“The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” – Sir John Templeton
If you study the history of successful business ventures, many of them have started during uncertain times. The food and beverage industry, no surprise, is going through some of the most uncertain times it has ever gone through, in recent years. Most restaurants today (2020) are being forced to shut down due to the global pandemic, and plans to reopen are spotty at best. For many, this long term closure is going to put them out of business. In fact, a quote from Sean Kennedy, member of the National Restaurant Association, states that:
“3% of all restaurants have already announced they are closing their doors forever. That number could jump as high as 11% in just the next few weeks. (June 2020)”
Restaurants are rightful to fear the possibility of permanent closure, and are doing what they can to press on. Many restaurants are looking to technology solutions for instilling healthy restaurant operations, like mobile friendly menu websites and electronic gift cards (so customers don’t have to physically exchange money). At BizPappa, we’ve been helping restaurants get back on track, with a variety of service options.
Not all restaurants will make it..
It’s a sad reality, but with COVID-19 expected to make a prominent return in the fall of 2020, the long term health of restaurants is at jeopardy. For some restaurant owners, this means they need to look into selling their business.
As a potential business buyer, now could be a good time to look into buying a restaurant business. There are some facts that can’t be ignored, and that present incredible long term value for those that are hungry enough to take a bite of opportunity:
- The restaurant industry WILL bounce back in the coming years
- Restaurant owners will likely be selling for lower rates, due to current financial pressures
Indeed, if studying the real estate market holds any merit in the restaurant industry, times of pessimism are often the best times to buy in. If you’re an interested buyer and will need to apply for a loan in order to make a restaurant purchase, interest rates are typically lowest during uncertain times like these- making the opportunity to buy even sweeter.
There are a lot of variables involved in buying a restaurant, such as lease lengths, licenses, depreciable items, and more. Like all things, due diligence is needed in order to make a wise (and smart) investment purchase.
Find a restaurant broker
Like buying real estate, you need to partner yourself with a team who can help close the deal, and who have experience with the nuances of buying and selling restaurants. Buying a restaurant has unique complexities that make it different from traditional real estate, which is why a broker is necessary to complete a smooth deal.
BizPappa is extending its service offerings to help hungry buyers purchase the restaurant of their dreams. BizPappa has access to hundreds of pre-screened prospects as well as full, 24/7 support to help in the purchase process.
While finding a broker might seem simple enough, BizPappa offers unique aspects of the brokerage service that are not found elsewhere. These include:
- Comprehensive data on any property you wish to inquire on
- Instant online NDA (for those high profile deals)
- Concierge team that will partner with you and draw out long term financials
Utilizing a broker can help prevent unexpected financial loss when purchasing a restaurant. Contact BizPappa today for a consultation!