Do you have one of those friends in your life that always wants to take the opposite side of an argument with you?  You know the one that’s “always right” whether they are sitting across from you at a bar or posting on Facebook? 

I was talking to one of my friends like this recently about what I do for a living.  When the discussion turned to buying restaurants, he said to me – “it is a terrible time to buy a restaurant.” I have to admit this restaurant broker was shocked.  A terrible time to buy?  I can think of ten great reasons why there’s never been a better time to buy a restaurant and why are business is on fire.

Here are Ten Reasons Why I believe it's time to Buy a Restaurant.

1)      Rents are at an All Time Low:  Landlords are giving out great deals right now for qualified tenants.  If they have a slow paying tenant or non-producer, they want to talk to a better credit qualified tenant right now.  That means you can take over someone’s assets cheap and easy at good rental rates.

2)      Great people are staying on the job:  The tough economy of the last few years has people thinking twice about jumping ship and skills have never been higher.  It’s a dream environment for operating a restaurant or bar when the best qualified individuals are available to be on your team.

3)      Control over your own destiny:  Surveys continue to show that Americans feel control over their own lives is being usurped in oh so many small ways by government regulation run amuck.  The one place you still have some control is in your own business where you call the shots.

4)      Great deals on assets:  Those who are packing it in are often leaving their equipment behind as they move out.  That means you can pick up used assets at great pricing or often just for the price of the lease.  That’s good news.

5)      Prices have never been better:  Those in the market to sell are seeing lower multiples – bad for sellers but excellent for buyers who are getting the best pricing in years.

6)      Lenders are lending:  Forget the doom and gloom of two years ago.  The restaurant brokers have multiple deals with SBA lenders on board and money is flowing when there are good books and records to support the pricing.  This requires strong upfront work by the restaurant brokers to qualify the business that pays off for the buyer and seller.   

7)      The best opportunities have weathered the storm:  Good restaurants for sale on the market have already streamlined costs, managed their menus and cut all extraneous expenses.  They are making money now and will make a lot more as sales grow.  Buy one today and you’re positioned to take advantage of that cash flow.

8)      Franchisors are weeding out the weak:  It’s never been a better time to grab a franchise re-sale as they are also scrubbing their list of operators and consolidating into the best of the best.   How do they do that?  They highly recommend that the weaker operators put the business on the market which means we have more franchise restaurant for sale than ever before.  You can grab great brands that wouldn’t have been available a few years ago.

9)      Willingness of Sellers to Work with a Buyer:  Sellers understand the competition to sell has never been higher and they will accommodate all reasonable requests. That’s good news when you’re buying as we see concessions taking place.   

10)   Location, Location, Location.  Some markets or locations that would have been unavailable even a few years ago are now within reach though we see that window closing.

The bottom line is that all ten of these reasons demonstrate why it’s a great time to buy a restaurant.  If you can prove yourself today in a still challenging business environment, then your future in this industry is very promising.   The economic times may force you to be more disciplined and creative in your business than five years ago.  However, adopt this as your work model and carry it forward into less challenging times and you’ll be able to create a small empire of restaurants. That’s what I told my “always right” friend and even he had to admit it’s not such a bad time to buy a restaurant after all.

Interested in buying a restaurant?  Check out our listings online!

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.

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