We Sell Restaurants Keeps Doors Open at Moe’s Location

Sometimes, what seems like the end of the road is the beginning of a remarkable transformation. This was the case for a Moe’s Southwest Grill location owned by a franchisee deeply invested in the movie theater industry. Post-COVID, the restaurant struggled as the franchisee shifted his focus to his shopping centers and a critical need to rebuild tenants. Since he was also highly invested in movie theaters, another casualty of the pandemic, his single franchise restaurant received little attention and was ultimately closed.

Overall, he was dealing with more issues than he could resolve, and this single unit just was not a priority. But instead of shuttering the doors for good, the franchisor recommended he reach out to We Sell Restaurants and we began to work our magic. What follows is a story of resilience, vision, and revitalization.

With the help of our Certified Restaurant Brokers, a motivated buyer stepped in, bringing fresh energy and ideas. After adding a drive-through and upgrading the building, the new owner turned the closing door into a thriving unit generating seven-figure sales for the brand.

This is not just a story about numbers; it is a testament to the value of franchise resales and the opportunities that emerge when businesses are given a second life. Here is how it all happened.

The Struggles of a Franchisee Post-COVID

For the original owner of this Moe’s Southwest Grill location, the challenges began long before the sale. As a multi-unit franchisee with a diverse portfolio that included investments in shopping centers (where the store was located) and the movie theater industry, the pandemic dealt a heavy blow to his investments. Lockdowns and reduced foot traffic significantly impacted his centers and of course, movies became the last thing on the mind of those locked in. That left him with limited resources to dedicate to this single Moe’s location.

The operational challenges quickly mounted. Reduced customer traffic, declining sales, and the owner’s inability to focus on day-to-day operations created a perfect storm. While the Moe’s location had a loyal customer base pre-pandemic, the shift in consumer habits left him believing that closing the location was the only viable option.

When he spoke to his franchisor, they recommended a conversation with We Sell Restaurants as their trusted resource for resales. The brand had an interest in retaining the unit and preventing a unit closure. At the same time, they recognized the current operator was facing competing priorities and stretched resources, viewing him to gauge the location as a liability to be shuttered.

We Sell Restaurants was able to demonstrate to the would-be seller, what many franchisees don’t realize, that this single unit that was struggling on his balance sheet represents untapped potential to a new buyer.

The Resale Process: Turning Struggles into Opportunities

With the brand introduction of the would-be seller to the We Sell Restaurants, the process began. The first step was a comprehensive valuation of the Moe’s location. A full assessment of the unit revealed the restaurant had several key selling points:

• A fully equipped location that was turnkey ready for a new buyer.
• A strong brand presence under the Moe’s Southwest Grill name.
• Historical high average unit sales volume (pre-Covid)
• For the future, a buyer had the potential to take advantage of:
• A long-term lease offered by the seller since he was the landlord.
• Significant growth potential with the right vision and investment.
• A growth plan that included the installation of a drive through.

Armed with this information, the Certified Restaurant Brokers developed a targeted marketing strategy. They highlighted the location’s potential for revitalization, showcasing how the right buyer could transform it into a thriving business. They coordinated with the brand who indicated that the store was ideal for the addition of a drive through, and all permitting was in place for this important upgrade. Online platforms, broker expertise, and a robust network of more than 125,000 buyers were leveraged to attract the right audience.

The brokers focused on identifying buyers who specialized in working with large brands and had an interest in turning around an underperforming store. This buyer profile was developed to include individuals open to fresh ideas and willing to invest in upgrades to improve a location’s performance. By positioning the sale as an opportunity rather than a challenge, the brokers set the stage for a successful transition.

Finding the Right Buyer

Enter the buyer: a motivated would-be entrepreneur. He was running a very large volume retail location with sales of more than $30 million. He had decades of experience in revitalizing struggling locations for his employer but wanted a business of his own. Without previous experience in the restaurant industry, the buyer understood the potential that the Moe’s location held. They saw beyond the challenges, focusing instead on the possibilities for growth and modernization.

What made this buyer the perfect fit was their alignment with the franchisor’s goals and their financial capacity to make necessary upgrades. They brought a willingness to invest in the location, both in terms of capital and operational expertise. The planned drive through was part of the relaunch and implemented prior to opening. A long-standing track record of success with retail ventures, strong operational experience, and ability to follow a game plan, made them an ideal candidate to breathe new life into the restaurant.

The buyer’s vision included several key upgrades:

• Adding a drive-through to meet modern customer demands for convenience.
• Revamping local marketing to attract the community back to the store and its fresh, inviting atmosphere.
• Implementing operational efficiencies to streamline service and improve customer experience with proactive hiring.

This strategic approach ensured the buyer could hit the ground running, transforming the location into a top performer within the Moe’s Southwest Grill system.

Transforming the Location: From Struggling to Thriving

With the sale complete, the buyer wasted no time implementing their vision. The addition of a drive-through was a game-changer. In a post-pandemic world, drive-throughs have become essential for many quick-service restaurants, offering customers a safe and convenient way to enjoy their meals. This upgrade immediately increased customer traffic, as it catered to changing consumer preferences.

Beyond structural changes, the buyer invested in a full-scale hiring initiative to restaff the location. The interior was scrubbed to create a modern and welcoming environment, while the exterior received a facelift that enhanced curb appeal. These changes signaled to customers that the location was under new management and ready to deliver an improved experience.

The results were nothing short of extraordinary. In its first year under new ownership, the Moe’s location achieved seven-figure sales, exceeding expectations, and becoming a standout performer within the brand. Customer feedback highlighted the improved service, updated facilities, and overall revitalization of the restaurant. What was once a struggling unit on the verge of closure had become a thriving business, thanks to the buyer’s vision and investment.

Lessons Learned for Franchisors and Franchisees

This success story offers valuable insights for both franchisors and franchisees. First and foremost, it underscores the importance of proactive resale management. For franchisors, supporting franchisees in finding the right buyer can prevent closures and protect the brand’s reputation. In this case, the franchisor played a critical role in facilitating a smooth transition and ensuring the buyer had the resources needed to succeed.

For franchisees, the story highlights the potential of struggling units. With the right buyer and a clear strategy, locations that appear to be liabilities can become valuable assets. This requires collaboration with professional brokers who understand how to market these opportunities effectively.

Key takeaways include:

• Strategic Investments Matter: Upgrades like drive-throughs can significantly impact performance and be implemented upon transfer.
• The Right Buyer is Key: Aligning with a buyer who shares the franchisor’s vision and has the capacity to invest is crucial.
• Proactive Management Protects the Brand: Successful resales ensure that struggling locations contribute to the overall health of the franchise system.

Conclusion

The journey of this Moe’s Southwest Grill location is a testament to the power of franchise resales. What began as a struggling unit on the verge of closure became a thriving business generating seven-figure sales in just one year. This transformation was made possible through professional guidance, a motivated buyer, and a shared vision for success.

For franchisees facing similar challenges, this story serves as a reminder that every struggling unit represents an opportunity. With the right strategy and support, closures can be avoided, and businesses can be given a second chance to thrive.

If you’re a franchisee or franchisor navigating the complexities of resales, We Sell Restaurants is here to help with programs for net restaurant sales growth. Contact us today to learn how we can turn your challenges into success stories.