It may be time to sell your restaurant?
The COVID pandemic has shuttered many a business, with restaurants being hit especially
hard. Some restaurants will be able to survive and others just won't. Some landlords
are willing and able to provide relief and others aren't. If your restaurant just can't sustain
itself for another 9 months of COVID or you’re just ready to move on, then you need to
start getting it ready to sell. If you just shut down and walk away, you will get nothing
for your brand, location, inventory, equipment, loyal customers, etc. So, don't shut down.
You have spent time, sweat and tears building a business that has value.
Don't let a short-term pandemic strip you of all that.
Here’s what to do:
Create a detailed inventory of all of your equipment, furniture and systems. A simple and free way to do this is to use the TableBoost app. TableBoost catalogs all of your equipment and systems including make, model, year, salvage value, warranty... This is critical for defining a $ value. Click here to start the process.
Identify all of your vendors (service providers, suppliers) with their contact info, service contracts, and the recurring preventative maintenance schedules. Note: This is all stored in TableBoost, so if #1 didn't convince you to set up a free TableBoost account, click here and do it now.
Organize all of your facilities related documents (e.g. Board of Health inspection reports, Fire & Safety inspections, Building Dept inspections). Note: This can all be stored in TableBoost, so if #1 and #2 didn't convince you to set up a free TableBoost account, click here and do it now.
Create a detailed inventory of everything else you have.
Put together a story about what is special about your business (e.g. the location, the community, the loyalty of customers, your menu, special events, what makes your business important to the community...)
Create a financial overview of 2017, 2018, 2019; forget about 2020 as it’s not relevant to what your business is worth after COVID.
Define a bunch of recommendations you have for the next owner. List things that you should have done that could increase revenue...
Calculate what they could achieve (total revenue) post-COVID.
Talk to a small business broker and find out what you should do to put your business in the best possible light to get the maximum value. Just Google "restaurant business broker" to find brokers near you. Here in the Northeast, we can recommend National Restaurant Exchange, Northeast Restaurant Group, and Corbett Restaurant Group. If you know of good brokers in other parts of the country, please share their name and website URL in the below Comments section of this blog.
Let your landlord know that you are considering selling your business and want to know if they will cooperate with a new owner (e.g. have them assume the rest of your lease or need to create a new lease, etc.)
While few owners want to sell their restaurant(s), it may be the most prudent option to
pursue. And being well prepared with TableBoost’s app, will help you get the most money
for your business.