Advice for Buying a Restaurant and Selling a Restaurant

Latest Franchise Deals Announced by Industry Press.

Posted by Robin Gagnon on Jul 20, 2018 2:04:25 PM

What are the latest franchise deals we're seeing announced in the restaurant industry?  It looks like everything from legacy brands like Taco Bell expanding with 400 units overseas to newer concepts like Go! Go! Curry who signed their first deal are all hitting the gas on growth in an economy fueled by consumer confidence, small business confidence and the tax cuts. 


We Sell Restaurants tracks growth of new restaurant franchise units from industry press releases and resources like Franchise Times.  If you know of other multi-unit deals in the pipeline, let us know!  Here's where we see new franchise restaurant deals expanding by concept around the country.

Red National Doughnut Day Social Media GraphicPizza remains a favorite and in particular, the create your own segment.  Fast-casual pizza concept My Pie signed a new development agreement to bring the emerging brand into the Alabama market. Rebecca Roland and Richard Meadows will open their first My Pie in Dothan, Alabama later this year. The couple owns and operates five fast-casual restaurants in Alabama, with Roland managing day-to-day operations for each business. Based in Scottsdale, Arizona, My Pie has nine locations open in four states.

John Clancy and his team at Smoothie King Midwest have signed an agreement to develop a stunning 60 locations, starting in Indianapolis and Palm Beach County, Florida. Clancy is a longtime Planet Fitness franchisee with 27 gyms in Ohio and Florida, and he also opened three Smoothie King locations with partner Bob Viani in Connecticut, New York and Florida in the past year under a separate development agreement.

Have you heard of this concept?  Duck Donuts, based in Pennsylvania, is growing in New Jersey.  The brand, which calls itself the fastest growing donut shp in the U.S. is adding stores in Bergen County, New Jersey, one in Hackensack and a second in Paramus area. Duck Donuts has 67 open locations with more than 140 in development. 

Another newcomer on the block Fast-casual concept Go! Go! Curry signed its first franchise development deal with Daxin LLC.   The brand features what it terms, "Japanese comfort food."  The concept features black, thick curry sauce over Koshihikari rice, a premium short grain rice, with very thinly shredded cabbage and Pork Katsu – a crispy, deep fried pork cutlet – all in a stainless plate that is eaten with a fork. Houston, Texas will be home to the first franchise location.  Shishen Li, co-founder and owner of Daxin, plans to open the first store in August. Go! Go! Curry has seven restaurants open in the United States, in New York and Massachusetts.

Two Scooters Coffee drive-thru locations will open in Spencer and Okoboji, Iowa, with the signing of a franchise agreement by Robb Steffes and Joshua Morris. The towns are part of the Okoboji lakes resort region in northern Iowa.

International expansion is on the mind of many brands.  These are deals for big unit counts where a developer is opening an entire overseas market.  Here are the two of the biggest franchise restaurant deals we've seen.

Legacy brand, Taco Bell has signed deals with groups in Brazil and Spain that call for the development of more than 400 total restaurants over the next decade. Sforza Holding Group, a private equity company based in São Paulo, Brazil, is set to open more than 200 Taco Bells in the state by 2027. The new agreement expands Sforza's existing partnership with Taco Bell. Led by founder and CEO Carlos Wizard Martins and his son, Taco Bell Brazil CEO Lincoln Martins, the group began working with Taco Bell International in 2016. In Spain, Casual Brands Group is also expanding upon a current partnership. CBG, led by CEO Ignacio Mora-Figueroa, has been working with the Taco Bell brand since 2008 and owns and operates 40 Taco Bell restaurants throughout Spain. With the new agreement, CBG guarantees that more than 200 restaurants will be built in the country over the next 10 years. 

Church's Chicken is growing it's international brand (Texas Chicken), in the Asia Pacific market.  They have signed an 80-unit deal with PT. Quick Service Restaurant to open and operate restaurants primarily in Indonesia. PT. QSR is the third Texas Chicken franchisee to enter the market, joining PT. Quick Serve Indonesia, which signed a development agreement earlier this year, and P.T. Cipta Selera Murni, which has been in the market since 1985 and has 59 locations. PT. QSR is a subsidiary of Singapore-based Envictus International Holdings Limited, which has a portfolio of restaurants, frozen foods, and sports supplements brands.

That's the latest on franchise restaurant expansion.  We'll continue to track the deals.  Meanwhile, if you're in the market for an existing franchise for sale, check out our listings online at this link. 

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Topics: Buying a Restaurant

How to Buy a Bar [Tips on Evaluating Cash Flow]

Posted by Robin Gagnon on Jul 6, 2018 9:59:25 AM

Buying a Bar does not have to be a risky situation. The team at We Sell Restaurants has these tips for you on confirming earnings.

Does the latest bar for sale listing on your screen seem too good to be true? It may be. Learn from the restaurant brokers the secrets of paying the right price,when you find a Bar for Sale.

First, let's deal with those bars for sale with "Cash" earnings. We are putting to rest the age-old hassle with how to set pricing in this article. The only legitimate way to value a bar for sale, is based on provable earnings.

Blue and Cream Just Sold Social Media Graphic (2)

Valuation Approach

What are Earnings and where are they derived?

  • Earnings are based off a company’s profit and loss statement.
  • Recast earnings include add backs, calculated to remove interest, depreciation, amortization and taxes from the net income number.
  • The result of this approach is the Seller’s Discretionary Earnings, the basis for lending.

Beware! This method does NOT work when the Bar for Sale listing states that they have “Cash Earnings” they will be using in the Valuation.

Why Cash Earnings Won’t Work

  • A listing reflecting cash, is generally, not provable.
  • A seller reflecting "cash earnngs" may be avoiding certain tax requirements like sales tax or income tax.
  • A seller avoiding sales tax or income tax may be paying employees "under the table" which means he is also breaking the law and failing to file appropriate employee tax filings.

Look out for brokers promoting this type of business online. If a listing says, "Cash to be proven by Seller," you can be inheriting a lot of issues.

Some Restaurant Brokers will not advertise or list this inventory, but simply offer them as an Asset Sale because they cannot be verified. An asset sale is an appropriate way to approach a bar for sale opportunity without books and reacords.  An excellent lease in a high value location and a liquor license may be enough to convince you to move forward and pay for assets.  Just don't back yourself into the corrner of paying for earnings that can't be proven.  Also, asset sales will typically not qualify for any type of lending. Only a bar for sale with verified earnings will make the grade for SBA lenders.  

What Issues are Associated with Cash Businesses?

  • Confirmation of Earnings - It's nearly impossible to verify earnings without working in the location for a period of time.  Even if you move forward on the basis that the earnings are real, you will realize additional expenses by converting this to a scenario where appropriate taxes are paid (both income tax and sales tax). This is definitely a buyer beware scenario.
  • Overpayment - The seller is being paid twice, for the same income. They have already received a HUGE benefit since they have avoided all the reasonable and customary taxes; for instance, State Income Tax, Federal Income Tax, etc. Now, they want to sell this bar at a premium.
  • Transparency by the Seller – The seller of this bar for sale has operated on a less than candid basis with the State Alcohol Licensing Authority, the State Sales Tax Board, and the Internal Revenue Service. Do you think they will be forthright with you, when you are trying to buy this Bar for Sale?

What Should You Do?

If you are a Buyer that prefers a less risky approach, than a Bar for Sale with Verifiable Earnings is the answer! The price might not be the “Deal” you were looking for or saw advertised on a listing with “Cash Earnings”, but the motto that “You get what you paid for” holds true in this scenario.

Pricing and Earnings are NOT a game in the Valuation of a Bar for Sale. They are simple math problems and they can have a right and wrong answer!

Robin Gagnon is Vice President and Director of Marketing for We Sell Restaurants and www.wesellrestaurants.com. She holds an MBA in finance and frequently writes on the topics of restaurant sales, restaurant valuation, and financial topics around the buying and selling or restaurants, clubs or bars.  Want to see her latest bar for sale listing with verified earnings?  Click this link for more information. 

 

 

 

 

Topics: Buying a Restaurant

June 2018 top 10 Restaurants for Sale at We Sell Restaurants

Posted by Robin Gagnon on Jul 3, 2018 12:06:51 PM

What happened last month with restaurants for sale and traffic on our website featuring the most restaurant businesses for sale near you?  The traffic continue to trend up, up, up as more buyers started researching their next venture in life.  Our phone calls ranged from those retiring early with too much energy and time on their hands to corporate refugees looking for six figure earnings and an exit from the corporate life. 

The overall theme for this month -- Georgia is booming, multi-units have lots of interest and restaurant space for lease is an opportunity our buyers are loving!  

 

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Open and operating since 2013, this breakfast and lunch, sub and sandwich shop in Florida topped the list with its proven formula. With limited hours, the annualized sales are $200,000, but adding dinner hours  or catering could increase those numbers! This fully equipped has incredibly low rent, and is on a busy street, surrounded by a shopping center including retail businesses, office space, car dealerships. This is a fantastic opportunity and we can certainly see why it's at the top of our list!

 

 

 

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Our second hottest listing for the month was a seven store group in Denver Colorado.  This market has an economy that's raging, a housing market showing no signs of slowing down and buyers ready to go.  They are ready to rake in the dough as the owner of seven franchises for sale of a single brand name in Colorado! These franchises for sale are doing sales of almost $4.5 million annually, which delivers the current owner discretionary earnings of almost $350,000! Seven incredible, built out, fully open and operational restaurants are just waiting for their new owner, and have been very popular! 

 

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A local bar and grill for sale in Georgia checked all the right boxes for our buyers looking for strong earnings and an established location.  This local favorite features a four star reputation, open over eight years, sales exceeding $1.8 million, owner benefit over $140,000, great lease rate and good books and records.  All it needs is a new owner operator which is why it was one of the most popular restaurant for sale listings nationwide. With a university nearby, and population, income, and housing growing, there’s no shortage of patrons, and something for all 200 that can fit to enjoy! With fantastic reviews, and available seller financing, this bar is amazing for an owner who wants to step into a profitable, up and running, business!

 

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Twenty percent of the top ten listings this month were lease spaces.  This one, again in Georgia, 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 like an in-ground grease trap and hood system! 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.   

 

 

The top five most popular listings included this Florida store. This recently renovated, fully equipped Peruvian restaurant for sale in Pembroke Pines is a winner! With its sleek, modern style, and well know, homemade sangria, it’s popular, both with guests, and those looking to buy! The near perfect reviews, and fully equipped kitchen mean that this restaurant will be making money from day one, it’s no wonder that this is the second month it’s spent on the We Sell Restaurants Top 10 list!

  

 

Why start with one?  These four proven Franchises for Sale are being sold as a single package in Dallas Texas by We Sell Restaurants and buyers love it! 

Combined sales exceed $2,000,000, delivering more than $220,000 to the owner in discretionary earnings. Eye-catching numbers indeed, but for this opportunity, only those with multi-unit experience will qualify for this opportunity.  Unfortunately, no first timers as these franchises for sale are a valuable commodity and those without experience operating multiple stores will not be approved by the brand. 

  

This fully-equipped restaurant space for lease was one of two on this list last month, and they’re both back this month. Next month, however, this one won’t be here!

Already in contract after just 84 days on the market, the new lessee’s will breathe life into this space with their brand-new concept! Exciting times for their community.  This listing is going, going, gone!  It will lead a possible wave of new concepts, with all the lease spaces gaining popularity on the We Sell Restaurants site.

 

  

 

This adorable Diner for sale in Georgia has been on our Top 10 list for three months in a row, and we can’t figure out why nobody has snatched it up yet! Providing a traditional diner feel, with a southern twist on East-Coast diner food, this diner has proven itself to a cast of regulars, and a number ONE rating for breakfast and brunch restaurants in the city!

A popular diner, both with buyers and with patrons, it’s a perfect opportunity, and is just waiting for a new owner!

  

 

This fantastic bar for sale in metro Atlanta has a great atmosphere, and great sales to reflect that! A very popular bar in person, it has also become a very popular listing here on our site. This bar making it to the top ten list is not surprising to us, as this bar has everything you could be looking for! An unparalleled location, amazing lease terms, TWO separate liquor licenses and, incredibly for a bar, it will qualify for SBA lending!

We don’t expect this bar to be on the market for long, but if we still have it next month, we wouldn’t be surprised if it was on this list again!

   

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This Pizza business for sale in Florida was established by a seller who has an established process of building out restaurants, establishing procedures and menus, opening the business, and then selling. Already selling enough to forecast $360,000 as annualized sales numbers, it’s already doing well.

Only on the market for 20 days, this one is breaking records with views, calls and clicks on our site pushing it onto the Top 10 list. 

With Arcade games and specialty pies, this pizza business is a family friendly fantastic opportunity!

The overall themes for the month include off the chart activity in Georgia and Florida, where buyers are seeking the best opportunities.  There was also strong focus on both lease space and multi-unit restaurant franchises for sale, where buyers can step immediately into a role of strong earnings and multiple locations. 

Still looking for your ideal restaurant for sale?  Check out all our listings online at wesellrestaurants.com. 

Topics: Buying a Restaurant

We Sell Restaurants Weigh in on Recent Franchise Restaurant Sale Announcements.

Posted by Robin Gagnon on Jun 29, 2018 11:07:03 AM

The economy is soaring with small business confidence, lending, unemployment and GDP all hitting top marks.  What does that mean to the franchise restaurant sales industry?  It looks like deals to buy restaurants are hitting record marks.  We Sell Restaurants has scoured announcement across the country to see what’s selling and where.  Here’s what we learned.

One strong trend noted among the announcements is that existing franchisees are expanding.  We Sell Restaurants suspects they are taking advantage of existing operational experience and a very robust lending market to grow additional for units within brands they already own. Examples include:

 Dunkin' Donuts signed a multi-unit store development agreement with existing franchisee Lagunita Franchise Operations.  Over the next several years the franchisee group is planning to open seven new Dunkin' Donuts restaurants throughout Montgomery, Alabama. The first two locations are scheduled to open in 2019, with additional restaurants to follow over the next several years. LFO is led by Damon Dunn; the group has been franchising with Dunkin' since October 2016 and operates seven restaurants in the Mobile, Alabama, and Mississippi Gulf Coast regions. 

Expansion by Team Schostak in Michigan.  The group already owns and operates five Del Taco locations, with a sixth in development.  Mexican continues to be a popular choice as American embrace this food choice and franchise offerings. Franchise Times reports that Mexican chain Del Taco will grow an additional 12 stores across the Detroit, Michigan, area as part of a new franchise agreement with franchisee Team Schostak Family Restaurants.  The company already operates also operates various other casual dining and fast casual brands, including more than 65 Applebee's restaurants across Michigan. 

Cody Trammell and his Southern Fired Hospitality Group are announcing a second location by Cowboy Chicken.  The restaurant in Edmond is set to open in May; Trammell's first Cowboy Chicken unit opened in February 2017 in Oklahoma City's Memorial Square Shopping Center.  He and his business partners plan to open additional Cowboy Chicken restaurants in Oklahoma City, Tulsa demonstrating more growth within brands for new stores.  Founded in Dallas in 1981 and franchising since 2009, Cowboy Chicken has 23 open locations.

Other deals with new franchisees for the past few months included Rise Biscuits Donuts which inked a five-unit franchise deal for the greater Kansas City area. Franchisee Ryan Cook plans to open the new locations over the next five years. Franchise Deals

New York City-based Artichoke Basille's Pizza signed a multi-unit franchise deal to bring its brand to the greater Hartford and New Haven, Connecticut areas. Franchisee Matthew Rusconi is looking to open the first location by year's end and is scouting real estate opportunities in Hartford County, New Haven, Middletown, and Cromwell.

Tropical Smoothie Cafe signed its 100th agreement in Texas, a three-unit franchise deal with new franchisee Shahrukh Noormohammed to open stores in the Houston market.

Mooyah Burgers, Fries & Shakes will expand in Orlando, Florida, and southern Virginia. The company signed a three-unit deal with Bakfield, LLC, a group of three entrepreneurs and friends (Raj Bakshi, Keith Fields, Kevin Hipes) based in Lake Mary, Florida, and a three-unit deal with Keval Shah and Sanjay Patel, community-focused owners of multiple businesses in the area, including a Cold Stone Creamery in Norfolk, Virginia.

Russo's Restaurants signed a development deal with restaurateur Zafar "Jeff" Moosa, who acquired the Russo's Coal-Fired Italian Kitchen location in Richardson, Texas, and will significantly expand Russo's Restaurants' Texas footprint across Dallas, Fort Worth and San Antonio.

NFL stars Vernon Davis and Mohamed Sanu announced a joint partnership to bring more Jamba Juice stores to the Washington, D.C. metro area. Davis, a tight end for the Washington Redskins, and Sanu,one of the Atlanta Falcons' star wide receivers, plan to develop six units. Davis already owns five Jamba Juices in Northern California and is the co-owner of various commercial and residential properties throughout California and Maryland.

Teriyaki Madness inked a deal with the entrepreneurial trio Steve FreedmanMax Freedman and Rene Navas, who purchased 10 shops to build out in Miami, Florida, over the next 10 years.

International growth was also trending in the past sixty days. Dippin' Dots and Doc Popcorn will debut in China as the sister brands plan to open six locations by this fall and a total of 10 by May 2019. The brands' franchising group established a business entity in Asia and signed its first licensing agreement with Shanghai Desire Food Co. LTD.  They are scheduled to open all of the following locations:  Pudong and Yangpu in Shanghai along with the Shanghai South Railway Station and a flagship store planned for the Shanghai Shimao Plaza.

Duck Donuts signed its first international franchise agreement with OBX Alimentos SpA, which is set to open 10 donut shops throughout Chile over the next four years. Marcial Dieguez-Acuna is CEO of OBX Alimentos SpA and a partner in investment firm Inversiones Rio Potomac Ltd. His family has a track record of more than 50 years of successful business ventures in Chile, including bringing American concepts and products to Latin America.

Overall, the market looks great and franchise restaurant sales continue to grow.  For existing franchise for sale opportunities, visit the We Sell Restaurants website online at this link. 

Topics: Buying a Restaurant

We Sell Restaurants Appear on Commercial Real Estate Show

Posted by Robin Gagnon on Jun 25, 2018 9:47:33 AM

Eric and Robin Gagnon, co-founders of We Sell Restaurants, recently appeared on the Commercial  Real Estate Show with Michael Bull.

The conversation ranged from tips for landlords to the biggest disruptors in the industry. What did these experts share with the host?

"Delivery is far and away the largest disruptor to the restaurant industry we have seen in years," says Robin Gagnon of We Sell Restaurants. How is this affecting space needs for restaurant tenants? They are shrinking according to these experts, especially in fast casual, as services like EZ Cater, GrubHub, Uber Eats and more starting to move share out of restaurant seats and into delivery.

Delivery is far and away the biggest disruptor in the restaurant industry.

The duo remarked that some brands are planning for up to 30% of their volume this year to switch into a delivery model. That means they require less front of the house space, reducing occupancy costs. The only problem? Many brands have not yet designed for stores that are shrinking from 3,000 square feet to 2,000 square feet and even if they have, long term leases in place are for oversized units.

That puts pressure on brands to adapt quickly to less space and work creatively with landlords to downsize their existing footprint.

Eric Gagnon told Michael that landlords should no longer seek just the best operators as that's a model from the past. Instead, they should look at those with sales and marketing experience. The restaurant industry is facing tough competitors so good operations is a given. What landlords should focus on is the talent of the potential tenant to sell business and create a buzz about their restaurant outside the four walls.

Tips for landlords from these restaurant brokers included structure of rent in new and creative ways, participating in the business and putting eyes on the business rather than relying on Yelp reviews to know what's going on.

The full show can be heard at this audio link. Tune in to hear Michael Bull with guests Eric and Robin Gagnon. They discuss the current state and future of the restaurant business as well as the impact on the commercial real estate industry including tips for landlords, restauranteurs, lenders and their advisors

America’s Commercial Real Estate Show™ is a weekly video and podcast show about commercial real estate related topics. The show which began airing in 2010 is known for high-quality content delivered in a professional enlightening style. The show provides current, actionable and valuable business intelligence.

Watch videos, listen to podcasts, or read blogs on YouTube, twelve podcast sites including iTunes, and on the show website www.CREshow.com

We Sell Restaurants is a national restaurant brokerage firm specializing in the sale of restaurants nationwide. They work in 45 states and are franchising their brand nationwide. More information about the brand can be found online at wesellrestaurants.com

Topics: Buying a Restaurant

Best Restaurant Social Media Campaign Ever! IHOP goes to IHOB and We Sell Restaurants says...

Posted by Robin Gagnon on Jun 15, 2018 4:33:15 PM

What’s in a name?  For a company like ours, aptly named, “We Sell Restaurants,” we’re pretty confident that a good name is key to not only describing what you’re about but also gaining traction in the market. 

In the news that nearly crashed the internet this week, a familiar brand decided to change their name and their brand focus is one fell swoop.  For the last 60 years, people have known the name IHOP or International House of Pancakes.  On June 4th, they announced that they were “flipping [their] name to IHOb,” much to the consternation of the internet.

In advance of the announcement, jokes abounded about what the b would stand for. IHOP’s own twitter feed drummed up the action with a poll from their followers.  Guesses ranged from butternut squash to barnacles. Many people guessed breakfast, along with other logical choices like bacon and brunch.DfGbx9SVAAA86ag

The social media team at IHOP(B) did an amazing job teasing out the answer.  Their first tweet announced a change was in the work and then primed the social media pump.  From encouraging the speculation on social media, playing coy about guesses, and changing words that start with a p to start with a b, they managed to stage a brilliant online campaign.  They engaged in Twitter exchanges with others (Check out our favorite - the Wendy’s Twitter account) and overall hyped in a way we’ve never seen, as the name change had clearly been in the works for some time.

What did they get for this daring effort?  How about hours of online press, a social media firestorm and more mentions stacked up in a two week period than they probably had in the last year.  It wasn’t just social media getting into the action, traditional media was engaged as well and a quick search of articles finds three pages of online results for articles written in the past 48 hours.  Look at us – we’re writing about them too!  

Some are asking, is it a publicity stunt or is it real?  We don’t know but what we do know is that the tactic got everyone on board from other brands to schools and universities to corporations.  Here’s just a sample of some of the tweets that fueled the storm this week.

Burger King came out on Twitter claiming to be the king of pancakes.  When asked if they’d let IHOP sell burgers on their block, Wendy’s replied “Not really afraid of the burgers from a place that decided pancakes were too hard.”

Whataburger tweeted “as much as we love our pancakes, we’d never change our name to Whatapancake.” Hot Pockets simply tweeted “bot bockets”. Other non-food corporate twitter accounts joined in.  Netflix tweeted “brb, changing my name to Netflib.”

When the dust settles, it will likely be the best social media campaign ever.  Will it sell more pancakes?  The restaurant brokers suspect they will, at least for the foreseeable future. Will they really be IHOB – International House of Burgers?  We don’t see it.  Let’s stay tuned and see what’s in a name for this brand.

Topics: Buying a Restaurant, Selling a Restaurant

We Sell Restaurants Team Featured in Rivermoore Business Beat

Posted by Robin Gagnon on Jun 11, 2018 9:39:35 AM

The Rivermore Business Beat - Life in the Park Magazine posted this article about Restaurant brokers Steve and Cyndi Weinbaum of We Sell Restaurants in their June 2018 edition.

In 2015, Steve Weinbaum decided he’d had enough of the “corporate grind” and wanted to find a new career path that he would enjoy.  So, he started selling restaurants. Literally.

Weinbaum, joined We Sell Restaurants, a business brokerage practice focused on the restaurant industry. The company specializes in selling restaurants, restaurant space for lease and leads the country in independently owned and franchise restaurant resales. Before long, he was joined by his wife, Cyndi where they created a husband and wife team in the firm.  Cyndi Steve

Steve and Cyndi both have retail and financial backgrounds. They met and married while at Macy’s corporate headquarters in Atlanta where Steve was on the marketing side and Cyndi was in buying. When Macy’s relocated their corporate offices to Atlanta, Steve transitioned to the gift card and payment industry while Cyndi pursued a residential real estate career. Eventually, their Macy’s days led to a connection with Robin Gagnon of We Sell Restaurants. Eric and Robin Gagnon, also a husband and wife team, started the firm in 2001 and have grown it to a nationwide company working in 45 states.

“It’s a lot of fun because you meet buyers and sellers who are looking to get in or out of the industry for different reasons,” Steve said. “I had a guy who worked at a yogurt shop for five years as an operations manager and had the chance to buy one for the first time. You feel like you’re helping people realize their dream, which is both fun and rewarding.”

Steve and Cyndi help buyers realize the American dream of business ownership. They broker deals between parties looking to buy and sell a restaurant. Sellers need their services to figure out the value. Buyers need their advice to make the right decision.

In a typical transaction they begin with the seller who is interested in their services, speak with the restaurant or franchise owner to figure out their financial details, do a valuation and come up with an asking price. The listing is then marketed nationwide to a database of more than 75,000 buyers seeking a restaurant for sale, all while keeping the exact name and address a secret.

For buyers, Steve and Cyndi do the initial work to qualify them for the purchase, assist with lending options and provide overall guidance and support. Prospective buyers must sign a confidentiality agreement and the name of the restaurant is not listed on the site, only locations and details. Once the buyer has been qualified, the restaurant’s identity is revealed.

This career switch has worked out well for the Weinbaum family. They’ve found a way to provide for their blended family and lifestyle while enjoying the flexibility of being in business for themselves. They enjoy helping other realize the dream of small business ownership. They’ve also proven to make a great team. Steve admits he’s not a details-oriented person; that’s more of Cyndi’s strong suit, so she handles a lot of the numbers and writes many of the contracts. Meanwhile, Steve’s background in sales and finance comes in handy when working with sellers and lenders.

“We are a great team. We complement each other with our strengths and skill sets,” Steve said.

Steve can be reached at (770) 714 – 4552 or email at steve@wesellrestaurants.com.

Cyndi can be reached at (770) 851 – 5194 or email at cyndi@wesellrestaurants.com

 

Topics: Buying a Restaurant, Selling a Restaurant

May 2018 top 10 Restaurants for Sale at We Sell Restaurants

Posted by Robin Gagnon on Jun 4, 2018 11:50:05 AM


Topics: Buying a Restaurant

Why Buy a Restaurant when you can buy a Restaurant Broker Franchise?

Posted by Robin Gagnon on May 31, 2018 8:24:36 AM

Interested in a rewarding career in a high-demand field? Those looking at buying a restaurant should consider the restaurant brokerage industry.  We Sell Restaurants is changing the way restaurants are bought and sold. Here are the top five things you need to know about our Franchise for Sale  opportunity.

Anyone interested in purchasing a franchise for sale will not want to rule out becoming a We Sell Restaurants franchisee. The option makes sense for several reasons! Here are the top five.

Strawberry Recipes (2)Reason One -- Size Matters.

There are more than one million restaurant locations within the United States alone and that number has been growing every single year.  Let's put that into perspective.  The restaurant industry contributes a staggering $799 billion dollars to the U.S. economy – a figure that is equal to four percent of the gross domestic product (GDP) of the United States and larger than 90% of world's economies. 

The restaurant industry will create 1.7 million new jobs by 2026 and represents 10 percent of the U.S. workforce.  Forget the long ago years of dining together around the kitchen table.  Today, nearly half of all the food dollars spent by families are spent in restaurants and that keeps building.  It's not just new locations but also turnover in locations that matter for restaurant brokerage.  As units open, they also close or change hands.  That requires the services of a restaurant broker. 

As the restaurant industry continues to grow, so do the number of restaurants being sold. In this case, size matters.

Reason Two - Baby Boomers.

The wealthiest generation born in the U.S. are the Baby Boomers, and they will be between 54 and 72 years old this year – retirement age!  They are also the largest generation in history and 10,000 will turn 65 every single day until 2030.  Baby Boomers are ready to sell their successful restaurants and hit the beach! These Baby Boomers (and everyone else) who wish to sell their restaurants want to get the most out of their investment, and they want to get it done quickly. They aren’t going to call just any broker to get this done – they are going to put their trust in a brand and authority who know the industry inside and out.

Baby boomers retiring create many restaurants to sell.  That's reason two to look at restaurant brokerage. 

Reason Three - Franchise Resales

The franchise industry began in the 50's and Millennials are poised to inherit the family business.  For most, staying in the restaurant industry isn't their choice or they want to trade into new concepts.  That creates turnover.  Turnover is what funds the pipeline of a restaurant broker.  These businesses changing hands at a faster rate than ever before is fueling the growth of the industry. 

Franchises want to work with other franchise brands. They see the expertise of a specialized brand as important to their decision making process and appreciate the systemic approach of a firm like We Sell Restaurants.  That's reason three.  As franchise resales grow, the market share of our brand expands within that niche.  

Reason Four - Specialization is Key

Those looking to buy or sell a restaurant iare not seeking out a generalist. They want someone who understands the industry and how to value the business.  They are seeking the authoritative resource with the experience, knowledge and customer base to get the job done.   A generalist who sells a little bit of everything is not the solution.  A trusted, national brand like We Sell Restaurants has the authority and is on the leading edge of the industry at all times.  That matters to buyers and sellers and should matter to you when choosing a brand to align with. 

That's reason four to consider this brand. 

Reason Five - Training is Critical

Selling a business is not a simple process.  It takes tremendous knowledge and training.  The We Sell Restaurants brand has sold more restaurants than anyone else, PERIOD.  Those who join the We Sell Restaurants franchise for sale go through extensive training.  We want the best who are able to perform at 100%. We provide the only Certified Restaurant Broker program in the U.S. The program is made up of five phases, with the final phase offering one-on-one Mastermind sessions with the founders for an unlimited length of time.

Getting best in class training is the last reason to consider the We Sell Restaurants franchise. 

Interested in learning more but wondering what a Restaurant Broker does?” When a seller decides that they would like sell their restaurant, they call a Restaurant Broker to handle the listing. The Restaurant Broker lists the restaurant for prospective buyers to view. There is tremendous effort and funding put into marketing the business.  When the buyers contact a Restaurant Broker in regards to the listing, he or she works in negotiations between the buyer and seller to get the listing sold.

Experience in the restaurant industry may be helpful, but is certainly not required to buy a We Sell Restaurants franchise for sale and to become a Restaurant Broker. We are confident that our Certified Restaurant Broker program is so effective in teaching the restaurant brokerage business, that we can turn anyone with the drive and passion for success into a top-earning Restaurant Broker. 

The income you can earn by purchasing a We Sell Restaurants franchise for sale and becoming a Restaurant Broker is determined by how much work you are willing to put into your career. Most Restaurant Brokers are able to work from home, as all you need is a computer with a good internet connection and a smartphone. As a Restaurant Broker, you can expect to spend about 40% of your work day on the phone with buyers, another 40% working with sellers, and the final 20% moving deals forward.

So what are you waiting for? Click here to learn more about purchasing a We Sell Restaurants franchise for sale today!

Topics: Buying a Restaurant

How to Buy a Restaurant with No Money Down

Posted by Robin Gagnon on May 21, 2018 12:33:35 PM

Falling in Love with the Dream and Buying the Reality. You want to buy a restaurant  but you don’t have money for the deal. Is there a solution? Read on for the tips and tricks from the restaurant brokers to make it happen.

First time restaurant buyers can look like seasoned professionals by following the tips in this article on buying a restaurant with no money down.  What are the steps?  What comes first?  How do you negotiate the deal.  Focus on the following first and then we’ll teach you how to shop for the right listings.

Step 1:  Get your financial house in order

If you are trying to buy a restaurant with no money down, make sure your credit is buttoned up and ready to go.  Pull a recent credit history from one of the many online sources – you are entitled to free copies.  Clean up any pending issues and make sure you have a good credit rating going into negotiations and be ready to show this to a potential seller.   If you want him to serve as your bank, you need to demonstrate that you’re credit worthy .How to Buy a Restaurant with No Money Down

Step 2:  Build a business plan

The only way a seller and a landlord will buy into your takeover is with a solid business plan.  The components of the business plan should include your knowledge, background and experience, your marketing plan, your overall strategies and tactics to build sales, along with financial projections.  If you need help building a business plan, check out our earlier blog post on this topic at this link.  Other sources of help with a business plan include SCORE, the nation’s largest network of volunteer, expert business mentors.  They have chapters all over the United States.

Step 3:  Identify target Restaurants

Now that you have your financial house in order, let's start the search.  Begn by find restaurants that are not advertising cash flow.  These are turnaround opportunities sometimes called “asset sales.” For many of these restaurants for sale, the current seller may be disengaged, working in another business or out of capital to get this business to the next step.  It could be he just doesn't have the same skills you have in operations or marketing.  Identify these listing from ads with terms like, "Gorgeous build out.  Owner spent more than XXX to create. Seller will sacrifice…”  A franchise might be advertised at “just $99,000 though the build out and cost to launch exceeded $350,000.”  These are excellent targets for buying a restaurant with no money down as the seller is already demonstrating his willingness to cut his losses.  

Does an asset sale mean the business is failing?  In many cases, yes -- today.  If you’re going to buy a restaurant with no money down, you need to be ready to take on the risk to “flip the restaurant” and take it to the next level.  How do you decide if it’s the right one?  Investigate the business. Visit as a customer.  Check out the surrounding area. Pull the demographics on the trade area and figure out if the market is good and the concept is bad.  You can change the concept.  You can’t change the location.

Identify where the seller has missed the mark by reviewing his financial picture, checking out his marketing (or lack thereof) or understanding the quality of the assets.  Fit your business plan to this situation and see if your ideas have traction in this location. 

A quick note on asset sales.  They are not always independent restaurants.  Often a franchise restaurant for sale location will not be making money under the current ownership.  The seller is often absentee and has not embraced the franchise model.  This is an easy one for a turnaround situation.

One other key restaurant broker bit of advice on examining asset sales.  It is never a good idea to focus on cutting costs.  Most sellers have tried that path.  Look at any restaurant for sale to expand the top line.  Where can you grow sales?  If you take care of sales, almost all other elements of the financials come into acceptable ratios.  Take lease rates as an example.  If the current seller is doing $400,000 in sales on a space leasing for $6000 per month, his occupancy cost as a rate to sales is far too high.  Will the landlord negotiate this down?  Usually not.  Focus on what he is not doing that will drive top line sales to the right level (closer to $750,000 on this rent number) and if you can’t make it work, don’t tie up your credit and time in this restaurant.  The most common solutions are marketing and advertising.  Most sellers with restaurants that are under-performing are failing to reach out with strong ideas to drive traffic.  In addition, look at delivery.  The many sources of delivery today including, Uber Eats, Door Dash and many more that represent a strong opportunity for higher sales.

Final Step:  Negotiate a deal with no money down.

Once you have identified your target, approach the seller or the broker with a proposal for acquiring the business with no money down.  Demonstrate that by taking over today, you will remove the current seller’s liability for the lease or franchise.  – A seller who is currently not making money is often willing to walk away provided you address his obligations.  That includes the personal guarantee on the lease or the franchise agreement.  Sometimes he has equipment that has a remaining note.  See if you can take over his payments. The point of the negotiation is to remove the pressure of staffing and running the business today.  He needs to see you as his solution in order to sell you the restaurant with no money down.

Nothing down doesn't mean he'll never be paid.  Be creative in financing terms.  You can tempt the seller to accept your offer with an “earn out” or stake in the future production of the business, including a percentage of sales or percentage of profits.   You will need to do some strong work on presenting the deal and the “upside” to the seller but, hey, you’re buying for no money down, so put the effort into the negotiations. 

Demonstrate to the seller why this is a win for them and build an acceptable interest rate into your future payments.  You are taking a chance on buying a restaurant based on what the future holds.  You have to convince the seller to take the same chance on you! 

Like this article or want to talk more or see restaurants for sale?  Check us out online at this link.

 

Blog Byline Robin

 

Topics: Buying a Restaurant