How to Sell a Restaurant- Telling the story
How to sell a restaurant in today’s market only months after the Covid-19 pandemic crippled the restaurant industry is a challenging task. EATS Restaurant Brokers understands selling a restaurant is just not about the tangible items or the goodwill. Buyers in today’s market want to know what the story is of the restaurant. How has covid affected restaurant sales?
Dominique Maddox a Restaurant Broker and Founder of EATS Restaurant Brokers says, “when I take a restaurant for sale listing, I want to know the story about the restaurant. Every Business Broker can look at the Profit and Loss statements, but most cannot tell the story of the restaurant to a buyer, because they did not ask the owners the right questions”.
When I am Telling the story of a restaurant, I want the potential buyers to understand the strengths, historical success, and possible future of a restaurant”.
EATS Restaurant Brokers provides tips to restaurant owners for “Telling the story”
1st Review the financial numbers from 2019 and get a monthly average for the sales, compare the numbers to the 2020 sales numbers. How much of a monthly decline or increase do you notice? In the past 3-months how close are monthly sales averages compared to 2020?
EATS Restaurant Brokers advice: If your sales have declined from 2019 to 2020, know your historical success. Is March-May your busiest months and your business was affected negatively by the pandemic? How were your monthly sales history from 2017-2019? What areas of your business were affected the most dining in, catering, and how are those areas now affecting sales now?
2nd Restaurant owners should understand the SWOT analysis of the business before they list for sale. SWOT analysis is a strategic planning technique used to help a person or organization identify strengths, weaknesses, opportunities, and threats related to business competition or project planning.
Restaurant owners should be about to tell the story about the strengths and opportunities of the restaurant. The strength of the business is the “Sizzle”, meaning why should a buyer considering purchasing the restaurant. Think about how is your social media, how does your menu look online, do you have Google Reviews?
EATS Restaurant Brokers advice: Provide your Restaurant Broker with selling points about your business that would encourage a buyer to purchase your restaurant. Provide information on expenses that can be reduced ex. Food cost or labor cost. What changes can be made to improve the business, and why should a buyer make the changes?
Selling a restaurant is an art and science at the same. Telling the story of the restaurant helps a buyer understand the strengths, opportunities, and value of the business. Next time you want to sell your restaurant do not just list it for sale, tell the story!
Thinking about selling a restaurant contact EATS Restaurant Brokers. For more information on the restaurant market and other available consulting services or restaurant valuations, contact Dominique Maddox at 404-993-4448 or by email at firstname.lastname@example.org. Visit our website at www.EATSbrokers.com