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What You Should Know Before Buying A Restaurant

Check out these three things to know before buying a restaurant.

Check out these three things to know before buying a restaurant.

Buying a restaurant is a significant investment, and has the potential to be more complicated than opening a new one. However, there are many advantages to buying a restaurant, as the business will already have an established clientele, trained employees, and, hopefully, a good reputation. Continue reading for three important things to know before you purchase an established restaurant.

What Is The Need For Selling

The most crucial question to ask when buying a business is why the owner is selling their company. A business owner will always have a reason for selling- it may simply be because they are getting ready to retire or are starting a new venture, but it could also be because the restaurant isn’t doing so great. However, the owner will likely try to hide this information, so they know it will negatively impact the sale of their business, so it’s important to conduct your own research and due diligence. Consider if there is stiff competition nearby, the neighborhood is changing/many companies in the area are closing, or if the restaurant’s reputation has suffered in recent years.


Once you know the answers to these questions and can confirm that purchasing the restaurant is a good investment, you must then find out about the condition of the assets. Assessing the restaurant’s cash flow is crucial before purchasing it, and you should also review their financial statements to calculate the business’s total income. It’s also important to conduct a thorough assessment of the restaurant’s equipment, and other assets including business licenses, insurance policies, vendor and contractor contracts, and the restaurant’s intellectual property assets.


A successful ownership transition is dependent on the employees, as the staff will often make or break a business. It’s crucial to evaluate the current staff to know how they function on a daily basis, as well as employee training procedures, staff schedules, and payroll. Restaurants are likely to have the occasional employee issues, and it’s best to know about any problems upfront before they become your responsibility.  

Buying With Atlantic Business Brokerage, Inc.

At Atlantic Business Brokerage, our mission is quite simple; we help sellers sell businesses, and buyers buy businesses! Over the past 30 years, ABBI has facilitated the sale of countless commercial properties, businesses, and franchised locations. With our unparalleled knowledge of the business purchase and sale industry and our network of contacts, we offer services to both buyers and sellers that no other brokerage firm can match.

Contact us to discuss your business buying and selling goals today at 410-561-9800, or Toll-Free at 800-279-7569. Email us at [email protected], and follow us online on Facebook and LinkedIn.

This entry was posted on Thursday, February 28th, 2019 at . Both comments and pings are currently closed.