Buying a Restaurant? Avoid These Mistakes

The pandemic has been lethal on restaurants since March, with thousands of restaurants closing around the country. With all of the uncertainty, you might see a bit of good news and daylight. Your favorite restaurant in your favorite location might be on sale. However, before you jump into that amazing deal, there are a few things you need to think about first.

Mistakes to Avoid When Buying a Restaurant

The first thing you need to do when you are considering buying a restaurant is to check the lease. Many restaurants you might be looking at lease their buildings instead of buying them. You need to really read the lease so that you know the terms and qualifications upfront. If possible, meet with the landlord or the property management company to discuss the lease before you buy it.

Second, have the equipment in the kitchen inspected by a professional. If the restaurant has been running on outdated equipment, you don’t want to find that out after you’ve bought the business. If you get it inspected, you will know upfront what the kitchen can handle.

You need to check the reputation of the business as well. Are there lots of health code violations? What does their rating on Yelp and Google look like? You don’t want to buy a business with a horrible reputation that you then try and solve with the “Under New Management” banner, because that rarely works.

In short, if you do your homework ahead of time, you’ll be able to buy a restaurant that you can turn into something special.

When you’re ready to buy or sell a business, we hope you’ll give Hallmark Business Brokers a call at 941-445-4726, or come by and see us at 230 S Tamiami Trail, Suite 2, in Venice.

5 Must-Ask Questions to Help Your Hire a Business Broker

When selling your business, a business broker can act as an intermediary between you and the buyer. This can reduce uncertainty throughout the transaction and make it less overwhelming. However, not all business brokerage firms are alike, and it’s essential to know these 5 must-ask questions to help you find the right business broker for your needs.

Sometimes Buying an Existing Business Beats Starting from Scratch!

Starting a new business is always a stressful time. All new owners wonder if their market research was adequate, did they develop the right business plan, do they have a recession-proof business and so on. Buying an existing business might be a better choice than trying to start from scratch, and Hallmark Business Brokers can help make that happen. Here are four reasons it may be a better choice to purchase an existing business: