Restaurants For Sale in Raleigh NC
With the restaurant industry’s steady growth throughout Raleigh over the last several years, buying an existing restaurant may be a good option for many who would like to own their own business.
Restaurants in the US will report $799 billion dollars in sales in 2017. The restaurant industry provides 14.7 million jobs this each year and makes up about 10% of the entire US workforce. It is expected that 1.6 million jobs will be created to keep up with the growing demands of the industry.
A lot of people dream of owning their own restaurant and wonder if it is a good idea to buy an existing restaurant. There can be significant benefits of buying an existing restaurant like brand recognition, loyal customers, great location, trained employees and an instant income.
When looking for restaurants for sale in Raleigh, NC you need to also consider the risks that include poor reputation, declining business, negative brand news, and unprofessional staff.
There are a lot of options within the restaurant space. Options include pizza, subs/sandwiches, fast food, special/natural foods, national cuisines or even high-end food and service restaurants. Restaurants for sale in Raleigh come in all shapes and sizes, budgets/incomes and specialty clienteles.
Restaurants For Sale In Raleigh NC
Restaurants for sale in Raleigh can be a great investment. The great thing about buying an existing restaurant is the ability to verify the numbers. Once you complete Non-Disclosurere Document your business broker will send you the initial financials including the Seller’s Discretionary Earnings. The SDE’s will tell you what the current owners has received the past three years as income and other benefits (retirement/health insurance/etc).
Here are a few questions that you may need to have answered prior to buying a restaurant.
1. Is the lease or building transferable or for sale?
2. Is there an additional debt owed by the restaurant?
3. What is the condition of the equipment?
4. What is the restaurants goodwill in the community?
5. Do you like the food that is currently served?
6. Will the current owner sign a do not compete?
7. What is the current profit margin?
Buying a restaurant for sale in Raleigh isn’t just a hobby. It’s great if you have a passion for the food that you will be serving but in the end, the numbers have to work or you will soon be out of business.
There are many potential landmines that lay in front of someone that hasn’t ever made a purchase of a restaurant. The good news is that your business advisor will help advise and navigate you through the many details of purchasing a restaurant.
Transworld Business Advisors has listed and sold thousands of restaurants over the last 39 years of business. Buying a restaurant is a major investment. In many ways, it is more complicated than opening a new one. Buying an existing restaurant, however, comes with a host of challenges and practical pitfalls to steer clear of.
WHY Is The Owner Selling His Raleigh Restaurant?
This is a critical question and if you are purchasing a restaurant you had better work with a business advisor that can help you determine the REAL ANSWER to this all-important question. While a troubled restaurant owner may not be forthcoming with the precise reason there are ways to get to the bottom line and the actual answer.
A Few Things to Remember
Inspections – Restaurants can be inspected by their local council at any point in the food production and distribution process and owners are not usually told when an inspection will occur. The inspection can include a review of the premises, food, records, and procedures, plus food samples can be taken as well as photographed. Inspectors are required to follow the Food Law Code of Practice. Check with the restaurant’s local council to find out if it has had a Hygiene Improvement Notice and/or a Hygiene Emergency Prohibition Notice which bans the restaurant from using certain equipment or following certain processes.
Liquor Licensing – If your prospective acquisition serves alcoholic beverages, make sure the restaurant’s liquor license is current and not under any threat of being discontinued.
Reputation – In the restaurant business, reputation is everything and word of mouth travels fast. Conduct your own online search using search engines like Google and Bing and using keywords like “reviews” in addition to the restaurant’s name to see what guests and employees have been saying about the business.
Lease Transferability – If the property is leased rather than owned, be certain that the lease for the restaurant is current and that it is possible for it to be transferred to a new owner for similar or better terms.
Kitchen Equipment Condition – Check all kitchen equipment to confirm that it is in working order and that the restaurant is approved by the local council to use the equipment it is using – and for the purpose, it is being used for.
Buy a Franchise Restaurant – Franchise restaurants have built-in demand due to their reputation and name recognition. Like purchasing any business, they require a high initial investment but you will have a strong network of support and a proven track record.
Your KEY partnership during the purchase of a restaurant will be your Transworld Business Advisor.