When a prospective buyer is considering the purchase of a restaurant or other food service business, this list is a compilation of most of the questions that may be asked and will impact the offer that is made to buy it. The list is in no specific order of importance.
- Will the owner offer financing?
- Will the owner provide training?
- Will the owner sign a non-compete agreement and for how many miles?
- Is the lease assignable, is there a renewal option, any restrictions?
- Are the trade name, Web site, recipes and training manuals included in the deal?
- How many hours a week does the owner work?
- What is the real reason for the sale?
- How long since menu / price change?
- Are the most recent health inspection reports available?
- Is the equipment owned or leased?
- Is the equipment in good and working condition?
- Will the chef / cook stay?
- Where is the labor pool?
- Who are key suppliers?
- What is the demographic base?
- Are there any governmental issues, including city and health departments?
- Has the owner experimented with different hours (breakfast, lunch, dinner, weekend brunch, late night entertainment)?
- Any liquor license violations or restrictions?
- Is there any current competition or any coming to the area soon?
- Is verifiable financial information available?
- Blend of sales food/liquor?
- Is there any cash payroll?
- Is the POS computer connected to the corporate headquarters or franchise?
- How long has the seller owned the business?
- What are the operating hours? Buyers want to determine if there may be room for increasing sales based on changing the hours.
- Work histories of staff?
- Suggestions for growth or expansion?
- Are the federal, state and payroll taxes current and does the family have non essential employees on the payroll?
- Are sales taxes and gratuities being included in the sales? Some accountants will permit the operator to do that, then remove them as an expense.
- Do you have a gift-card program?
- How much of your income is in cash?
- What type of marketing has and has not worked?
- What part of the business needs the most improvement?