Crowne Atlantic Business Brokers recently sold yet another restaurant in the Orlando area as an asset sale. An asset sale is a nickname used by business brokers, sellers, and sometimes buyers to reflect a purchase for a restaurant for a reason other than cash flow. In these transactions the Buyer purchases the restaurant not because of its revenue, but for many other reasons including location, buildout, equipment, or all three.
Why would anyone buy a restaurant that’s not doing well you ask? Its very simple to understand why once a person has gone through or attempted to go through the process of building out a restaurant from scratch. You see the state of Florida has something called impact fees. These are taxes that are levied on businesses that start up and build out in spaces, especially retail spaces. Restaurant entrepreneurs could find themselves spending sometimes hundreds of thousands of dollars on not only impact fees, but additional add-ons required by updated city and county codes including larger bathrooms, more parking, larger grease traps, additional doorways, more fire sprinklers and the list goes on and on. Before you know it you’ve committed to spending $150,000 that you did not intend on spending.
What does a restaurant entrepreneur get when they purchase an asset sale restaurant for sale? They get a whole package of convenience!! At Crowne Atlantic Business Brokers we can find you a fully built restaurant for fraction of what it would cost to build out a new one from scratch. These restaurants are many times fully decked out with the equipment completely installed. This equipment typically includes hood systems, POS systems, camera systems, ovens, seating, dishes, walk-in coolers, grease traps, ADA complying bathrooms and much more. As a bonus, many of these restaurants are still open and have an existing client base and a sales base for the next owner to build off of.
The biggest objection we get from buyers when we sell these restaurants is their incorrect belief that the location is bad. While occasionally this can be true, we find that in most cases there is something wrong with the concept, the operation, or in some instances the owners simply do not have the time to operate the restaurants the way they need to be run. In this particular scenario, we had a seller who simply no longer had the patience for the restaurant business. They had an incredible looking restaurant and their product was terrific, but at the end of the day they had been in the industry for many years and simply did not want to work the hours that the business would require to become successful. We sold it to a company that already owned several restaurants in the Orlando area and they were looking for a third location to expand their concept. We got them this location for a very inexpensive price, one that they would have trouble duplicating elsewhere. It was a great deal for all parties involved!
If you are looking for a restaurant to start up and you are looking to conserve funds, give us a call at 407-478-4101. At the same time, if you or someone you know owns a restaurant that is not doing well and you are looking to get out with some money in your pocket, don’t shut it down and allow the landlord to seize your equipment and deposit. Call us and let us help 407-478-4101. We can sell your restaurant in the Orlando and Central Florida area.