Listing a Restaurant for Sale
When listing a restaurant for sale, you should include the features that will make your restaurant stand out from the competition. These should be features that your customers will not be able to get elsewhere in your neighborhood. If you are leasing space, you may want to list the rental costs at the time of sale. Market rents are usually about $5.00 per square foot. In contrast, your current tenant is renting it for only $2.00 per square foot for ten years. He plans to turn the space into a restaurant in the future. Lastly, keep in mind the “New Car Effect”: a new car loses value immediately after driving off the lot.
Cash flow positive restaurants for sale
When it comes to owning a successful restaurant, one of the most important things to keep in mind is how to keep the cash flowing. In order to do this, restaurateurs should keep their overhead costs down while maximizing their gross margin. This will help them to run the business without going under the financial strain of debt.
Creating a budget is the first step in the planning process. A quarterly budget will help restaurant owners stay on track with their finances. For example, the first quarter of the year may have less business than usual, while the summer months might be the best time to make a big purchase. Keeping a budget will also help them keep an even operating cash flow.
Reasons to price a restaurant
In determining the value of a restaurant, one must consider the buyer’s preferences. Price alone is rarely the determining factor, but the personality and location of the establishment play an important role in the customer’s decision. For example, a bistro that lacks the iconic Georges may not be worth as much as one with Georges. Similarly, the terms of the lease will also affect the price of the restaurant.
Despite the importance of knowing how to price a restaurant, the process is an art and a science. It requires intuition, but it can be an important part of your marketing plan. There is no magic formula, and it can be difficult to get started. Luckily, five steps will guide you in the right direction.