Don't Wait Until It Is
Too Late!!!
In
today’s active selling climate it is important to
have your business positioned as favorably as
possible. We are finding more frequently that
sellers are not maximizing potential profit from
their business’s sale because they have waited too
long to put their restaurant on the market. Here is
a list of things that need your consideration if you
want to maximize the value of your business. These
questions are generated from recent experiences with
a significant number of our clients:
1. Are
your fixtures and equipment in good working order
and what equipment is included in the sale?
This
seems to be a major issue with potential buyers
as a significant part of the value of your
business can be perceived from what equipment,
furnishings, etc. are included with the sale.
2. Do you
have enough time left on your lease, is it assumable
and will the landlord cooperate with a new buyer?
The
premises lease is one of the most important
elements of the sale and is the major reason
most deals fall apart. Ask your landlord up
front what his posture is regarding this issue.
3. Are
your financial records current and accurate?
Remember
that a large part of the value of your business
can be based on what your financials show.
4. Can
your restaurant pass the special health inspection
required at the sale of your business?
Please
do not take a chance that your site won’t pass
the inspection. Get a list of the requirements
to know what the standards are before going into
the sale so that corrective steps can be taken.
5. Do you
keep your restaurant as clean as it should be?
First
impressions are important with buyers.
6. Are
there enough customers in your restaurant during
meal periods so that potential buyers feel secure
about buying your business?
I’ve had
a couple of restaurants for sale for some time
and the main reason we’re not getting offers is
because there are very few customers in the
restaurants. If this is your situation you may
want to close the business before marketing the
restaurant for sale.
7. Is the
location still favorable?
Certain
areas have been greatly impacted due to the
current economic downturn and until these areas
change buyers will not be interested in buying
in these areas. We are finding that many sellers
are waiting too long to answer the questions
mentioned above and it becomes more difficult at
the seller’s desired asking price to move a
business that doesn’t keep up its standards. If
you have waited too long, Restaurant Realty can
assist you in the sale by advising you on what
should be done to take remedial action in your
specific situation. Restaurant Realty is
specially adept in handling lease negotiations,
and advising you regarding presenting financials
in the best light possible.
Restaurant
Realty Has Sold Over 250 Restaurants, Bars And/Or
Clubs Has Over 2,000 Buyers in Its Database
Since 1996 we have sold over 250 restaurants, bars
and/or clubs and we have over 2,000 active buyers in
our data base who receive email broadcasts every two
weeks regarding our new, price reduced, featured and
coming soon listings We have 100 new buyers
registering and added to our data base each month.
Restaurateurs of the Quarter -
Jocelyn Bulow Of Plouf & Chez Papa
Jocelyn Bulow’s rise to restaurant stardom has been
rapid. A native of Nice, France, he graduated from a
culinary school in France and started his career as
a maitre’d at La Couple in Paris. Jocelyn has
traveled far in his career from Paris to New York
and finally the past 5 years on the San Francisco
culinary scene. He is a partner in Plouf (French
Seafood Bistro at 40 Belden Place, SF) which has
been one of the top 100 restaurants in the Bay Area
for 7 years in a row and is a partner in Chez Papa
(Provencal Cuisine at 1401 18th St, SF) which
recently received 3 stars from Michael Bauer, a
leading S.F. food critic.
Jocelyn and
his associates will be opening a new restaurant,
sold to him by Restaurant Realty, at 288 Connecticut
St, in the Potrero Hill District. The restaurant,
called Mosaic will be opened for lunch and dinner
and it will serve upgraded tapas featuring south of
Spain and North African cuisine. Some of the menu
items include
1) banderillas – white
anchovy, green olives,
2) manchego cheese with
preserved quince and marinated beets,
3) scallops ceviche with
citrus and arbor chile,
4) salted cod with apples,
raisins, almonds and pinenuts and
5) pumpkin couscous with
seven vegetables.
We wish Jocelyn and
his staff much continued success.
