Restaurant buyer stages:
Find A Restaurant
- Select a broker who has collected all the pertinent data and done the research on the restaurant you want to buy. The research includes the location, the existing kitchen configuration and information of the surrounding area so you can identify your potential competition.
- Tour the facility, plan a visit to the restaurant with the agent\seller. Make note of the existing interior and exterior equipment. Identify the available parking for the restaurant you want to purchase.
- Use a specialized restaurant broker to ensure the business is priced right, and will help throughout the transaction including the current lease terms
- Once you have identified the restaurant you want to purchase, the next step is submitting your business plan to the current owner/landlord for approval. Select a broker that helps create tailor-made business plans and offers a 100% success rate on business plan submission. This 100% success rate benefits you as the buyer.
- Set up financing. Arrange the required funds to purchase the restaurant and make financial information available to the landlord/seller. Showing that you have the required funding in place builds confidence with the landlord/seller and can expedite the purchasing process.
- Establish the proper corporate entity that will be purchasing the existing restaurant. Your corporate entity can be filed and established as a sole proprietorship, partnership, LLC or S-Corporation. Each corporate entity has specific advantages and disadvantages.
- Submit change of ownership with the county without making any changes to kitchen equipment and floor plan. Submitting/filing with the county will enable you to start business on day-one of operations. Modify the floor plan only if needed. To avoid delays in starting operations, begin business with the existing restaurant setup, then modify the setup post-launch by applying for the necessary permits
- Soft launch – On day-one, don’t include all your potential menu items. Plan and prepare a limited menu. BizPappa strongly suggests that you offer the limited menu for a week before announcing your grand opening
- Integrate POS to both your payment and inventory tracking systems
Determining the value of a restaurant is always tricky because you need to separate the real assets and liabilities of the company from the value