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2020 has undoubtedly been a challenging year for business owners around the world, but perhaps non more-so than the hospitality industry- specifically restaurants. Through all the uncertainty however, there can be found opportunities that yield long term rewards for those who are willing to take risk. Today I want to outline a few possible investment opportunities for individuals captivated by hunger to take advantage of the restaurant industries uncertainty (pun absolutely intended).

 

 

  1. Buy into a restaurant franchise

Though many companies within the restaurant industry are feeling financial pressures, there is no doubt that the industry will, one day, fully return. In fact, many restaurants around the world already offer dining experiences that accommodate to regional health regulations, as well as others that have adopted contactless delivery/service options. It would seem that Taco Bell and similar fast-food locations were ahead of the curve with their drive-thru offering.

Buying an entire restaurant can be daunting, from a financial and mental standpoint, but you can absolutely buy into the ownership of a franchise with partial ownership (depending on the deal). This way, the responsibility of the team is distributed amongst several individuals. Of course, you’ll still want to evaluate the foot traffic, location, and other relevant metrics about the establishment, before buying in. At BizPappa, we have multiple franchises that are selling partial ownership- contact us at info@bizpappa.com to learn more about these!

  1. Upgrade restaurant equipment

If restaurants are seeing less business, then you can be sure that their suppliers for all things equipment (machinery, napkins, utensils, etc) are suffering as well. Many of these suppliers have reduced costs of their equipment, trying desperately to stay afloat during covid 19. That $5,000 USD piece of machinery might now be offered for $3,000 USD, or even less, depending on the financial pressures that the supplier is experiencing. Even if you don’t own a restaurant yet, you might consider stocking up on necessary goods ahead of time. Take advantage of the situation and make a smart investment!

  1. Purchase restaurant stocks

Likely the least challenging opportunity to take advantage of during covid 19, is to purchase restaurant group stocks, as many of them are likely down from their usual value. Companies like Pizza Hut, Domino’s Pizza, Burger King, all might seem cheap, but these large companies are the ones that tend to endure through global, economic hardship, and thus are a safe financial bet to invest in. Remember that you don’t need to have customers to take advantage of opportunities in the restaurant industry.

  1. Invest in more deliverable and contactless solutions

After covid goes away, it’s likely that people will continue to prefer deliverable and contactless services for accessing restaurants. That means now is the right time to devise a system for satisfying these requests, and offering it indefinitely. It’s no surprise that companies like Uber Eats and Postmates have revolutionized the food industry, and it’s unlikely that people will switch back to solely going out to eat, which means restaurants need to establish long-term solutions for deliverable options. From a bandwidth perspective, now is the right time to invest in these systems, when restaurants don’t have to focus as much on the in-dining experience. Consider adding your location to delivery apps, offering QR codes for in-diners (we can make you some, learn more here), and other contactless payment options.

In conclusion, there are many opportunities for restaurants and potential restaurant owners who take advantage of the uncertainty around covid 19. The key is, to take calculated risk and not wait too long. Though Coronavirus may at one point be deemed no longer a pandemic, there will always be obstacles presented, and equipping ourselves with the tools and ideas to overcome them, is essential. Contact our team at BizPappa and we’ll help you buy or sell a restaurant business, today!

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