Buy or Build ? Which is Best For You ?
There are myriad of details to juggle when you want to buy a business. As an aspiring restaurant owner, debating between buying an existing restaurantor building a new restaurant is a constant struggle.Buying an existing restaurant certainly has an edge over building a new restaurant. If you are searching for restaurants for sale in Seattle, Tacoma, or near you, then let’s walk through the benefits of purchasing a new restaurant.
Existing Customer Base
When you buy a restaurant that’s already been open for a few years, this business will have developed loyal and regular customers.An existing customer base is an added advantage from day one. You’ll get customer flow, and you’ll be required to invest less money into marketing. Food enthusiasts will be aware of your restaurant and will likely want to try your food. At this stage, a new owner will believe in their food quality and accept “word of mouth” marketing that long-time, loyal customers provide.
Make sure to retain the restaurant’s current phone number.Retaining the phone number will allow you to receive phone calls from the previous owner’s loyal customers.
Cost Effective & Reduce Time
Buying a current restaurant is always far less expensive when compared to building a new restaurant. If a restaurant/business is vacant, the landlord will be more than willing to make a deal to find a new tenant.
Once the new owner takes occupancy and does not change the existing layout\floor plan or the equipment arrangement under the hood, then the new owner can easily operate the business after the ownership has officially changed hands. At this point of the transaction, the new owner should schedule the fire inspection in the next few following weeks. In short, start-up time for an existing restaurant is minimal. If there is a change to any of the equipment or the equipment arrangement under hood, then it is vital a fire inspection be scheduled.
Equipment and Inventory
In most cases when a restaurant is purchased the business already includes equipment and inventory. Be aware that purchasing all new equipment and inventory (dining table, chairs, POS (point-of-sale), phone, etc.)will be double the cost compared tousingthe current equipment and inventory. Having existing equipment and inventory makes the transition from the previous ownership to new ownership virtually seamless.
Building a new restaurant includes more steps to be completed before the doors to the restaurant can be opened to the public. The major hurdles include:
- Acquiring all permits, including a public health food permit.
- Scheduling a fire inspection from the city fire department. The fire inspection can be very time-consuming.
- The erratic relationship working with individual contractors.
Currently operating restaurants will have up-to-date health licenses, a food safety rating, and a fire department inspection report. Asavvy owner will make sure that the restaurant is complying with the city’s most current codes and ordinances and will update the city of the restaurant’s change in ownership. It’s important for restaurant owners to evaluate all the options and consider which opportunities offer the most advantages.
Locating a prospective restaurant in the desired area is possible. Bizpappa is the modern platform to find restaurants for sale or lease in your city. If you are asking yourself, “Where do I find restaurants for sale near me?” Bizpappa is the answer!