Buying a Restaurant
Buying a restaurant is an excellent way to get into the restaurant business. Whether it’s a profitable business or not, it is usually a less expensive alternative than building out a lease space from scratch. Construction is not only be costly, but it can take months to complete without bringing in $1 in sales. If a business is profitable than expect to pay for the established sales and operations in place. If a business is not profitable then you are paying for the assets, which can typically includes the furniture, fixtures, and equipment, as well as the build-out that is already in place and usually up to code. If a business IS profitable than besides paying for the build-out, equipment, and furniture, you are also paying for the goodwill of the business which included established sales, existing brand, and proven system.
How much will buying a restaurant cost?
The cost of buying a restaurant includes more than just the listed price. Just because the sales price reads a certain amount, you want to make sure that you have additional money in the bank to cover the other costs that you will start incurring immediately. Other costs that you will need to consider right from the start are utility deposits, rent deposit, closing attorney costs, appropriate business licenses, alcohol licenses, orders with food/alcohol vendors for the first few weeks, pay for employees for first few weeks, any additional equipment, and building adjustments you may want to make. Plus, you need to make sure you have living expenses covered for you and your family to last for a few weeks in case things do not get off to the great start you hoped for.