How to Choose the Right Restaurant Broker to Sell Your Business

Selling your restaurant is a big decision, often representing the culmination of years of passion, sacrifice, and hard work. Whether you're retiring, relocating, or pursuing a new venture, the broker you choose can profoundly impact the outcome—determining whether you secure a top sale price, close quickly, or maintain peace of mind throughout the process. A specialized restaurant broker is not just a luxury; it’s a necessity for navigating the intricate landscape of restaurant sales.

Unlike general businesses, restaurants face unique challenges. These include: health inspections, equipment valuations, liquor license transfers, lease assignments, and, in some cases, franchisor approvals. These complexities can derail a sale if mishandled. Industry experts estimate that roughly 20% of restaurants change ownership annually, yet many fail to achieve their full value due to inadequate representation. A skilled restaurant broker maximizes your sale price, minimizes time on the market, and safeguards confidentiality, turning a potentially overwhelming transaction into a strategic, streamlined exit.

This guide outlines how to select the right restaurant broker, offering actionable steps to ensure your sale is both profitable and efficient. By choosing a specialist with the right expertise, you position your business for success in a competitive market.

2. Understand What a Restaurant Broker Does

A restaurant broker is a licensed professional who specializes in facilitating the sale of foodservice businesses. Unlike general business brokers, they possess deep knowledge of the restaurant industry, addressing its unique demands with precision. Their role encompasses:

• Valuations: Assessing your restaurant’s worth using financial statements, equipment inventories, and cash flow models. For example, a broker might use a multiple of discretionary earnings to set a competitive price.
• Negotiations: Navigating lease assignment clauses, negotiating deal terms, securing landlord approvals, franchise approvals, and managing the closing checklist can significantly affect a buyer’s interest.
• Licensing and Compliance: Overseeing liquor license transfers, business permits, and health code requirements, which vary widely by state and municipality.

Confidentiality is critical in restaurant sales, as early disclosure to employees, vendors, or competitors can disrupt operations or lower morale. Top brokers protect your privacy by requiring Non-Disclosure Agreements (NDAs) before sharing sensitive details. They also employ targeted marketing, listing on national ad platforms and leveraging exclusive buyer networks. According to We Sell Restaurants, brokers with restaurant-specific databases can reach 10 times more qualified buyers than generalists, accelerating sales and optimizing prices.

For instance, consider a family-owned diner in Atlanta. A specialized broker might highlight its loyal customer base and prime location to attract buyers, while discreetly managing inquiries to avoid alerting staff. This expertise ensures a smoother, more lucrative sale.

3. Prioritize Relevant Experience

Not all brokers are created equal, and restaurant sales demand industry-specific expertise. When evaluating candidates, focus on their track record by asking:

• How long have they been selling restaurants? A broker with 5–10 years of experience is better equipped to handle challenges like lease disputes or health code issues, which are common in restaurant deals.
• What types of restaurants have they sold? A broker who has closed deals for fine dining establishments may struggle with a quick-service franchise, and vice versa. Ensure their experience aligns with your business model.
• Are they selling other types of businesses? While it is possible to represent dry cleaners, restaurants and daycare centers simultaneously, it is rare that a generalist will net the same results as a specialist.
• Do they understand your market? Local knowledge is vital for lease negotiations and identifying buyer demographics. For example, a broker in Miami should know the city’s competitive dining scene and tourist-driven demand. However, national reach is equally important to attract out-of-state investors, especially for high-value or franchise properties.

Request a list of recent transactions to verify their success. A broker who has closed 20 restaurant deals in the past two years, for instance, is likely more reliable than one with only a handful. Past performance is a strong predictor of future results.

Case Study: An Atlanta café owner hired a broker with extensive experience in urban markets. The broker’s familiarity with local lease trends and buyer preferences led to a sale 20% above the initial valuation, closing in just four months. This underscores the value of niche expertise.

4. Verify Certifications and Credentials

Credentials reflect a broker’s commitment to professionalism and industry standards. Key qualifications include:

• Certified Restaurant Broker (CRB): Offered by We Sell Restaurants, this is the only credential tailored to restaurant brokers. It covers valuation, due diligence, lease agreements, and foodservice operations, ensuring comprehensive expertise.
• Professional Affiliations: Membership in the International Business Brokers Association (IBBA) or International Franchise Association (IFA) signals adherence to ethical practices and ongoing education.
• State Licensure: In many states, brokers must hold an active real estate license to handle business sales. Operating without one is a red flag, as it may indicate a lack of accountability or legal compliance.

Robin Gagnon, co-founder of We Sell Restaurants, emphasizes, “A CRB designation ensures your broker understands the nuances of restaurant sales, from equipment appraisals to franchise transfers, which can make or break a deal.” Verifying credentials provides confidence that your broker is equipped to manage your sale effectively.

Additionally, check for continuing education. Brokers who attend industry conferences or complete advanced training are more likely to stay updated on market trends and regulatory changes, enhancing their ability to serve you.

5. Evaluate Marketing Strategy and Buyer Network

A broker’s marketing strategy directly influences your sale’s speed and profitability. Ask detailed questions to assess their approach:

• How do they promote listings? Top brokers use a multi-channel strategy, including high-traffic online platforms, proprietary buyer databases, email campaigns, video tours, SEO optimization, and social media for turnkey or franchise listings. For example, a well-crafted video showcasing a restaurant’s ambiance can attract 30% more inquiries, per industry reports.
• How do they protect confidentiality? NDAs should be mandatory before sharing your restaurant’s name, address, or financials. A breach could lead to staff turnover or competitor interference.
• Do they market nationally? A national buyer pool expands your reach, especially for unique concepts or franchises. BizBuySell reports that 25% of restaurant buyers come from outside the seller’s state, highlighting the importance of broad marketing.

A robust buyer network is equally critical. Brokers with established relationships—built over years of deals—can connect you with pre-qualified buyers, reducing time on the market. For example, a broker with a database of 5,000 active buyers can generate offers faster than one relying solely on public listings.

6. Interview with Purpose

Selecting a broker is akin to hiring a key executive. Conduct a thorough interview, asking pointed questions to gauge their expertise:

• What’s your listing-to-closing ratio? A ratio above 70% indicates a broker’s ability to convert listings into sales.
• How do you determine valuation? They should use data-driven methods, such as cash flow multiples and market comparables, not arbitrary estimates.
• What’s your average time to close? Industry benchmarks suggest 4–9 months for restaurant sales, depending on complexity. A broker’s track record should align with this range.
• How do you qualify buyers? They should vet buyers for financial capacity (e.g., proof of funds) and intent to avoid wasting your time.
• What’s your process? Expect a clear roadmap, from valuation and listing to due diligence, legal prep, escrow, and closing.

Transparent, confident answers signal competence. A broker who hesitates or provides vague responses may lack the experience you need. Eric Gagnon, president of We Sell Restaurants, advises, “Ask for specifics—how they’ve handled tough deals or overcome obstacles. Their answers reveal their problem-solving skills.”

7. Demand Clear Communication

Restaurant sales often span several months, making consistent communication essential. Clarify expectations upfront:

• Update frequency: Weekly or bi-weekly reports on buyer inquiries, showings, and market feedback keep you informed.
• Accessibility: Will you work directly with the broker or a junior associate? Direct access ensures clarity and accountability.
• Communication style: Confirm their preference (email, phone, text) aligns with yours for seamless collaboration.

Poor communication can lead to missed opportunities or uncertainty. A responsive broker, by contrast, builds trust and ensures you’re never left in the dark. For example, a broker who provides weekly updates with actionable insights (e.g., “Buyers are hesitant due to lease terms; let’s negotiate with the landlord”) empowers you to make informed decisions.

8. Check References and Reviews

References and reviews offer a window into a broker’s performance. Take these steps:

• Online Research: Explore Google Reviews, the broker’s online testimonials, social media channels and more for feedback on service quality, responsiveness, and results. Look for patterns—consistent praise for closing deals or complaints about delays.
• Seller References: Speak with past clients to learn about the broker’s process, challenges, and outcomes. Ask specific questions, like “How did they handle buyer negotiations?” or “Were there unexpected hurdles?”
• Restaurant Focus: Confirm they’ve sold restaurants, not just retail or service businesses. A broker with limited restaurant experience may struggle with industry-specific issues.

Pay attention to how brokers respond to feedback. A professional who addresses negative reviews constructively demonstrates accountability. According to a 2023 BizBuySell survey, 85% of sellers cited “trustworthy reputation” as a top factor in broker selection, underscoring the importance of vetting.

9. Understand Fees

Broker fees are standard, but transparency is key. Ask:

• Commission rate? Most restaurant brokers charge 10–12% of the sale price, with higher rates for smaller deals and lower rates for multimillion-dollar transactions.
• Upfront or hidden fees? Reputable brokers avoid large pre-listing fees or surprise costs, as these can erode trust.
• What’s included? Valuation, marketing, buyer vetting, and deal management should be part of the commission, not add-ons.

A success-based fee structure aligns the broker’s incentives with your goals, motivating them to secure the highest possible price..

10. Final Thoughts: Choose a Restaurant Specialist

Your restaurant is more than a business—it’s a legacy. Entrusting its sale to a generalist risks undervaluing its unique assets, from prime locations to loyal customer bases. A specialized restaurant broker understands the foodservice industry’s nuances: equipment appraisals, lease dynamics, licensing intricacies, and franchisor requirements. Their expertise ensures a confidential, efficient, and financially rewarding sale.

As you prepare to sell, reflect on your goals—maximizing profit, minimizing stress, or transitioning quickly. The right broker will align with these priorities, guiding you through every step with skill and dedication. “The difference between a good broker and a great one is their ability to anticipate challenges and deliver results,” says industry expert Robin Gagnon. Choose wisely—expertise, process, and performance are the cornerstones of a successful sale.

Whether you’re retiring, relocating, or embarking on a new chapter, a restaurant specialist is your key to a seamless exit. Invest the time to find the right partner, and you’ll reap the rewards of a well-executed sale.