2008 WILL
BE A STRONG YEAR FOR BUYING & SELLING RESTAURANTS,
BARS & NIGHTCLUBS
Based on the busy activity we have experienced on both
the selling and buying sides of our business it
appears that 2008 will be another very busy year for
Restaurant Realty Company.
Unlike many other businesses that have been
negatively impacted by the slow down of the economy
during these challenging economic times there seems
to be an abundance of both sellers and buyers
for restaurant, bar and nightclub
opportunities for the reasons indicated below.
1)
There are a number of people that have been
unemployed and can't find adequate jobs so they are
considering going into business for themselves
rather than working in jobs they really are not
interested in.
2)
There are a large number of foreign buyers that
realize that they can get a big bang for their buck
by purchasing a business in this country due to the
weak dollar abroad.
3)
There is the normal flow of buyers whose expertise
is limited to working in restaurants, bars and
nightclubs
and feel this is the only industry they wish to
pursue.
4)
There are more sellers coming into the market based
on the changes in the economic climate.
Some operators of higher price point
operations are looking at selling due to customer's
reduced levels of discretionary income while others
need to sell due to increased operating costs.
5)
There are a number of families that work together
and a restaurant is a good business to work together
due to the large number of positions required to run
a restaurant.
6)
There are a number of sellers that are baby boomers
that have been in these businesses for a number of
years and are tired and/or burned out or are ready
for retirement and are motivated to sell.
7)
There are the normal number of sellers that want out
of their business as a result of the
following:
health reasons,
divorce,
relocation, and partnership disputes, etc.
8)
There are a number of sellers that are involved in
owning and operating more than one business and they
have determined that they can be more successful
in focusing all of their activity in one business
rather than spreading themselves too thin over
several businesses.
The strongest demand from buyers are businesses that
have one or more of the following characteristics:
a. strong cash flow, b. franchises,
c. 5 day a week (Monday-Friday) breakfast and
lunch operations,
d. cocktail lounges without food,
e. popular priced lunch and dinner operations
with cocktail lounges,
f. coffee houses, g. pizza operations,
and h.
deli and sandwich operations.
If you are thinking about selling your
business please consider using Restaurant Realty
Company as we have a very comprehensive marketing
program
which has resulted in a
close rate that is almost three times the national
average and
sales of nearly 600
restaurant, bar and nightclub businesses since 1996.
Arthur B. Zimmerman
My Father & Founder of Zim's Restaurants
Art
Zimmerman, my father and mentor and founder and
chairman of Zim's Restaurants passed away on January
22, 2008.
Dad was born on February 12, 1920 in Poland
and immigrated to the US at the age of 18 months as
his parents moved to San Francisco as his father had
a relative here. Dad helped support his family at an
early age from his newspaper route and produce
market job.
After graduating from high school Dad was
drafted into the Army during World War II and went
into the infantry.
While eating his K rations in Europe Dad
would dream of the day he would come home and eat a
thick juicy hamburger and drink a rich milkshake and
this is how he got the idea of opening up a
specialty restaurant serving only high quality
broiled hamburgers with a limited menu including hot
apple pie, milkshakes and assortment of other
beverages.
When Dad came back from the war he borrowed a few
thousand dollars and in 1949 opened up a small U
shaped 22 seat counter operation at the corner of
Lombard and Steiner in SF and called it Zim's.
The emphasis of his operation was quality and
he used whole choice chucks for his hamburgers which
were trimmed and double ground and made into
hamburger patties daily.
Dad used real ice cream for his milkshakes
and had a special hot apple pie with cinnamon sauce
made for his customers.
This business became very successful and Dad
opened a second unit and then additional units and
for some 45 years Zim's Restaurants was the largest
restaurant chain in San Francisco with 12
restaurants.
Throughout my fathers career he had close to
35 restaurants throughout Northern California.
I learned many things from my father over the years
but I will always remember his commitment to quality
food, excellent service in a well maintained
premises and his pledge that the customer is always
right.
