6 Top tips for selling restaurant business
NOTE: The following tips are for selling a leasehold property.
Selling a restaurant business was never straightforward and will never be, except being extremely lucky. Market is intensely challenging considering the demand and supply ratio, more restaurants for sale and very low demand. Lately there has been rapid closures in hospitality sector, especially independent restaurants.
If you are thinking of selling restaurant business, check out the top 6 tips below to ensure maximum premium with less hassle.
Don’t change your mindset
The biggest mistake any restaurant owner can do is changing their approach towards the business itself. Yes, you want to sell it, but once you change your mindset towards your business, it will have direct impact on your day to day business which may result in poor customer service, low staff moral and ultimately loss for you. Selling a restaurant business is similar to selling a house. Make sure the premises are well maintained and business is operating in optimum and finest way.
Go Through the Lease Paper and if required meet your solicitor
Make sure you have all the legal papers in place. Some lease papers are really complex. Verify and ensure its terms and conditions, for example, is it protected by renewal Act, what’s the rent review terms etc.
Organise your accounts
One of the most important aspects, buyers are interested in other than the lease terms. If you expect high premium for your restaurant, ensure that you have full accounts available to answer any question a prospect buyer may ask, like weekly business, total expenses, profit margin etc. No buyer would be interested or attracted in business operating in loss.
Organise other legal documents and paper works
Besides lease, make sure you have copies of other legal papers like license, supply contracts, equipment leases etc. The buyer will want to know the cost and duration of these, as well as whether they can be transferred.
Keep it as confidential as possible
As pointed in opening paragraph, selling restaurant business is never easy. It is time consuming, frantic and slow process. Sometimes it may take even years, before you find a right buyer. Hence, keeping confidential will help you to maintain the staff morale and customer flow alike.
Last not the least, look after your employees and staffs.
Even though we advise you to keep the selling confidential from your employees, but you must consider how you can help them to settle with the new buyer in a best possible way. If negotiation is at its closing stages, inform them or help them to find a new job if you can. They have been loyal to you and now it’s your turn to show loyalty.