Restaurant Resales are HOT regarding buyer’s demand as restaurant sale prices jump 34% in 2021 compared to 2020. BizBuySell’s Insight Report just released its report for Quarter 2 of 2021. Restaurant resale numbers are showing very promising growth and buyer interest. Restaurant resales headline growth as the buyer market seeks reopening opportunities.
Now with restrictions lifted across most industries, buyers are turning to restaurant acquisitions. Restaurants, specifically, was a sector that was drastically affected by the shutdown is coming back strong. While transactions are up 38% over the same time last year at the height of pandemic lockdowns, they are still 16% below Q2 2019 pre-pandemic levels leaving further room for recovery, according to BizBuySell Insight Report.
The restaurant for sale sector sees growth, with restaurant acquisitions up 17% in the second quarter of 2021. In addition to the bounce back in transactions, sale prices increased 34% versus Q1, tied to a 20% increase in median cash flow, according to BizBuySell Insight Report.
Dominique Maddox of EATS Restaurant Brokers says, “Labor Shortage, former employees seeking independence, and restaurant owners seeking retirement are increasing the number of restaurant acquisitions on the market.”
Restaurant Sellers and Restaurant Brokers will be happy to know that restaurants for sale during quarter two of 2021 had 190 median days on the market compared to 219 days quarter two of 2019. This data shows that restaurants are popular when it comes to buyer demand.
Dine-in establishments are expected to increase in market value as restaurant restrictions are lifted in most states. They are at the same time experiencing pressure for the labor shortage. A majority of restaurants have made tough decisions that have included reducing operating hours, closing for days, or going out of business.
The business-for-sale market continued to make gains in the second quarter of 2021, with closed transactions up 5% over the previous quarter. For bargain hunters, this may signal a closing window of the great opportunities made available a year ago, according to BizBuySell’s Insight Report.
For more information on the restaurant market and other available consulting services or a complimentary restaurant valuation, contact Dominique Maddox at 404-993-4448 or by email at email@example.com. Visit our website at www.EATSbrokers.com.Read More
The decision to sell a franchise restaurant can be challenging in today’s market. The good news is that if you own a Restaurant Franchise, buyers are lining up with interest. Close to 60%-70% of the restaurants for sale in Georgia that sell are franchise concepts.
Franchise concepts are growing right now, while independent owned restaurants are declining. Franchise Restaurants are popular because they come with a proven system, support, business model, logo, IT support, and reputation.
When it is time for a Franchisee to exit the business, they have a couple of choices on how to sell their restaurant. One of the most significant considerations when selling a franchise restaurant is, do I sell to a current franchisee? Or do I sell to a non-franchisee?
Dominique Maddox, a Restaurant Broker and Founder of EATS Restaurant Brokers says, “ selling a franchise restaurant to a current franchisee is much different from selling to a new franchisee. Current franchisees understand the brand; new franchisees need much information to educate them on the Franchise Brand, process, qualifications, training, and closing process”.
Who do you sell your restaurant to, a current Franchisee or a Non-Franchisee? EATS Restaurant Brokers discuss the Pros and Cons:
PROS Selling to an existing Franchisee:
-Dealing with an educated buyer about the franchise
-Has already been approved by the franchise
-The capability of closing a deal fast because they don’t require the standard 4-6 weeks training.
CONS of Selling to a current Franchisee:
-They usually undervalue the business
– They understand the operation of the franchise brand
-They are harder to impress
-It can be challenging for them to get financing
PROS Selling to a Non-Franchisee:
– Can get a higher offer price
– They are excited about the new opportunity
– Usually are not experienced, restaurant owners
– Can sell them the opportunity for growth or proven sales numbers
CONS Selling to a Non-Franchisee:
– Lots of education about the buying process is needed
– Have to get approved by Franchisor
– Have to do the required training before a new franchisee can complete the sale. Training process is usually 4-6 weeks
– Closing process can take 2-4 months
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.comRead More