Based on the busy activity we have experienced on both the selling and buying sides of our business it appears that 2008 will be another very busy year for Restaurant Realty Company. Unlike many other businesses that have been negatively impacted by the slow down of the economy during these challenging economic times there seems to be an abundance of both sellers and buyers for restaurant, bar and nightclub opportunities for the reasons indicated below.
- There are a number of people that have been unemployed and can’t find adequate jobs so they are considering going into business for themselves rather than working in jobs they really are not interested
- There are a large number of foreign buyers that realize that they can get a big bang for their buck by purchasing a business in this country due to the weak dollar abroad.
- There is the normal flow of buyers whose expertise is limited to working in restaurants, bars and nightclubs and feel this is the only industry they wish to pursue.
- There are more sellers coming into the market based on the changes in the economic climate. Some operators of higher price point operations are looking at selling due to customer’s reduced levels of discretionary income while others need to sell due to increased operating costs.
- There are a number of families that work together and a restaurant is a good business to work together due to the large number of positions required to run a restaurant.
- There are a number of sellers that are baby boomers that have been in these businesses for a number of years and are tired and/or burned out or are ready for retirement and are motivated to sell.
- There are the normal number of sellers that want out of their business as a result of the following: health reasons, divorce, relocation, and partnership disputes, etc.
- There are a number of sellers that are involved in owning and operating more than one business and they have determined that they can be more successful in focusing all of their activity in one business rather than spreading themselves too thin over several businesses.
The strongest demand from buyers are businesses that ave one or more of the following characteristics: a. strong cash flow, b. franchises, c. 5 day a week (Monday-Friday) breakfast and lunch operations, d. cocktail lounges without food, e. popular priced lunch and dinner operations with cocktail lounges, f. coffee houses, g. pizza operations, and h. deli and sandwich operations.
If you are thinking about selling your business please consider using Restaurant Realty Company as we have a very comprehensive marketing program which has resulted in a close rate that is almost three times the national average and sales of nearly 600 restaurant, bar and nightclub businesses since 1996.