Are you in the market to sell your restaurant equipment but aren't sure where to go? The restaurant brokers have a solution.
Whether you're talking about that old fryer hanging around the storage area or an entire restaurant you've closed down, when it needs to go, and go quickly, you need available resources.
Well the restaurant brokers have a few options you should check out. First and foremost, it is possible to sell just your restaurant equipment in what's known as an asset sale using the services of the restaurant brokers. An asset sale is not priced as a "going concern" since the new owner will be bringing their own menu, staff, brand and promotion. The only thing remaining from the old restaurant will be the "bones" of the kitchen and decor. Typically a seller can expect to get between 20 and 30 cents on the dollar of the original cost. For example, if someone spent $250,000 to build out a restaurant, it may go on the market for around $50,000. An asset sale is very marketable from the restaurant brokers standpoint since it's a ready to go location for someone ready to get into the market as quickly as possible and just do a concept change. The advantages of selling your restaurant equipment this way is that the restaurant brokers have clients who will put the items to use at the highest and best application and can typically bring more than either auction or a used equipment wholesaler.
Don't have enough time to market and sell your restaurant using the restaurant brokers? There are other options to sell your restaurant equipment. Check out A City Discount. They have a button on their website where you upload a description, photo and fill out a brief form that connects you with the right person to perform an appraisal and work with you on next steps.
They will consign your equipment or purchase it for resale to someone else seeking to start a restaurant. They offer complete inventory buyout and proactive consignment opportunities. You can either deliver your merchandise to their warehouse in Atlanta, make an appointment for someone to appraise the contents or handle it long distance via email and phone. The advantage in using a used equipment vendor is that you are paid quickly. The disadvantage is that you will get much less than you paid for it.
Want to move even faster? Contact firms that specialize in restaurant auctions of used equipment. One option in Atlanta is Billy Vick Restaurant equipment. They hold auctions on everything from walk in coolers to sound systems and everything in between. The auctions are sporadic so check their website for details. You can also view the "leftover" items online that don't sell during the actual auction. In addition to onsite auctions for selling your restaurant equipment, they also do a warehouse auction once a month so someone putting a new restaurant together can get some good deals. This approach for selling your restaurant equipment has the advantage of beginning and ending quickly. The disadvantage is that you may receive only pennies on the dollar for the equipment and the cost of holding the auction will be yours to bear as well.
The pros of listing with the restaurant brokers is that you will always get the most for your equipment but there are definitely other options in the marketplace. Do your own research or give us a call if you want more help in selling your restaurant. We’ll be happy to point you toward resources in your community.
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Robin Gagnon, Certified Restaurant Broker®, MBA, CBI, CFE is the co-founder of We Sell Restaurants and industry expert in restaurant sales and valuation. Named by Nation’s Restaurant News as one of the “Most Influential Suppliers and Vendors” to the restaurant industry, her articles and expertise appear nationwide in QSR Magazine, Franchising World, Forbes, Yahoo Finance, and BizBuySell. She is the co-author of Appetite for Acquisition, an award-winning book on buying restaurants.