the listing on the top of our list this month, this restaurant space for leasee has amazing potential! Just a short ride away from Metro Atlanta’s top attractions, and the build out is already done!  A fully equipped kitchen and front of the house means this space is turn-key ready, and just waiting for a new owner to step up to the plate.

 

 

 

 

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One of our three listings that’s a repeat on this list from last month, this sandwich shop in Tamarac, Florida is in contract! It was so popular that excited new owners have already swooped in to make it their own! This little sandwich shop will bring joy to the new owners, whether they continue the concept or bring a new one in.

 

  

 

 

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A first for us is a food truck on out top ten list! A profitable business, the owner is selling for family reasons, but understandably didn’t want the business to go to waste. Perfect for the Austin, Texas climate, this food truck even has a permanent location with no rent! This is an amazing opportunity and there’s no wonder that it’s so popular!

 

 

 

 

 

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This fully-equipped restaurant space for lease was one of three on this list last month, and we’re surprised to see them all back this month! With as popular as this lease space has been, it’s amazing that nobody has snapped it up and put their own concept in place! It hasn’t been on the market for very long, but with all the attention it’s been getting, we don’t expect it will stay on the market for too much longer!

 

 

 

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This next restaurant on our list has been popular with potential buyers, but that’s no surprise, since it’s been popular with guests for 23 years! The seller clearly knows the secrets to success, and he’s willing to share! This longstanding restaurant for sale comes with all the benefits of a well established restaurant, with none of the work to get it there, why would anyone decided they don’t want that?

 

 

  

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 Rounding out our list this month is a fully equipped Indian restaurant in the greater Atlanta area. In a 2400 square foot space, this restaurant has room for 80 guest inside and room for a further 10 guests to sit outside and enjoy the beautiful weather. With a full recipe band and dedicated staff that will remain, any new buyer could be making money immediately. 

 

Restaurants for Sale Near Me

From restaurant space for lease with buyers willing to take a risk to high value listings.  It's been a banner year for restaurant sales and the trend does not appear to be slowing down.  Want to see more great restaurants for sale like these?  Visit our inventory of nearly 300 listings online at wesellrestaurants.com.

 

 

 

 

Topics: Buying a Restaurant

Casting Call -- We Sell Restaurants Helping to Find Foodie Families for TV

Posted by Robin Gagnon on Jul 23, 2018 6:34:06 PM

Are you a Foodie Family with some serious chops!  A new TV show is being cast for ABC called Family Food Fight.  They are searching for families of three or more to go head-to-head in high pressure cooking challenges inspired by real home cooking and family food traditions. 

Put those aprons on and tell the kids to get moving!  It's time to apply.  You can compete to be America's #1 Food Family and win $100,000!  Guess what you can do with all that money?  That's right!  Buy a Restaurant! 

The casting director for this project has worked with the We Sell Restaurants team in the past.  His work includes shows like Fox's Hell's Kitchen and Kitchen Nightmares, ABC's, The Taste and Bravo TV's Top Chef.  Is it time your family made it on the screen?  His email to us says, 

FFF_Flyer_Nationwide (003)

" I'm seeking a variety of "foodie" families to compete on the show. "Foodie" in this sense means many things, but mostly that the families I'm looking for have members who all regularly cook, enjoy to do it, and can all hold their own in the kitchen. Beyond that, we're considering families of all kinds, whether they specialize in a certain style of cuisine (Italian, Moroccan, Southern, Southwestern, etc.) or technique/restrictive diet (BBQ, Vegan, Molecular Gastronomy, etc.)."

What are the requirements?  Here they are.  

  • Families from every culture, creed and background from anywhere nationwide are welcome. .
  • You must be U.S. Citizens with at least 4 family members over the age of 18.
  • You can't be professional cooks or have worked in food preparation in the past seven years. 

The official press release from ABC asks, "Can Your Family Handle the Heat?"  Based on Australia’s hit format and hosted by restaurateur, food maven and New York Times best-selling cookbook author Ayesha Curry, “Family Food Fight” will feature eight families from across the country sharing a common kitchen and a common goal: to claim the title of America’s No. 1 Food Family and take home a $100,000 cash prize. Family teams will pull out their best culinary moves in the kitchen, serving up authentic family dishes and drama. Tapping into each family’s uniquely diverse cultural heritage, along with their countless culinary influences, “Family Food Fight” will take homestyle cooking to a new level as family recipes rich in tradition and shared over generations are put on display.

Want to pop into an open casting call?  The dates and times are below:

OPEN CASTING CALLS:

Los Angeles, California
Sunday, July 29, 2018
12 p.m. – 4 p.m.

Chicago, Illinois
Saturday, August 11, 2018
12 p.m. – 4 p.m.

New York, New York
Saturday, August 18, 2018
12 p.m. – 4 p.m.

Families must fill out the pre-registration paperwork in advance of the open call by visiting familyfoodfightcasting.com. They strongly encourage all family members to attend open call auditions; however, if somebody is unavailable, there is a contingency for that.  Don’t forget to bring your signature dish!

ONLINE SUBMISSIONS:
If you are unable to attend an open call, families can upload a video submission (via the pre-registration form at familyfoodfightcasting.com). Completed applications and video submissions must be received by August 17, 2018, to be considered. If selected, producers will reach out with additional information.

Keep the team at We Sell Restaurants posted if your family makes it to the show.  We'll be pulling for you! 

 

Topics: Buying a Restaurant