Recently Crowne Atlantic Business Brokers sold an Italian Restaurant in the Central Florida area. The transaction was a great situation for both Buyer and Seller. The Seller felt that they simply were not succesful with the restaurant business and felt that they needed to move on. The buying party had experience in the restaurant industry and already owned another restaurant in town and was looking to expand.
At Crowne Atlantic Business Brokers, selling restaurants is a huge specialty for us. We even have a niche within the restaurant industry where we help sellers sell restaurants that are underperforming, struggling, or in some cases recently shut down. Why would someone purchase a poorly performing restaurant you ask? The answer is simple. There is a segment of buyers that are looking to purchase struggling and underperforming restaurants. These buyers in many case are experienced and in most cases are looking for a good deal.
Some of the benefits of purchasing an underperforming restaurant include:
1) A huge price reduction for the Buyer. Buying a profitable restaurant typically means that the price paid is more than the net profit of the business per year. When a restaurant makes little or no money, sometimes the price is based more on the equipment and asset value. Essentially it is the best way to acquire a cheap restaurant for sale in the Orlando area.
2) Cheaper buildout costs for the Buyer.
A Buyer that moves into an existing restaurant can save on permitting costs, impact fees, and rent when taking over an existing restaurant as opposed to building one out from scratch.
3) Time Savings for the Buyer.
There is a huge savings on time when a Buyer purchases an existing restaurant. If they plan to change the concept they have a huge head start when it comes to potential buildout costs that they can potentially avoid.
4) A Current Concept is Already in Place
In many cases, Buyers purchase a restaurant because they do like the current concept. They feel that the Seller may not be operating the restaurant correctly or they simply feel that they will work the restaurant different and add or subtract items and do a better job than the current owner. This also helps Buyers that have extensive restaurant management experience but are not as skilled at coming up with potential restaurant concepts and menus.
Whether you are looking to Buy or Sell a restaurant, contact Crowne Atlantic Business Brokers on our website at www.crowneatlantic.com or call us at 407-478-4101.