The restaurant industry is one of the most challenging industries to make a living full-time. Most restaurant owners find themselves working 40-60 hours a week, and the work demands continue to follow them home. This demanding schedule can have a negative effect on the home with missing important children events or missing out on valuable time spent with love ones. Some owners find it’s best if they sell their restaurant and focus on what’s most important.
Money is the #1 reason restaurant owners want to sell. The money demands to operate a restaurant can be overwhelming and challenging for restaurant owners. The fix costs to operate a restaurant, making payroll, fixing equipment, and the unpredictable events can deplete an owner’s emergency funds quick. Some owners understand selling a restaurant that is profitable and has good books and records can be very lucrative. The best part of our job is to see restaurant owners smiling at the closing table looking at a check to fund their retirement.
It’s common for parents to buy a restaurant and assume their kids will take over the operations but this usually is not the case. Things have changed from the times restaurants were operated by generations of the same family. Most parents find their kids don’t want to operate the business and don’t have another succession plan.
Health issues can be very unpredictable and damaging to a restaurant owner. Most successful restaurants need an owner/operator for the business to be successful. Once health issues start to negatively affect the ability of a restaurant owner, this could lead to sales declines, food quality declines, staff commitment decline, and could lead to the closure of the business.
The lease commitment can be one of the biggest commitments you make when operating a restaurant. Most landlords like to lock in tenants for 3-5 years with monthly increases every year. Landlord will require tenant to be personal guaranty, which makes it difficult for restaurant owners to get out of leases.