If you're looking to sell your restaurant, it's important to know what factors will influence how long the sale process will take. There are several key elements that buyers will look at when making their decision, so if you can make sure your business is in good shape financially, you'll be well on your way to a quick sale. In this blog post, we'll discuss some of the most important things potential buyers will look at when deciding whether to buy your restaurant.
The average time to sell a restaurant is 6-9 months. However, this is a general timeframe and does not pertain to all restaurant sales. Every situation is different but focusing on these Key Ingredients for a Quick Sale will increase your chances to sell your restaurant in less time.
One of the most important factors in selling a restaurant quickly is having good financial records. Buyers will want to see that your business is profitable and has a history of consistent earnings. Having up-to-date financial statements and profit & loss statements will help show buyers that your restaurant is a wise investment. The Profit and Loss statement tends to be one of the first items that buyers request to look at, so be sure you have this in order before listing on the market.
Another key factor to sell a restaurant quickly is maintaining a positive sales trend. Buyers will want to see that your restaurant is steadily growing in sales year over year. If you can show a potential buyer that your business is continuing to grow, they'll be more likely to make an offer. Buyers are looking for solid sales results now and are less inclined to buy a restaurant solely based on the potential of good sales.
Buyers will also focus on the lease terms and location. The lease should have several years remaining, and the location should be in a good area with high foot traffic. If you have a favorable lease and are in a prime spot, buyers will be more interested in your restaurant. If you are selling your restaurant, be sure to check these three clauses in your lease first.
Buyers may also look at the surrounding market including the demographics. If the surrounding area has a lot of young families, businesses that cater to children may do well. On the other hand, if the market consists mostly of retirees, then a restaurant with a more casual atmosphere would be a better fit.
Is the area growing and are more people moving in? What is the average income in the area? Knowing these things will give you a better idea of what type of buyer you should be targeting.
You may also want to consider the regulatory environment, including the time to acquire a new license or transfer an existing liquor license. In some cases, the length of time it takes to obtain a liquor license can be a deal breaker for potential buyers.
Finally, the condition of the restaurant is also important. Buyers will want to see that your restaurant is well-maintained and in good working order. If you can show that your business is well-cared for, it will help attract buyers and speed up the sale process. You want to get everything cleaned up, in good repair and have it look as good as possible to have great eye appeal. The old saying “you do not get a second chance to make a first impression” is true.
A buyer will usually decide within a few minutes of whether they will have interest in pursuing a purchase. They will often visit as a secret shopper first so sellers don't know who is looking at the business. A bad first impression turns the buyer away.
If you're looking to sell your restaurant quickly, focus on these key factors. By having strong financials, a favorable lease, and a well-maintained property, you'll be in a good position to attract buyers and close a deal quickly.
Selling a restaurant is a complex process, but if you know these key factors for a quick sale and employ the expertise of an expert restaurant broker, you will be well prepared to sell your restaurant in a timely manner.
Who Can Help Me Sell My Restaurant Quickly?
An expert Restaurant Broker can assist you to sell your restaurant quickly. He or she will have a vast network of potential buyers and know how to market the restaurant to those buyers directly. They will also be able to provide guidance on preparing the financials, lease, and property condition so that it is attractive to buyers. When you are looking for help to sell your restaurant, look for these qualities in a restaurant broker to get the job done.
A Certified Restaurant Broker® from We Sell Restaurants has the experience, knowledge, and commitment to sell your restaurant quickly while getting you the best possible price. While some brokers charge in advance for their services, We Sell Restaurants offers a free evaluation and opinion of selling price. If you're looking for help to sell your restaurant quickly, contact a Certified Restaurant Broker® today.
John Jordan, Certified Restaurant Broker® has more than 25 years of direct experience in the restaurant industry. He served as Director of Operations for Ruby Tuesday, Inc., where he helped open over 50 restaurants nationwide. he established new markets for the company in Minnesota, Wisconsin, Nebraska and Colorado. John is also a member of Colorado as n Employing Broker by the Colorado Real Estate Commission.