We Sell Restaurants Outpaces Market Trends

While the broader business-for-sale market reported flat performance for restaurant transactions in 2024, We Sell Restaurants defied the odds with an impressive 17.7% growth in transactions during the same period. This success demonstrates the company's unparalleled expertise in the restaurant brokerage space and its ability to outperform general business brokers, even in a challenging market.

We Sell Restaurants also registered an 10.9% increase in selling prices with average selling prices at $274,652 versus last year’s $247,634. This reflects a 22% difference to the median selling price reported by BizBuySell for others selling restaurants who achieved selling prices of just $225,000.

Robin Gagnon, CEO of We Sell Restaurants, said of the 2024 results versus the market, “We Sell Restaurants has achieved another record year demonstrating that our singular focus on the restaurant industry benefits our sellers in attaining higher prices and better results than the industry at large."

The Market’s Performance: A Year of Stagnation

According to BizBuySell's 2024 Insight Report, a nationally recognized economic indicator that tracks the health of the U.S. small business economy the restaurant sector experienced minimal growth. Their report analyzes sales and listing prices of small businesses across the United States based on approximately 50,000 businesses for sale and those recently sold, reporting changes in closed transaction rates, valuation multiples and other economic indicators for the small business transaction market. For the restaurant industry in 2024, they found:

• Transaction volume remained flat compared to 2023.
• Median sale prices increased by 5%, rising from $215,000 to $225,000.
• Financial performance was mixed, with restaurants reporting a 4% decline in median revenue but a 4% rise in cash flow year-over-year.
• Despite these stagnant numbers, We Sell Restaurants surged ahead, proving its specialized approach is more effective than the generalist methods of other business brokers.
  
  

We Sell Restaurants: Breaking Market Norms

In contrast to the flat market performance, We Sell Restaurants reported the following results for the same period:

• Achieved a 17.7% increase in transactions, significantly outperforming the industry average.
• Average selling prices increased by 10.9%, rising from $247,634 to $274,652.
• Maintained a higher success rate in closing deals, thanks to its proprietary systems, extensive buyer database, and Certified Restaurant Brokers.
• Delivered superior results for sellers, ensuring faster sales and better valuation outcomes.

The company’s growth stands as a testament to its focused expertise in restaurant sales, a sector often overlooked or underserved by general business brokers.

Insights from BizBuySell’s Buyer Data: Why We Sell Restaurants Outperformed

The BizBuySell Insight Report offered critical insights into buyer behavior in 2024:

• 60% of buyers surveyed stated that Federal Reserve rate cuts had no impact on their timeline for purchasing, while 17% were encouraged to act faster.
• Tight commercial lending standards persisted, resulting in limited pass-through savings from rate cuts. Many buyers relied on creative financing solutions, such as seller financing.

We Sell Restaurants Difference:
We Sell Restaurants works with a select group of lenders who specialize in restaurant transactions, ensuring deals are funded efficiently. The company also leverages data-driven valuations and seller financing solutions to close deals faster, even in a challenging lending environment.

• • Buyers prioritized recession-resistant businesses (76%) and those with strong cash flow and growth potential.
  • Financial performance was the top factor buyers analyzed when evaluating acquisitions, followed by growth potential and location.
    
    

With a robust database of motivated buyers, We Sell Restaurants aligns buyer preferences with quality listings. The company's proactive buyer outreach and industry expertise ensure that every listing receives maximum visibility and attracts qualified buyers.

• Many buyers delayed transactions due to the uncertainty surrounding the U.S. presidential election, as highlighted by the report.

We Sell Restaurants Difference:
The company’s consistent buyer engagement and tailored marketing strategies allowed it to keep deals moving, despite external market challenges. Transactions increased each quarter of the year with the fourth quarter delivering the strongest performance and hitting a record number of transactions. This was despite the any uncertainty associated with the election.

Eric Gagnon, President of We Sell Restaurants said, “Buyers will always face challenges in acquisitions. The role of the intermediary is to deliver alternative solutions that mitigate the challenges and benefit both parties to achieve a positive outcome everyone in the deal.”

What Sets We Sell Restaurants Apart?

We Sell Restaurants attributes its success to a unique combination of tools, systems, and deep industry knowledge:

1. Specialized Expertise: Unlike general brokers, We Sell Restaurants exclusively handles restaurant sales, allowing the team to provide tailored advice and market insights.
2. Certified Restaurant Brokers®: Every broker undergoes rigorous training, ensuring they are well-versed in restaurant operations, valuations, and transactions.
3. Robust Marketing Strategies: The company’s nationwide marketing campaigns and buyer outreach ensure maximum visibility for every listing.
4. Proven Processes: Proprietary tools like the B.O.S.S. (Broker Operations and Sales System) streamline the sales process, leading to faster closings and higher client satisfaction.
   
   

Driving Growth in a Challenging Market

The challenges of 2024—ranging from high interest rates to election-related uncertainty—did little to deter We Sell Restaurants. By focusing exclusively on the restaurant sector, the company was able to align its strategies with the unique needs of buyers and sellers, delivering exceptional results.

Key highlights of the company’s performance include:

• Faster Lending Approvals: Despite a challenging interest rate environment, We Sell Restaurants focuses on a core set of lenders that understand the industry and fund deals aggressively. These lenders delivered on deal terms based on data drive valuations that resulted in fast approvals and turnarounds on loans.

• Higher Valuations: Sellers achieved higher values for their businesses through data-driven pricing strategies implemented by Certified Restaurant Brokers. The fact that lenders consistently approved funding based on these valuations validated the effectiveness of the pricing approach.

• Strong Buyer Demand: The company’s extensive buyer database, cultivated through years of focused marketing and outreach, was instrumental in driving buyer activity. By connecting motivated buyers with quality listings, We Sell Restaurants ensured steady demand for its offerings. Even in a tough financing environment, the company maintained high engagement with potential buyers through personalized communication, targeted campaigns, and in-depth knowledge of buyer preferences. This proactive approach not only kept deals moving but also attracted a wide range of buyers, including first-time entrepreneurs, seasoned investors, and corporate refugees seeking opportunities in the restaurant industry.

The Path Ahead: A Bright Outlook for 2025

Looking to 2025, We Sell Restaurants is well-positioned to continue its upward trajectory. With a proven track record of outperforming the market, the company plans to expand its reach, enhance its systems, and provide even greater value to restaurant buyers and sellers. Robin Gagnon says, “January is already off to an incredibly strong start with transactions more than 35% ahead of last year and multiple closings still pending for the month.”

She continues, “Small business optimism hit record levels in December, and we are one week into a new administration and legislature promising all the right things to unleash small business growth. That includes making the tax cuts permanent, new tax benefits for small business owners, reduced regulatory requirements and focus on growing the GDP while lowering inflation. If only a few of those come to fruition, 2025 will be a record-breaking year for restaurant sales.”

While the broader market struggles with challenges like inflation, financing hurdles, and economic uncertainty, We Sell Restaurants remains a beacon of stability and growth in the restaurant brokerage industry.

Conclusion The flat performance of the restaurant sector in 2024 underscores the importance of working with a specialized brokerage like We Sell Restaurants. With a 17.7% increase in transactions during the same period, and selling prices ahead of last year, the company continues to set the standard for excellence in restaurant sales. Whether you’re buying or selling, partnering with We Sell Restaurants ensures you’re backed by the industry’s best.

The BizBuySell Insight Report is a nationally-recognized economic indicator that tracks the health of the U.S. small business economy. Each quarter, BizBuySell analyzes sales and listing prices of small businesses across the United States based on approximately 50,000 businesses for sale and those recently sold, reporting changes in closed transaction rates, valuation multiples and other economic indicators for the small business transaction market. Closed transactions are reported to BizBuySell.com on a voluntary basis by business brokers nationwide. Each report includes real small business data on over 70 major U.S. markets and across 65 small business industries.