Advice for Buying a Restaurant and Selling a Restaurant

Report Shows Industry Sales Improving Slightly -- Restaurant Brokers Weigh In

Posted by Robin Gagnon on Jul 21, 2017 12:41:11 PM

Recent headlines about the restaurant industry, in particular the fast casual segment, have not been pretty.  In all, national results have unfortunately, been in a slump for the past six quarters.  June finally saw a turnaround according to the latest report from TDn2K's Restaurant Industry Snapshot.  

The Restaurant Industry Snapshot report show that  June's sales and traffic growth were the best monthly performance since January, and the second quarter of 2017 posted the best results since the second quarter of 2016.  What's causing the change?  For one thing, we're beginning to anniversary a prior year bad performance.  That means we're posting better numbers against a weak 2016.  In the restaurant broker’s opinion, we’re also seeing operators confront lagging sales and lower traffic counts and work to improve both. 

Crowd final.jpgOwners and operators are working hard to both improve traffic and raise sales by focusing on getting outside the four walls of the restaurant.  Many more stores are opting for multiple delivery options. They aren’t delivering their own food any longer and they now use multiple services to get more meals out the door.  Their opinion is that if the business won't come to them, they will make sure the food can get to the homes.  The restaurant brokers are also seeing a stronger push for catering, another way to get sales ringing on the POS system.  

We are also seeing a large increase in the use of promotional efforts ranging from charitable tie-ins, social media contests, limited time offers, couponing and more.  Is it working?  When traffic grows, we'll say for sure this is working.  According to the latest report, traffic declined by 3.1 percent in the second quarter, a 0.6 percent improvement from the first quarter. Overall, same-store sales fell 1 percent in June and in Q2 2017, compared to a first-quarter same-store sales drop of 1.6 percent. 

The fact that average guest checks grew 2.2 percent increase over last year also signals an attention to training and detail in house.  We are not seeing wholesale price increases so up selling the menu and putting higher prices on specials is paying off as guest checks creep up.  According to the report, check averages have been growing slowly since 2015, when average checks rose by 2.8 percent.

Overall, in keeping with many of the articles we’ve been reading, fast casual was the weakest-performing segment in the second quarter.  There is definitely an overpopulation of this style dining and we see even more thinning of concepts and chains still shedding units over the next 24 – 36 months.

On an interesting note, fine dining and upscale casual were the two segments with positive sales in the second quarter, and have been the best performing segments this year.  Does that mean the customer is ready to go back to full service?  It may only signify they are having fast casual delivered through one of the concepts like UberEats or Zifty and when they choose to dine out, they want a full service experience.

Overall, the quality of the experience at the store level will commit the customer to the concept and keep them coming back.  There is significant competition for the food dollar but the consumer share of dollar eaten out of the house has been rising for years and that trend shows no sign of slowing down.  Operators may need to be more creative in order to keep market share in a crowded field.

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Topics: buying a restaurant, selling a restaurant

Do Pro Athlete's Make Good Restaurant Owners?

Posted by Robin Gagnon on Jul 17, 2017 12:12:58 PM

It seems you can’t read an issue of Franchise Times without learning of an athlete who’s invested in the franchise restaurant industry.  The restaurant brokers have interviewed and spoken with many former national level athletes on the way to restaurant ownership.  Here’s what we learned about the parallels and pitfalls of entering the restaurant business as you head out of the professional sports arena.

What are the advantages of playing professional ball and then coming into the industry? How about money?  Professional athletes have an advantage because they bring a lot of money to the table.  What else do they bring? Let's look at the skill set from someone who’s played competitive ball.  First, they have resilience and drive.  You don’t make it to the big leagues without a refusal to fail.  How many restaurant owners will blame the economy, blame the government, blame minimum wage, blame everything but themselves instead of buckling in and having that drive and refusal to fail. 

Here’s another skill kept sharp by those in the major leagues. The ability to learn and adapt.  That’s a skill everyone needs no matter what part of your life you are in professionally or personally.  That’s especially true for restaurant owners who five years ago had a busboy taking deliveries and no social media accounts versus today’s world where you’re fighting for market share with delivery companies and your stock rises or falls with your Yelp ratings. Pro final.jpg

Another skill needed by those leaving the professional league to become restaurant owners is the ability to reinvent themselves.   The restaurant business is fluid and changing.  There are those that peg the NFL as the “Not for Long” league.  Athletes know their body is only going to last for a short period of time.  They are looking for that next investment and know they may have to reinvent themselves within 24 to 36 months.

Another reason a professional athlete’s skill’s transfer to the franchise side of the restaurant business is because they know how to run the plays.  There are plenty of parallels to the franchise restaurant industry where someone else has already put a game plan together.  They learn how to execute it at the very highest level. They practice it, they commit to it and then they do it over and over again.

And oftentimes people will feel a little bit constricted by franchise but on the other hand that kind of operational side of things can be your safety net. And the reality is some folks are just not ready to go it alone. For a professional athlete used to executing against a playbook, a restaurant franchise may be just the thing.  Buying into a franchise gives you the safety net the process.  You get great training, training, the rule book and playbook for every single element of the operation.

For many athletes, they know their name will fade away at some point. We had one athlete tell us, "You can't rely on the roar of the crowd.”  And That's true whether you operate one restaurant, 15 franchises, or many more.

Do professional athletes make good restaurant owners?  They absolutely can if they have the skills we just outlined.

Are you a professional athlete looking for franchise restaurants to buy?  Check out our inventory at this link online. 

 

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Topics: buying a restaurant, selling a restaurant

Certified Restaurant Brokers Steve and Cyndi Weinbaum On the Radio

Posted by Robin Gagnon on Jul 13, 2017 11:19:23 AM

What happens when a radio show is seeking experts on the culinary scene in Atlanta?  They reach out to the restaurant brokers! Steve and Cyndi Weinbaum of We Sell Restaurants were recent guests of Business RadioX along with Seth Gragg of Thrasher Coffee Company and Paul McKeon, CEO of Team Building with Taste, a hospitality company he co-founded in 2012.

The players assembled on the air on June 29 and shared their insight and expertise in the culinary world.  Each of the guests, including husband and wife Restaurant Broker Team - Steve and Cyndi Weinbaum, along with McKeon and Gregg offered their take on the current business climate and their opinion on future trends.  Will the pace of fast casual continue to dominate the industry or is there a return to full service?  Will space (currently at a premium in Atlanta) ever be available for the best locations (no!)? 

The full radio interview can be downloaded live at this link.  

The group, pictured below included Paul McKeon, the CEO of Team Building with Taste, a hospitality company he co-founded in 2012. McKeon and his team have merged their love of food with their business experience building and running high performance sales and marketing teams. With custom team building kitchens in Atlanta and Dallas, Team Building with Taste has become the preeminent culinary team building program in the U.S. To learn more about Team Building with Taste, you can visit their website. You can also follow them on LinkedIn, Twitter and Facebook.

Seth Greg parlayed his love of coffee into his role as VP of Business Development with Thrasher Coffee Company where he uses an extensive background in sales and operational management. Seth has been instrumental in the growth of Thrasher Coffee Company.  The firm specializes in roasting responsibly-harvested beans and supplying premium, fresh, small-batch coffee.  Their discerning customers are seeking the experience at an affordable price and the firm says they, "offer one-of-a-kind roasts backed by an unparalleled commitment to quality and service."

Steve and Cyndi Weinbaum are a husband and wife team who put customer committment first in representing buyers and sellers for restaurants in the We Sell Restaurants database. 

 

CulinaryAtlanta2017.06.16-768x432.jpgSteve is a licensed real estate salesperson and Certified Business Broker. He has over 25 years of experience working with retail, dining, and financial industry leaders with a focus on Marketing, Business Analysis, and Relationship Management. The importance of establishing open and honest rapport with all his clients is, and will continue to be, paramount.

Steve has the ability to quickly and accurately review and evaluate financial data. This skill enables him to provide sound valuation feedback and business guidance. He has years of experience negotiating complex business to business contracts. Steve worked with most of the major Casual Dining and Quick Serve Franchise brands to help grow sales and customer engagement.

As a Certified Restaurant Broker, Steve is closing an average of two businesses per month and is skilled in complex lease negotiations.

Cyndi is a licensed Real Estate Agent who has been representing Buyers and Sellers for over a decade. And while her experience has been primarily in the residential market, both resells and new construction, her ability to negotiate complex contracts and perform valuation analysis also serves the commercial real estate and business community.

She is a certified negotiation specialist and has attended many workshops and seminars on sales and marketing and is a lifetime member of the Million Dollar Club. She has also received instruction and testing leading to designation as a Certified Restaurant Broker.

Cyndi sharpened her negotiating and business analysis skills as a buyer for Macy’s where she collaborated on multifaceted deals in order to maximize return and further developing her ability to quickly and accurately review financial data to evaluate value and drive sales.

As a Restaurant Broker, Cyndi is now working with restaurant owners to accurately value, market and sell their restaurants for maximum value. She is also helping buyers identify the right business opportunity based on their financial goals and objectives. You can follow them both on LinkedIn, Twitter and Facebook.

Click to download the full 50 minute video at this link to hear the entire interview. 

Radio X.jpg

 

 

 

Topics: buying a restaurant, selling a restaurant

Restaurant Franchise Sales Growing -- New Deals Announced!

Posted by Robin Gagnon on Jun 26, 2017 12:34:16 PM

The Restaurant Brokers have scoured the internet, press announcements, twitter feeds, Franchise Times and more to bring you the latest deals we've seen for franchise sales and development units.  Here's what we've found.

Church’s Chicken®  has entered into a multi-year development deal with Goalz Restaurant Group, LLC to develop 20 Church’s Chicken restaurants per year in six states. The agreement, which will affect expansion in Florida, Kentucky, Ohio, Colorado, North Carolina and South Carolina, is the largest ever with a single operator.  That's a lot of brand new franchise units in those markets and very exciting news. 

The Carolinas look to be a hotbed of recent restaurant franchise sales development.  Here's a few of the many deals announced for the state. 

Area developer Steve Alie opened his first location of Cottage Inn Pizza-and the brand's first location in Greensboro, North Carolina earlier this month.  He plans open up to five additional locations in the state within the next four years. He's also planning to sell the rights to 15 more stores to qualified franchisees throughout the Carolinas over the next decade.  

In other North Carolina development, Famous Toastery's first two franchisees have signed on for additional locations of the North Carolina-based breakfast and lunch restaurant. Jason and Michelle Serkin have committed to a total of five locations in the York County, South Carolina area, while Dean Kessel will open 10 locations across Cary, Raleigh, Asheville and Greensboro, North Carolina. Additionally, Keith and Dawn Martin agreed to open three units in Jacksonville, Florida, and David Glista will bring two locations to Colorado.  

Franchise Growth.jpgFirst Watch finalized agreements with several operators to grow their concept in North and South Carolina, Georgia, Louisiana, Mississippi, Missouri and Arkansas in more growth for the Carolinas.  

Hwy 55 Burgers, Shakes & Fries, a North Carolina-based company opened its third location in Georgia this month.  Master franchisees John Greene and Craig Smith of Southern Kitchens Restaurant Group led this charge.  Their newest restaurant is in Waycross. Greene and Smith also have Hwy 55 locations in South Carolina.

Moving from North Carolina to the Northeast, a brand new incentive program has sparked some new development of multi-unit deals for Firehouse Subs'  in the Northeast.  The brand has commited to cut franchise fees by 50 percent for any market in the Northeast, from the greater Philadelphia and New York City areas to Rhode Island and Massachusetts.  That led to a deal by Ilker Dinc and Mark Farrell to develop five restaurants each in New Jersey, and Syed Alam to agree to open three units in New York.   In addition to those deals in the northern part of the country, we also learned that Jessica Christen is on board to develop four restaurants in New Orleans along with Quinton Pruitt, who plans to open three locations in Oklahoma, and Michael Lavee, the brand's newest Canadian multi-unit franchisee, who has agreed to open two restaurants in Ontario

In other news, locations are spreading one state at a time.  Wayback Burgers  has announced that their international master franchisee has opened his first U.S. location of the better burger restaurant in Woodland, Washington, this spring.

Colorado is getting ready for a massive sugar fix!  Shipley Do-Nuts is planning to open 58 franchised units in the state, starting with Colorado in a huge deal announced last month.

Potbelly Sandwich Shop is coming to California. The Chicago, Illinois-based company signed an agreement with Sameer Bhatia to bring four shops to South Orange County over three years, marking Potbelly's entry into the Golden State.  His first location is expected to be open within a year near the towns of Irvine, Newport Beach, Laguna Beach, Walnut or Lake Forest. 

NPC announced that it has acquired 140 Wendy’s restaurants, previously operated by DavCo Restaurants, LLC, from a subsidiary of The Wendy’s Company. As part of the transaction, NPC has agreed to remodel 90 acquired restaurants in the Image Activation format by the end of 2021 and build 15 new Wendy’s restaurants by the end of 2022.

Sacramento, CA  Sacramento is about to get its first taste of Bennigan’s, the iconic brand beloved across the globe for its friendly Irish hospitality and chef-driven American fare.

Nashville, TN  Captain D’s, the leading fast casual seafood restaurant, announced its newest location in Zachary, Louisiana is officially open. Located at 5353 Main Street, the restaurant is 2,800 square feet, with drive-thru, and showcases the brand’s most recent beach design. The new restaurant has created 20-25 jobs in the Zachary community.

Bojangles' as the Southern-style restaurant franchisor announced a multi-unit development agreement with new franchisee MSR Restaurants, LLC of Mitchellville, Maryland. The deal will bring several new Bojangles' to the Washington, D.C. metro areq.

The Hurricane Grill & Wings concept in Kansas, is part of a 12-site development agreement. The first, a Hurricane Sports Grill full-service restaurant, is set to open in Wichita. Other versions of the Florida-based chain are the standard Hurricane Grill & Wings, and Hurricane BTW (burgers, tacos and wings), a smaller fast-casual concept.

Dat Dog, a New Orleans gourmet hot dog and sausage franchise with four corporate units, signed a multi-unit deal for the Houston, Texas market. The agreement with B&G Food Enterprises will bring 25 Dat Dog restaurants to the metro area over the next several years.

New York-based Carrols Restaurant Group is adding 17 Burger King locations in Maryland to its portfolio by acquiring Republic Foods. The deal will offer "a strategic entry point for us to further expand our presence in the mid-Atlantic region going forward," said Carrols CEO Daniel Accordino

Cowboy Chicken and Franchise Restaurant Concepts Group (FRC Group) announce today the signing of three new lease agreements to open restaurants in Ankeny, Iowa (802 SE Oralabor Road), Manhattan, Kansas (322 Southwind Road) and Sioux Falls, South Dakota (2700 W. 41st Street). These three restaurants are part of a franchise agreement signed earlier this year with FRC Group to open 14 Cowboy Chicken locations across Iowa, Kansas and South Dakota. There are currently 21 units of the fast casual chain in Texas, Oklahoma, Nebraska, Louisiana and Alabama.

Across the Border,  Wing Zone® has signed a major expansion deal to increase its international presence. The agreement, signed with The Philippines-based Viva International Food & Restaurants, Inc. and facilitated through JNM Dining Concepts, Wing Zone’s South Asia Master Franchise, based in Singapore, will result in the building of up to 50 new Wing Zone units across The Philippines over the next 10 years.

The growth of restaurant franchise sales and development signals a healthy industry that shows no signs of slowing down!  For franchise resale locations - open and operating franchises for sale, check out listings offered by the restaurant brokers at the link below. 

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Topics: buying a restaurant, selling a restaurant

A Day in the Life of a Restaurant Broker...What are they doing anyway?

Posted by Robin Gagnon on Jun 15, 2017 9:35:04 AM

50032-Dominique_2011_cropped_for_website_1.jpgHave you ever wondered what your restaurant broker is actually doing every day? Here's a day in the life of Restaurant Broker Dominique Maddox who shared these thoughts.

Dominique recently had a conversation with his wife telling her how mentally tired he was after a tough day as a Certified Restaurant Broker when she returned from work. His wife said, “You sit in front of your computer all day, what did you actually do today?" Here's his log of his actions for the day he was kind enough to share.  

5:00 am – Wake up and put on the 1st pot of coffee. Review my business to-do list for the day and add items

5:30 am-  Go to the gym and go beast mode to get ready for the day

7:30 am – On the road to take pictures of a restaurant I recently listed for sale. I must arrive before the back of the house staff arrives so they will not be suspicious.

8:45 am- After battling through the high-dense Atlanta traffic, I make it to my destination 42 miles from my home.

9:15 am- Pictures are finished and I must conduct a conference call between a buyer and seller to discuss expenses on last year’s profit and loss statement while sitting in my car. 

9:40 am-  While still sitting in my car, I get a call from a seller he is not happy. The seller does not want to sign the 4506-T form which allows the bank to request the sellers tax returns for a buyer to get an SBA Loan based on the business financials. The seller discloses to me they need to amend their tax returns because they filed inaccurate numbers.

9:50 am – Receive call from leasing representative the landlord will not offer my client more Tenant Improvement Money to move forward with the lease. The landlord will only offer 2 free months of rent instead of 3 months.

11:00 am – Arrive back at home office to respond back to missed emails and calls.

11:25 am – Review my HOT Report and touch all my pending deals with updates or reminders

11:45 am – Receive call from a financially qualified candidate. Buyer needs help understanding the price valuation of the restaurant. Buyer does not understand the definition of add-backs for a price valuation.

12:00 pm- Receive email from buyer that request to see a lease space I’m advertising. I call the buyer and they don’t want to show proof of funds, business plan, or menu. They just want to see the location first and then decide if they want to move forward. Let them know landlord wants to see those documents to qualify them as a tenant before showing tghe space.

12:45 pm- Receive an email from a buyer in South Carolina, they want to make an offer on a Franchise Restaurant I have listed in South Carolina. The buyer requests a copy of our Asset Purchase Agreement. I draft the Agreement and send for review.

1:30 pm – Follow up with Dickey’s BBQ Pit to confirm buyer’s Discovery Day date to attend at Dickey’s Headquarters.

2:00 pm – Conference call with Wich Wich, buyer, seller, and Area Representative to discuss transfer checklist

2:30 pm-  Schedule a meeting between buyer and seller at restaurant for Friday

2:45pm- Follow up with Firehouse Subs Area Representative to discuss training day for approved candidate.

3:00 pm – Review an 80-page lease to find out the lease expiration, option renewals, security deposit, CAM charges, and type of restaurants allowed in the shopping center

3:30pm- Follow up with closing attorney on debits and credits for Closing Settlement Statement.

3:45pm- Receive a referral for a Firehouse Subs seller who wants to sell from my current client

4:00pm – Assist buyer with working on bank projections for loan approval. Review business plan and give feedback for improvement.

4:45pm- Follow up with listing leads and search for more leads

5:30pm- Work on Science Project with my 5th grade daughter Amaya

7:00 pm- Draft emails to send out in the morning

7:30 pm- My wife arrives at home!

7:45 pm- Receive text message from seller, asking for an update on buyer activity for their listing.

Dominique writes, "To be an excellent Restaurant Broker you must multi-task and be the quarterback of the deal. Nobody wants to get the deal done more than the Broker.  It can be the difference between feeding your family ground beef or filet mignon.  Yes, most days I’m drained from my daily activities and I’m constantly thinking about items that need to be complete on each deal at night. The satisfaction I get from this career is knowing I help people realize the American Dream of Business Ownership. Tomorrow I will get up and do it all again."

 

Domminique Maddox is a licensed Georgia real estate agent and graduate of Morehouse College which he attended on a football scholarship.  He brings that same competitive spirit and energy to the field of restaurant brokerage. Dominique received a Bachelor of Business Administration in Business Management from Morehouse College.  He has worked in mortgage financing, real estate, business to business sales, and Restaurant Brokerage Sales.

Dominique was named the recipient of the Georgia Association of Business Broker "Rookie of the Year" award from the organization for 2011.Dominique was also elected as a Director to the Georgia Association of Business Brokers for 2012. Dominique has undergone extensive training for restaurant brokerage and has earned the designation as a Certified Restaurant Broker. View his listings online at this link.

 

 

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

Restaurant Brokers Designated as Industry Experts by Business Brokerage Press

Posted by Robin Gagnon on May 29, 2017 5:07:55 PM

Restaurant Brokers Eric and Robin Gagnon have been designated by Business Brokerage Press as Industry Experts yet again for 2017.  The Industry Expert program is recognized across the nation for brokers that have in-depth knowledge of a particular type of business.  It's based on a questionnaire distributed by the group that demonstrates specialized skill in an industry and transaction experience.  . 

Industry_Expert_Logo.jpgEric and Robin Gagnon will be included in the Industry Expert section of the Business Reference Guide published by Business Brokerage Press or BBP.  Experts in this program must qualify through demonstration of in-depth knowledge for a particular type of business.  Only those qualified and approved by BBP may be listed as a source with expert knowledge in their prospective industry. 

The Restaurant Brokers, Eric and Robin Gagnon, have both qualified for this honor for multiple years in both Restaurant Sales and Franchise Resales.  The dynamic duo and husband and wife team are the founders of We Sell Restaurants, the nation's largest restaurant brokerage practice and franchise brand.  

ERIC GAGNON is the founder and President of We Sell Restaurants and wesellrestaurants.com.  He is the nation’s leading restaurant broker.  Eric is an industry expert in restaurant sales and valuation.  He is a frequent speaker, writer and co-hosted the nation's only radio show devoted to the restaurant industry for several years.  Eric is co-author of Appetite for Acquisition, an award winning book on restaurant brokerage published in 2012 and named "Best of" by Small Business Book Awards.  Eric began his career in the financial services industry for Bank of America, Bank of New York and big five accounting firm, KPMG before launching the nation’s premiere restaurant brokerage firm and restaurant brokerage franchise.  Eric is member of the International Franchise Association, the Georgia Association of Business Brokers and the Business Brokers of Florida.  In addition, he serves on the Executive Board for the Southeast Franchise Forum and the Membership Committee of the International Business Brokers Association.  

ROBIN GAGNON is the Co-Founder of We Sell Restaurants and the firm's Chief Marketing Officer.  Robin is one of the most prolific restaurant brokers in the industry and is a franchise resale specialist.  She is also a writer and speaker that has addressed the International Business Broker Association, International Franchise Association, Sysco Food Show and multiple colleges and universities. Robin's expert articles appear online and in print across the country. She co-authored Appetite for Acquisition, an award winning book on buying restaurants that was published in 2012 and named "Best of 2012" by Small Business Book Awards. She is the co-host of the long-running radio show "We Sell Restaurants."  Robin is a member of the International Franchise Association and serves on the Women's Franchise Committee.  She is also the Chair of the Women's Franchise Network - Atlanta Chapter.  

These veteran industry experts have defined the term “Restaurant Brokers” with their unmatched experience, knowledge and count of restaurants sold.  Impactful speakers, they have presented workshops and served on multiple panels for organizations nationwide where they share their expertise. They created and developed training for brokers to obtain the credential of Certified Restaurant Broker.

The two have trademarked their brand, “We Sell Restaurants” and are franchising nationwide. They share their knowledge through one of the most extensive training programs available to the industry. Their multi-platform training program leads to the nation’s only Certified Restaurant Broker designation.

For nearly 34 years, Business Brokerage Press has worked to benefit business brokers through valuable publications, services and resources specific to the business brokerage profession.  In addition to their Industry Expert program, they publish source books for the industry including The Complete Guide to Business Brokerage; and the Business Reference Guide, first published in 1991.

The Business Brokerage Press legacy extends to the International Business Brokers Association (IBBA) as the founders were instrumental in launching this international organization.  For over 10 years, Tom and Barbara West of Business Brokerage Press had a hand in running the Association until they turned it over to a management association company so they could focus their time and attention full time on BBP.

For more information about We Sell Restaurants, visit wesellrestaurants.com or for franchising information, visit wsrfranchise.com

  

 

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

Top 10 Restaurants for Sale in April by the Restaurant Brokers

Posted by Robin Gagnon on May 12, 2017 1:56:45 PM

What’s the pattern of views of restaurants for sale for April 2017?  It was a month of strong activity by buyers showing signs of Spring Fever excited by a new crop of listings.  South Florida topped the chart with activity on multiple listings while the Atlanta and Austin markets were also strong performers for the restaurant brokers this month.

 As always, we weigh the activity on listings based on the phone calls, response to our email blasts, signed confidentiality agreements and connections with our restaurant brokers.

Topping the list of restaurants for sale with the most views is a SUPER priced Italian Restaurant located in Broward County. This location has been hot since hitting the marktet less that 70 days ago. Priced at under $50,000 this listing has attrached the most buyers for the month in the We Sell Restaurants inventory.  

 
Listing ID:5311 Restaurant Broker Ken Eisenband    
Pizzeria for Sale -- Fast Casual Italian Restaurant in Broward County
Lease: Expires January 31, 2018 plus 2 three year options
Monthly Rent: $4612.78
Inside Sq. Ft. 1716
Outside Sq. Ft.
Price:$45,000
City:Tamarac

Ken Eisenband
(561) 350-3365

South Florida stayed in the mix with this Broward County listing attracting buyers.  They also loved this Italian Restaurant for sale that can retain its current look or convert to any concept.  This one made an impact on those looking to make their dreams of restaurant ownership come true. With an incredible monthly rent of less than $3000, this location won't be around much longer

Listing ID:5228 Restaurant Broker Ken Eisenband    
Restaurant for Sale in Ft. Lauderdale Can Convert to Any Concept
Lease: Expires July 31, 2017 with options to be negotiated
Monthly Rent: $2980
Inside Sq. Ft. 1700
Outside Sq. Ft.
Price:$58,000
City:Fort Lauderdale

Ken Eisenband
(561) 350-3365

The top three listings of the month had one thing in common -- Italian was on the mind.  This profitable location in the very desirable Rosewell, Georgia area garnered plenty of looks, calls, signed CA's and views on the Restauant Brokers top rated website.  The $1700 monthly rent is unheard of! No wonder it has already has multiple offers.

Listing ID:5441 Restaurant Broker Steve Weinbaum    
Profitable Italian Bistro and Pizza Business for Sale in Downtown Roswell!
Lease: 5 years
Monthly Rent: $1700 including CAMS
Inside Sq. Ft. 1600
Outside Sq. Ft. n/a
Price:$139,000
City:Roswell

Steve Weinbaum
(770) 714-4552

Austin Texas Restuarant Broker Dave Duce jumped into the top ten list with a unique opportunity in his market.  Buyersare clicking away to find out more. This Bar for Sale in Austin serves beer, wine and small plates.  This one was on the market for only seven days in April before landing in the top 5.  Buyers should prepare for a bidding war on this one!

isting ID:5469 Restaurant Broker Dave Duce    
Bar for Sale in Austin Serving Beer & Wine - Expand to Craft Beer & More
Lease: expires Nov 2020 + 5 yr option
Monthly Rent: $1850
Inside Sq. Ft. 737
Outside Sq. Ft. 60
Price:$99,995
City:Austin

Dave Duce
(512) 773-5272

Restuarant space for lease often creeps into the Top 10 and this Johns Creek, Georgia empty location was no exception.  Those ready to launch from the ground up liked the looks of this opportunity.  The very manageable 1200 square feet allows to keep the rent down monthly but still room for plenty of seats. What are you waiting for?

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

Cyndi Weinbaum
 

Space for lease with equipment? Yes! This does not come along every day. This former Pizza place is flipping for a new owner! Sign the lease today and start cooking tomorrow.

Listing ID:5208 Restaurant Broker Ken Eisenband    
Fort Lauderdale Restaurant Space for Lease includes Kitchen Equipment
Lease: Negotiable with Landlord
Monthly Rent: $7393.50
Inside Sq. Ft. 2700
Outside Sq. Ft.
Price:$0
City:Fort Lauderdale

Ken Eisenband
(561) 350-3365

 Two for One!  This sounds like a Happy Hour deal but instead it's a restaurant for sale group also found in Austin Texas.  This features a long term lease and loyal clients.  The two restaurants for sale by Certified Restaurant Broker Dave Duce are turnkey ready for someone looking to start earning a profit.

isting ID:5465 Restaurant Broker Dave Duce    
2 Restaurants for Sale! 6 Figure Earnings - Sandwiches & Catering
Lease: expires March 2022
Monthly Rent: $1326
Inside Sq. Ft. 3200
Outside Sq. Ft. 200
Price:$299,000
City:Austin

Dave Duce
(512) 773-5272

What happens when we list a restaurant for sale with rent at just $1000 per month?  The phones go wild!!!  This crazy low rent in Inman Park is fully equipped and ready for a new concept.  The 1000 square foot space is perfect for a take-out or delivery concept and Restuarant Broker Steve Weinbaum's phone has been blowing up with inquiries.  Are you ready to take this one off the market?

Listing ID:5193 Restaurant Broker Steve Weinbaum    
Inman Park Atlanta Restaurant For Sale - $1000 per Month Rent!
Lease: 3 years with 2+ years remaining
Monthly Rent: $$1000 plus $1400 annual property taxes
Inside Sq. Ft. 1000
Outside Sq. Ft. n/a
Price:$49,990
City:Atlanta

Steve Weinbaum
(770) 714-4552

All in all, another record breaking month of activity for the restaurants fo sale across the country.   The southeast is booming in restaurant sales as evidenced by all this activiy on the restaurant brokers listing.  Want to see these and many other restaurants for sale?  Check out our full list of restaurant for sale listings online at this link. 

 

Topics: buying a restaurant, selling a restaurant

A Restaurant Buyer or Seller’s Guide to Valuation by the Restaurant Brokers

Posted by Robin Gagnon on Apr 25, 2017 9:01:33 AM

While everyone has some idea how much they want to pay or price a restaurant for sale, the truth is, selling a restaurant is a math problem with a right and wrong answer

What is the methodology for restaurant valuation?  For lenders and sophisticated restaurant brokers familiar with the process it’s the Income Valuation Method.  This is the most favorable and trusted method used to value restaurants for sale.  In today’s lending environment, this is how we establish value and secure financing on a business.  A restaurant for sale with solid profits that fits the SBA criteria to both satisfy the buyer’s lifestyle needs and satisfy the debt payments with a 25% cushion will qualify for lending.    

 For that reason, the Income Valuation Method provides the most acceptable method of valuation for banks, lenders and individuals in assessing how much to pay for a restaurant.  In a situation where a restaurant buyer is paying cash, this helps to reduce fear of the transaction as the business has a proven track record. 

calculator-988017_960_720.jpgA restaurant for sale with strong books and records, assessed under the Income Valuation Method has the highest number of potential buyers and hence commands the highest possible price.  An expert  restaurant broker can go through the Profit and Loss statement along with tax returns to find the Seller’s Discretionary Earnings (SDE) or owner benefit that is customarily accepted by lenders to value the business.   This includes net income PLUS reasonable and customary add-backs.

Add Backs are the benefits realized by a seller today that go away when he or she leaves the business. For example, owner’s 1099 or W2 earnings are calculated as Add Backs.  Any personal expenses such as a cell phone or auto expense for the benefit of the seller are also “added-back” to the bottom line to calculate the earnings.

What is not allowable for “add-back” purposes are efficiencies a new owner could potentially achieve that the current operator hasn’t.  It should factor in your decision to buy but should not be calculated in the pricing of any    restaurant for sale.  The entire purpose of the add backs is to calculate owner benefit and ultimately pricing of the business.  If you can identify strategies to be more successful in the future than the current owner, that benefit belongs to you as a buyer, not to the seller in the pricing of the business. 

Once the Seller’s Discretionary Earnings is appropriately determined, then it becomes the basis for a “multiple” for pricing    restaurants for sale. Every buyer wants the answer to the question, “What’s the multiple for restaurant pricing?” and the response rarely satisfies anyone.  In general, restaurants for sale can be offered and sold somewhere between 2.5 and 3 times times earnings, with market factors adjusting this up or down.  For purposes of this article, we are limiting our discussion to single restaurant units.  Multi-unit sales (anything above two, especially franchise) changes the multiple significantly and requires a whole different analysis and pricing model.

“How much to pay for a restaurant for sale? ” can be affected by any of the following variables including:  strength of books and records, saturation of concepts in the marketplace, seasonality, location,   comparable Sales Information or “comps,”  franchise or  independent offering, geography and competition. 

Strong restaurant brokers that know the market and should be able to share exactly where a restaurant is priced based on the multiple and why.   Ask some questions of your broker to be certain they fully understand restaurant pricing.  If you’re not satisfied with the response, find an expert restaurant broker to help you buy a restaurant.

Our restaurant for sale listings are all valued using the same methodology and can be found at this link.

Check Available Listings

Topics: buying a restaurant, selling a restaurant

Restaurant Brokers Expanding Coast to Coast - Attendees at We Sell Restaurants University

Posted by Robin Gagnon on Mar 23, 2017 8:30:46 AM

We Sell Restaurants is expanding coast to coast with a new class of training candidates enrolled in We Sell Restaurants University. 

Rob Morrison.jpgWe Sell Restaurants Ft Lauderdale is welcoming Rob Morrison to their team. A former U.S. Marine, Robert is currently a Board Member of the Broward County Veterans Association of Real Estate Professionals (VAREP), a non-profit organization dedicated to increasing economic opportunities for active-military and veteran communities.  

Rob studied Communication at the University of Miami and had a long, successful career as an award-winning journalist in New York City. Upon relocation to South Florida Rob entered the real estate business. Rob’s experience in commercial real estate has aided his clients greatly.  He will be completing We Sell Restaurants University next week and will begin work with Ken Eisenband, the franchise partner for this office.  E

Chris Morrison.jpgColorado Franchise Partner, John Jordan is also expanding his group.  His newest Restaurant Broker is Chris Gordon.  Chris has over two decades of experience in the restaurant industry and has proven himself to be an adept leader and skilled businessman.  A resident in the Denver South Metro area, some of his highlights through the years include working at The Fillmore Auditorium, Breckenridge Brewery, and most recently the Tailgate Tavern and Grill as General Manager. 

Chris entered the restaurant industry as a dishwasher when he was 15 years old, and worked his way up through the ranks to managing a multimillion dollar restaurant when he was just 19.  He has been a busboy, host, and cook, server, bar back, bartender, banquet captain as well as a corporate trainer.  He has served in leadership roles as both a Manager and General Manager for multiple operators.  Chris has worked on the Las Vegas Strip for celebrity chef Rick Moonen at Mandalay Bay and Del Frisco's Double Eagle Steakhouse.

As the General Manager for Tailgate Tavern he helped increase sales by over 50% the first year.  “We achieved this by completely redesigning the bar to function more efficiently, reducing the cost of raw materials, and creating incentives for the customers to spend more money.”

Scott Ruby.jpgAlso attending We Sell Restaurants University is the newest Franchise Partner, Scott Ruby.  Scott has expereince in both the front and back of the house along with first-hand knowledge of day to day operations and restaurant culture. Scott’s Food and Beverage industry experience evolved during his years in specialty restaurant management and as a Food and Beverage Director in Las Vegas, Nevada.
 
Scott’s experiences in the Vegas food and beverage mecca included the opportunity to be a key player on the grand opening team at the House of Blues, Mandalay Bay property, manage the House of Blues restaurant and in later years, he was recruited by Station Casinos.  In his tenure with Station Casinos as a Food and Beverage Director he was fortunate again to see expansion in opening both Sunset Station and Green Valley Ranch.  
 
In recent years Scott’s professional experience has been focused on operations, sales and marketing.   Having worked with the BNSF Railway, a fortune 100 company he served to grow and develop their market share.  Scott was honored to be chosen as employee of the year with this company thanks to his commitment to customer service and company culture.

The full class graduates on March 31 and will begin work in their markets immediately.  
 

 

Topics: buying a restaurant, selling a restaurant

Roly Poly Franchise Store SOLD in 60 Days by The Restaurant Brokers

Posted by Robin Gagnon on Mar 20, 2017 3:22:50 PM

The Restaurant Brokers at We Sell Restaurants announce the sale of the Roly Poly Fast Casual franchise in Cumming Georgia.

Roly Poly franchises offer an extensive menu with great taste photo 2.jpg and superior nutrition! Restaurant broker Robin Gagnon described the store as "Small enough that you will matter and big enough that you get volume buying power, strong systems and superior support."  The Award winning concept was designated a Hot Concept by Nation’s Restaurant News.

Entreprenuer and Restaurant Buyer Janet Jacks snapped up the location in under 60 days leading to a record fast closing.  Buyer Janet Jacks has owned several different businesses but like the opportunity to have a business that would be close to home. Located in the busy Atlanta metro area a short drive to work is always a benefit!

The very short time on the market was perfect for the company's founders and the operators of this corporate store that said, "Robin and We Sell Restaurants sold our location in Cumming in less than 60 days from start to finish.  We previously had the business listed with another broker for more than six months with no activity or communication from the agent.  We definitely recommend their services.”

The Roly Poly brand is a favorite of customers that are seeking a restaurant franchise for sale but don’t want the late hours, lots of employees, frying and complications.  This one is a lifestyle brand.  Certified Restaurant Broker Robin Gagnon represented the buyer and seller in this transaction.

Gagnon said of the location, "This was a great store in a vibrant neighborhood and growing community."  The demographics for the area show a total daytime population within a five mile radius of 132,196.  Average household income is six figures plus at $127,815. 
 
This particular location was a a stable and established store that's had a great customer base since 2014!  The reviews from the customers are incredible.  Restuarant buyers often seek established  franchise restaurants for sale because they give the purchasers the benefit of joining a brand that is already established.  The franchise brand expertise and support can guide new owners through the daily operation. Top that with your personal knowledge, your drive and your ideas and you get the perfect mix to run a successful restaurant.

Check out our current listings at wesellrestaurants.com.  More information on buying a restaurant can be found at this link where buyers can download our free book on buying a franchise restaurant.   The free report includes:  

  • How to find the best Franchise Resale deals
  • How Much to Pay for Franchises
  • Why an SBA loan is your Franchise Friend
  • Key Steps in the Franchise Resale Process
  • When to Apply with the Franchise & Why
  • Valuation Math for Franchises for Sale

 

 

Topics: buying a restaurant, selling a restaurant