How to Buy a Restaurant

Restaurants are on every street corner. Some are "mom and pops" while others are franchised and still others are independent corporations. Your personality will be the best way to choose the type of restaurant you want to start. Make sure you have the time to commit to your new business, as it will occupy much of your days and nights for the first several years.

Instructions

1. Decide what type restaurant you want to invest in--turn-key, franchise or independent.

2. Find the real reason the restaurant owners want to sell.

3. Check the accountant's books. Go back seven years in order to determine what kind of sales can be expected.

4. Ask questions about the restaurant's reputation. Also check out the area and find out if there is a lot of competition in the neighborhood.

5. Examine the premises of the restaurant. Look at all repair and remodeling bills.

6. Discuss the purchase with friends and family and always consult a financial adviser for objectivity about the possibility of your restaurant purchase.

7. Communicate your concerns of the purchase, bid on the price asked and if accepted make the commitment to buy.

Tips & Warnings

• Customer service is the key to a successful restaurant.

• Your time will be at the restaurant making sure it is growing and making a profit.

Resources

• Discusses the pros and cons of buying a restaurant.
• Online guide of restaurants up for sale.