best things to know about buying a restaurant?

Answer 1

Don't. The average restaurant stays in business about 6 months. poor investment.



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Answer 2

The reputation of either it, or if you're looking at a restaurant premises where no restaurant has operated for a while, then the reputation of the last one there. Past performance should be a good guide to the future.
I would say though that the real best thing to know before buying a restaurant is how to run one. Not how it works or how many staff you need or what sort of food, but what actually made a particular restaurant work. If this is your first time then make sure you've run a successful one before in some sort of managerial capacity before you even consider buying one, and investing your own money into it. The vast majority of new restaurants fail.

Answer 3

I own a country club which has a restaurant. Restaurants have the #1 failure rate of any business.

I don't think I would buy a free standing restaurant ever! Customers are fickle and occasionally drunk, employees steal the food, booze and cash and you work 80 hours a week whether you want to or not.

The best part of our food and beverage operation is the weddings and events. The events are paid for in advance and you know how many people are coming so that you can plan your staff and food accordingly.

If this restaurant doesn't have the capacity to do large functions, I would turn 180 degrees in the other direction...run fast!!!!

Answer 4

Firstly you need to know how to run one. If you've not managed one before then don't even risk your own money.

Secondly you need to know the local area. Look at competition and also the people in the area. If its' mainly retired people, then a traditional british place would work, in an area with trandy flats you'll want a trendy bar. If there's a good mix, do you want to cater to all, or a select few.

Next you need to look into your status. Are you going to buy a freehold restaurant. If you ask me that's the place to be, you get your pick of the suppliers and can do what you want. If you're going down the lease-hold (brewery owned) route then be careful, you're often tied into suppliers and have restrictions on what you can do. Also breweries tend to raise the rent hugely after a year or so.

You'll also need to look into it's current status, has it won awards, when was the last time an EHO visited and how did it fare, are the staff good, or is it all falling apart. It's not at all easy to turn a restaurant around unless you can take a hit financially for a few months.

Lastly you need to know if it's what you really want to do. Catering is a labour of love. If you don't love it, you'll never succeed!

Answer 5

The demographic. Ensure the restaurant has a good location -- and also consider the population surrounding it. Are there enough people to support it? Sit and watch the traffic flow in the area if it happens to be an area you're not familiar with. Consider the income of the local population and take note of which restaurants are prospering and which have failed. For example a restaurant that serves only ethnic food would not go over well in some areas. Remember in order for a restaurant to be successful you must cater to the people.

Answer 6

First off all it is a very demanding business so youll have to spend a lot of time there, second the location is very important, i would try a market analysis to see what kind of food people eat in the area you want to buy the restaurant, and also the price and how long would it take to recover your investment.

Answer 7

Understand the extreme competition which never lets up.
Very hard work and cash flow discipline.
Gets the loan or cash to get into the business.

Answer 8

Location, location, location

Answer 9

don't open up a chinese noodle restaurant if there is already two already on the same strip mall

Answer 10

The price?