What are the best restaurants for sale in the month of March 2019? Here's our take on that with the ones that got the most views, clicks, downloads and inquiries from Wesellrestaurants.com
The best restaurants for sale in the month of March started with a listing priced to move at just $55,000 in Florida and escalated to a price point of $575,000 for a two store group in Atlanta. That demonstrates the range of the current restaurant buyers in the market. Some are seeking a simple conversion space while other are looking for high earnings. Here's each restaurant for sale listing that hit our top ten listings out of more than 300. These units have something special attracting more buyers than all the rest to be the top 3% of all our restaurants for sale. That makes them the best restaurants for sale this month!
First on the list was an asset sale in lovely Boca Raton Floridia that is fully equipped and ready for a new operator. A right sized location at just 1497 square feet, this on has monthly rent of $4688 in Broward County, a hotbed of residents who love the beaches, the tax rate (0%) and more. We are still seeking an offer on this one so move quickly.
Restaurant Broker Dominique Maddox in Atlanta represents two strong franchise locations that are combined in a two-store package with earnings of over $175,000 on the books. The opportunity for these franchises for sale in the Atlanta Metro area is unmatched for the lifestyle, earnings and consistency. Approved for SBA lending with just twenty percent down, these winning locations are ready for new ownership.
Austin Texas is part of the best restaurants for sale this month with a store next to the University of Texas. Campus locations are ideal for operators with fast casual concepts. This location is priced to move at $119,000 and can stay the same concept or convert to something new. Contact Dave Duce in Austin Texas for more information on this one.
That's the list of the best restaurants for sale in March of 2019. Florida dominated with the most on the list this month but Atlanta and Austin made strong showings as well. If you're seeking a restaurant for sale location, contact the expert brokers at We Sell Restaurants or check out our listings online.
Advice for Buying a Restaurant and Selling a Restaurant
Topics: Buying a Restaurant
If you’re working in a restaurant or sitting at your computer in corporate America, visualizing yourself as a restaurant owner, read on. This post is for you.
You may intellectually know that buying a restaurant is frightening and full of unknowns. Your friends and relatives may tell you that it will be too much work for not enough reward. Meanwhile, the idea keeps returning to you day after day, as you work for someone else.
Are you the person who gets the sense you could do this yourself? Are you passionate about the restaurant industry but just not happy in your current role? Did you find yourself pushed into a college career tract that now has you sitting in a cubicle while your mind is churning out ideas for the next great concept? It could be time for a change in your life and you just may be ready to buy a restaurant.
In working with hundreds of entrepreneurs each year, we see common signs that now is the time to go ahead, take the plunge and buy a restaurant. If you’re experiencing these signs, it may be time to stop procrastinating and buy that restaurant that’s on your mind.
Sign Number 1: You’re Passionate about the Industry
Food is more than fuel for the body for you. Your social media stream is filled with photos of food (and you took most of them). You’re first to check out the latest restaurant and you have ideas to improve the experience every time you dine. You have a real excitement for the act of breaking bread that involves all five senses and delivers an experience. This is sign number one that you are long past being a secret foodie and well on your way to buy a restaurant.
Sign Number 2: You’re going nowhere fast in your current role
Are you feeling unfulfilled in your current role? Whether it’s filled with prepping someone else’s menu or handling another spreadsheet, life is too short to live unfulfilled. You keep waiting on the current guy in charge to leave but realistically, where does that leave you? For some, the 9-5 and reporting to someone else just isn’t for them. This is a sign you’re ready to head out on your own and potentially buy a restaurant.
Sign Number 3: You have a vision for something Bigger and want to see it Achieved
Some of the greatest minds of this century believed there was a bigger purpose to their life. Where would our lives be if Bill Gates was happy hanging out in college instead of dropping out to build what we know today as Microsoft? On the food level, imagine if Bobby Flay was happy as a chef and never saw the bigger vision of bringing food to the masses and joining a fledging start up network called “TV Food network” in 1993? Would we all be so smitten by the food industry without him?
Sign Number 4: You Aren’t afraid to take Risks
We often speak to college and university students as guest speakers on entrepreneurship. We always remind them to strike early in their career to try something risky. Take on the risk before you take on the mortgage and two kids or make sure you’re prepared for both the best and the worst. Those who are in the market to buy a restaurant have measured the risks and are still ready to go.
Sign Number 5: You Never Stop Thinking
If your creative juices don’t turn off, you might be a closet entrepreneur and not know it. Those who buy a restaurant are always trying to figure out the way to do it better, faster, smarter. If you’re experiencing this sign and living in corporate America, you’re feeling a bit of your soul get stifled each day. In your own business, you reap the reward for your ideas.
Sign Number 6: You Can Solve Problems Independently
You might be ready to buy a restaurant if you don’t need a team to resolve a problem. That’s a sign of independence that broadens your opportunities. Those ready to strike it alone, know that while a team is important, they can handle a challenge on their own. Group think is not a byproduct of the entrepreneurial spirit.
Sign Number 7: You are Driven
No one gets you moving. You don’t need three alarm clocks to open the day. You approach each knowing what must get done and relish in seeing it accomplished. This sense of self-motivation from within you inspires others. That’s a sign you may be ready to buy a restaurant instead of working in someone else’s.
Sign Number 8: You are Organized
Whether your skill set is front of the house or back of the house, you have the skills to organize the day’s work and the week’s calendar. That’s a critical skill for operating a business and a sign you’re ready to go.
Sign Number 9: You Know You Can Do It Better
You’ve been in the industry or been in the corporate world long enough to know that you can do better than your current situation. The wait times are unacceptable, or the hiring practices don’t work. You have ideas to get it right.
That means you can improve it for yourself and for those on your team. It’s not egotistical. It’s a sign you’re ready to buy a restaurant.
Sign Number 10: You Want to Build a Legacy
You want more for your family than you had growing up or you want to create something your family can participate in and grow together. That’s a sign that where you are will never get you where you want to be. You know you must build that legacy on your own and it’s a sign you’re ready to buy a restaurant.
Review your motivations, your yearnings and your thoughts over the past few months. If you’re exhibiting all these signs, it could be that you are indeed, ready to buy a restaurant.
Want to see our restaurant for sale listings? Check out this link for hundreds of opportunities waiting on you!
Topics: Buying a Restaurant
From Food Network to Top Chef, everyone is in love with the restaurant business. Are you feeling the burn to bake or the craving to cook? Here’s how to buy a restaurant the right way and master the industry from day one. The most important lesson. Check your ego at the door and buy a restaurant before you build. Here are three reasons this makes the most sense.
When you buy an existing restaurant, you are purchasing a proven track record and profitable returns. You know exactly what your costs will be to acquire. There is no cost overrun from a builder that didn’t quote the project correctly. There’s no delay on equipment to be delivered while you burn up valuable cash reserves in rent. You know up front what your fees will be and can plan accordingly.
Building something from scratch makes you feel more in control and allows you to get everything just right - but in the restaurant industry, the opposite is often the result. The perfect pizza oven from Italy will get stuck in customs for three months and the tile you just must have will be backordered while you burn up valuable dollars with no earnings.
Whether you buy a franchise restaurant or independent concept, the control over costs is real when you take over someone else’s operation.
Another reason to buy an existing restaurant are the verifiable earnings on the books. Restaurants with good books and records can often be acquired for three times earnings or less. An owner-operator of a restaurant can buy a restaurant for sale and pay off the purchase in less than three years!
That leaves you with a debt-free income stream. That’s a great reason for a restaurant buyer that values earnings over risk. It’s another way you can buy a restaurant the right way.
Earnings come more quickly in the restaurant market to those that buy instead of starting from ground zero. Restaurant buyers find that the advantages are almost immediate. You may be putting capital at risk but you are seeing returns immediately based on the past performance. That lowers the risk; making it a wise decision.
Instant Path to Opening
Buy a restaurant that’s already in business and turn the key to operate. Those looking to buy a restaurant can shorten their time to market when you buy a restaurant that’s already created. Would you rather be in business next week serving up your creatively curated cuisine? Or would you rather wait six months and push through the headaches of build-outs and permits before you can even open the door?
With competition in the restaurant game as fierce as it is, there is no time to waste. Your idea could be taken by the time your permit is approved! Don’t wait for your dream to happen. Take charge today when you acquire an existing restaurant versus starting from scratch.
People want to get into the restaurant business - and with good reason! The restaurant industry provides a great lifestyle and control over your own destiny. Everyone from retirees opening cafes to moms with five-star juice bars agree that this is a fun industry with lots of potential. Take our advice and buy a restaurant the right way so your dream becomes an immediate reality.
There are brokers like We Sell restaurants that specialize in helping you buy a restaurant and have access to listings and information on multiple, up to date opportunities in the marketplace. Buying a restaurant that is already established gives you clear costs, verifiable earnings and income, and an instant path to opening. It’s how you buy a restaurant the right way.
Ready to see restaurants for sale?
Topics: Buying a Restaurant
We Sell Restaurants weighs in on the Best Place in America to buy a restaurant. You might be surprised by the answer!
A recent article suggests that those in the market to open a restaurant look at what they term as “second-tier” or “third-tier” cities. We Sell Restaurants has been advocating a similar approach for those in the market to buy a restaurant for several years.
What’s a “second-tier” city? Think about cities that don’t host an NFL team like New York, Chicago or Los Angeles. Instead consider towns like Ann Arbor Michigan which ranked second on the list. Other cities that hit the top ten in this recent publication included Arlington Virginia (but not D.C.) and Scottsdale Arizona. What’s the benefit for owners to buy a restaurant in Ann Arbor or Arlington versus Detroit or D.C?
One key difference between so-called “second tier” cities and the most populous markets in America is rent. A key component to success in the industry is strong control over occupancy costs. The top cities in the nation have what some would term exorbitant rent levels, making it virtually impossible for a restaurant to operate at a profit.
As Restaurant Brokers, we counsel our clients to manage total occupancy which includes their base rent, plus cost of common area maintenance, taxes and insurance at a maximum of ten percent. While that’s an ideal level, we find most major cities make that an impossibility.
Consider an example in Atlanta Georgia where we see rates for base rent hitting the $35 to $40 per square foot mark for a basic shopping center space (no end-cap, small patio). Taxes, common area charges, insurance and other costs push that total occupancy rate up to $50 per square foot.
At a level of fifty dollars per square foot, a simple fast casual concept in a 1500 square foot location would need to generate sales volume of $700,000 per year to hit the ten percent occupancy mark on a rent bill for the year of $70,000 or $5833 per month.
Is that attainable? For most restaurateurs, it is not. An operator must be at the top of their game to push that type of volume and pay the rent level requested in major markets.
Another reason to focus your search to buy a restaurant in less populated markets is the ability to stand out in the mix. For major league cities there is heavy duty competition. Virtually every concept you can think of has been developed multiple times. You won’t be one of five fast casual sandwich shops, you will be one of fifty. For the middle market landscape, you can carve a niche and get returning customers, a much less expensive prospect than constantly having to attract new ones among steep competition.
Buy a restaurant in a second or third tier like Plano Texas versus nearby Dallas. You’re reap the benefits from limited competition and loyal customers. This especially comes into play with catering or delivery service, a large component of the sandwich shop business. The Uber Eats, DoorDash, GrubHubs of the world will offer unlimited choices in a large city. For the smaller market, you’ll be one of a few instead of lost in the mix.
A final reason to focus on the second and third tier locations when you buy a restaurant is the cost of living. Not only will you reduce your own operating costs for basic needs like insurance and labor, but your customers also benefit. The cost of living will almost always, be lower than in the “major league” cities. With less money paid out for taxes, mortgage payments, insurance and all the other expenses associated with these markets, your customers have more disposable income to spend. Where do they like to spend those funds? Dining out is top of mind along with entertainment for free cash flow. That’s good news if you are buying a restaurant in a city like Birmingham Alabama or Bellevue, Washington (number eight on the list).
That also means your own money will go further. You may be living in a rat race environment now where you need high six figures to support your lifestyle. Move to a smaller market and $85,000 may “spend” like $120,000 if your overall cost of living is reduced.
Your family also benefits in ways that can’t be measured in dollars and cents when you buy a restaurant outside a major market. Smaller communities often mean a better overall quality of life. You may not be able to afford a home on the water in New York, but you can get all the views you want in Pensacola Florida. Your family will get access to great school systems, a family friendly environment and a sense of community that will spill over from your status as the local restaurant owner.
The original survey of where to open a restaurant was based on research and analysis from the online equipment seller Bid-on-Equipment. They keyed into four attributes when ranking the best place to open a restaurant: Per capita spending on restaurants; the number of restaurants per capita; the number of restaurant workers available per capita; and the median income of residents.
“Cities with growing restaurant scenes, like Austin, Nashville, and Denver, show why aspiring restaurant owners might not want to rule out second- and third-tier cities,” Bid-on-Equipment noted in presenting the data.
We agree. Our feedback on where to buy a restaurant looks at cost to operate, cost of living and quality of life. By whatever measure you choose; don’t discount smaller markets too quickly. They may be just what you’re looking for when you consider the overall picture and your desire to buy a restaurant.
Topics: Buying a Restaurant
The month of January was off the chart with activity, signed confidentiality agreements and buyers seeking new locations. Forget the government shutdown, our buyers didn't stop for a second. Lots of deals went into contract and to the closing table.
What were the most popular restaurants for sale this month? The warm beaches of Delray Beach and Sunrise Florida rose to the top as our buyers looked south in the face of the big chill. We gauge the hottest listings by the number of signed confidentiality agreements, phone and text activity as well as inquiries from online websites. Here's the list ranked from highest to lowest.
Three of the top five restaurants for sale were in sunny south Florida. The number one listing for the month was a sports bar in Delray Beach. Priced to move at $249,000, this has a long-term lease with reasonable rent. Our buyers are still considering whether to place an offer on this one.
The second most popular listing was also in Florida. This was a restaurant space for lease offered by Ken Eisenband in our south Florida office. The easily managed space is only 1,400 square feet and with monthly rent at just $4445, this one is a great opportunity for those ready to do their own concept.
One of our most popular restaurant for sale types is always an office cafeteria. We call this, "the restaurant business with banker's hours." This hot new listing by Steve Weinbaum offers six figure earnings on limited hours. That combination of high earnings with no nights or weekends had buyers calling, texting and signing up online for more information.
Overall, the month was jumping with activity and the top ten restaurants for sale got more looks, click, calls and confidentiality agreements than we have seen in recent time! The cold didn't stop these red hot deals from moving forward. What's in the future? We see continued strong interest in the market. Many deals are closing on restaurants for sale with the temporary life on the government shutdown and SBA lending back in full force.
Want more information on these restaurants for sale or access to our latest listing? Follow this link.
Topics: Buying a Restaurant
Buying a restaurant and owning your own business can be an extremely rewarding and lucrative investment. Most Buyers are surprised to know that often, it is really, not that expensive. There are restaurants out there selling for $30,000, $20,000 or even less. Some vacant restaurants are even listed for free!
What the Buyer must understand is that coming up with the money [in most cases for restaurants this inexpensive, it needs to be CASH] is one thing. However, qualifying to sign or assume the lease with the landlord is another thing entirely and something you need to understand very well.
Landlords are a different animal and not your friend. Once you reach an agreement with the Seller for buying a restaurant, you still will have to make a deal with the landlord. They are under no obligation to accept you as a tenant regardless of whether the restaurant’s Seller has accepted your offer.
Any and all offers you make for buying a restaurant should have a ‘’lease contingency’’ meaning if the landlord will not approve you, you can walk away from the deal and get your earnest money quickly returned. You need to be very careful how the language in the offer contract reads in that regard. Consult your Certified Restaurant Broker and an attorney for advice on this language.
In the case of almost any lease, the landlord will require what is called a ‘’Personnel Guarantee’’ That is a critical point that is important for you to understand. What it means is, that if your business fails, you can not get out of the lease by simply bankrupting your Inc. or LLC. You are PERSONALLY on the hook for the remainder of the lease. That mean to landlord can look for your personal savings, home equity, 401K, autos and personal belongings to satisfy the terms of the lease.
Some leases also contain a ‘’acceleration’’ clause. Make sure you understand this. What that means is that if you default on the lease, say, by missing a month or two rent, then you not only owe that back rent, but you may owe the entire value of the lease due and payable immediately! So, say your lease’s rent is $6000 per month and you have four years remaining on it; you could possibly be liable for $288,000 plus late fees, plus attorney costs!
Oh, and by the way, any friends or relatives who have cosigned the lease are in the same unfortunate hook as you are and if they are wealthier expect the landlord to pursue them more vigorously than they do you. It can make family Thanksgiving or other gatherings very uncomfortable.
When buying a restaurant with an accepted offer, you have taken the first step. Landlord approval is the next. Most landlords will seek the following information from someone buying a restaurant.
- A personal financial statement showing the Buyer’s assets, liabilities and net worth.
- 2 years of personal tax returns
- Buyer’s credit score
- A professional resume
You only get one chance to make a first impression with a landlord. If you have any problem with providing the above in a fast, serious, comprehensive detail – DO NOT MAKE AN OFFER ON THE BUSINESS. You are simply not ready for buying a restaurant that has landlord involvement.
If you are ready – get this info together now. Look at it and ask yourself ‘’If I was a landlord would I accept this person as a tenant?’’ Most landlords will require you to have a net worth of, at least, two years the value of the lease [again, if rent is $6000 per month that would mean $144,000 in total net worth.
So, the take-away is, if you are interested in buying a very inexpensive restaurant, it can certainly be done but there are much more considerations than the simple asking price from the Seller. Many of the challenges lie with the landlord. Consult your Certified Restaurant Broker or your attorney for assistance. In the market for buying a restaurant? Visit our restaurant for sale listings online at this link.
Topics: Buying a Restaurant
Thirteen members of the Georgia Association of Business Brokers (GABB) were named to the 2018 Million Dollar Club for helping broker the sale of more than $71 million worth of small, medium and large businesses. Eric and Robin Gagnon of We Sell Restaurants were among the handful of top producers for the group.
GABB members represent owners of Georgia businesses in important and complicated transactions: the sale of their business. GABB members help owners determine the asking price of their business, create marketing plans and strategies for selling their business, identify and qualify buyers, and have the knowledge, experience and skills needed to help maintain the confidential nature of the process.
Robin Gagnon was named a multi-million-dollar recipient. ROBIN GAGNON is the Co-Founder of We Sell Restaurants and the firm’s Chief Marketing Officer. One of the most prolific restaurant brokers in the industry and a franchise resale specialist, she holds the Certified Business Intermediary (CBI) designation from the International Business Brokers Association or IBBA and is an MBA. She is a writer and speaker who has addressed many groups nationwide She co-authored Appetite for Acquisition, the industry’s leading book on buying restaurants that received the prestigious “Best of ” award by Small Business Book Awards. Robin is a member of the International Franchise Association and serves on the Women’s Franchise Committee at the national level. She is also the Chair of the Women’s Franchise Network – Atlanta Chapter. Robin holds an undergraduate degree and an MBA where she graduated first in her class and was named “Outstanding MBA.” Robin is an emeritus member of the ASU Business Advisory Council. She is also a founding member of the ASU Entrepreneurship Board. Robin is a licensed real estate salesperson in both Georgia and Florida and member of the Georgia Association of Business Brokers (GABB), the International Business Brokers Association (IBBA) and the Business Brokers of Florida (BBF). Robin, along with her husband Eric teach the nation’s only Certified Restaurant Broker curriculum training and testing agents in the practice of restaurant brokerage.
Eric Gagnon is the President and founder of We Sell Restaurants and wesellrestaurants.com, ranked by Entrepreneur Magazine as the nation’s fifth largest business brokerage franchise and the largest focused on the restaurant industry. An expert in restaurant sales and valuation, he is a frequent speaker, writer and radio personality for the industry. Mr. Gagnon is the co-author of Appetite for Acquisition, an award-winning book on buying restaurants. He is past President of the Georgia Association of Business Brokers, has been named to the GABB Million Dollar Club many times, has received the GABB Lifetime Million Dollar Club Award and received the prestigious GABB Phoenix award for a decade of reaching those milestones. Business Brokerage Press first designa
The Georgia Association of Business Brokers (GABB) is the state’s only professional organization dedicated to buying and selling businesses and franchises. The GABB’s website t lists hundreds of businesses and franchises for sale throughout Georgia in a variety of fields, including automotive, business services, child care, cleaning, construction, electronics equipment, fitness, flooring, floral, food, gas stations, landscaping, manufacturing, medical, shipping, restaurants, retail, security, signs, and businesses related to the internet.ted Mr. Gagnon as an Industry Expert over a decade ago. In addition to GABB, Eric is a member of the International Business Brokers Association (IBBA), the International Franchise Association (IFA), and the Southeast Franchise Forum (SEFF) where he serves on the Board of Directors. He is also a member of the Business Brokers of Florida (BBF). Mr. Gagnon is licensed as a broker in Georgia, South Carolina and Florida.
Eric Gagnon of We Sell Restaurants said of the awards, “Today’s environment for buying and selling a restaurant or other business is competitive and requires strong attention to detail. Using the services of an experienced and educated broker is key to navigating this task so parties on both side of the transaction walk away with a win.”
GABB broker members have represented thousands of business owners and buyers, and the group has a dedicated membership of lenders, attorneys and other professionals to assist business buyers and sellers at every step of the process.
For more information on We Sell Restaurants and their restaurant listings for sale, visit us online at Wesellrestaurants.com
Topics: Buying a Restaurant
Ever wished you could have gotten an extended trial period for something you bought BEFORE you made the commitment? What about when you're buying a restaurant?
For a lot of products, there’s no “drive before you buy” that lasts the length of time you need to discover the flaws. Can you see yourself going to your local auto dealer and asking them to let you “demo” your dream vehicle for three months before you make the purchase?
Imagine this concept as it relates to your career. Have you wondered what it would be like to “test” a new job before you resign from your current one?
Is there a way to test drive the restaurant business? There is. There are literally thousands of jobs available in the industry. It’s always been our advice at We Sell Restaurants, that you should work in the industry before buying a restaurant.
As restaurant brokers, we often see people investing hundreds of thousands of dollars in an industry where they have very little experience. They buy, only to realize very quickly that this is not the right fit for them. They are now faced with potentially losing a substantial chunk of their initial investment.
What if that same person would have worked as an employee in a similar location before they made the purchase? With the labor pool tightening, restaurant owners are always looking for help. Why not and go work for someone else on a part-time basis before you go out and spend a large amount of money?
If you are buying a franchise restaurant you are in luck as hopefully there are existing locations nearby to go and see what restaurant life all is about. (Hint: It is not what you see on Food Network!)
You could even work for a potential competitor before you buy. Some franchisors require potential candidates to work in a store for up to six weeks store as part of the training process before buying a franchise restaurant.
Buying an independent restaurant location? The owner will probably not let you work there if he knows you are interested in purchasing his restaurant (AKA Undercover Boss). You could go to work at one of the potential competitors or the best independent restaurant in town. Try as many positions as you can from the front of the house to the back of the house. Learn the POS system and try your hand at delivery. You will learn a great deal and cash a paycheck as well. That sounds like a pretty good deal to me.
You think this is beneath you or unnecessary? Look at this young man who made the headlines last week.
An NFL player is working at Bojangles’s during his week off. He has a four-year, $3.18 million-dollar rookie paycheck coming in and he’s smart enough to learn the business before investing. What’s stopping you from doing the same thing during your time off?
I know it’s a lot more fun to look on www.wesellrestaurants.com for restaurants for sale but spending time in real live stores will make you more successful in buying a restaurant.
You may decide once you look under the hood, that the restaurant business is not for you. If so, you will save a huge amount of money and maybe even fatten your bank account while you’re at it.
You could learn that you have a natural affinity and talent for the industry and change your search from those making money to under performers that need a new look before flipping.
If it’s good enough for an NFL player pulling down serious money, it seems like a good plan for you in buying a restaurant.
If you are interested in working somewhere before you buy, reach out to We Sell Restaurants. We may be able to connect you with owners in your area.
Topics: Buying a Restaurant
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.
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.
*Dependent on the region your restaurant is located
Topics: Buying a Restaurant
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 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 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.
Brusly, 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.
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.
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 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.
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Topics: Buying a Restaurant