The Market for Buying Restaurants

There is a strong buyer pool as a result of the following:

  1. the high unemployment rate due to corporate layoffs and downsizing;
  2. the large number of foreigners that want to get into this business because this an easier entry business opportunity compared to more complex businesses;
  3. buyers want to put their whole family to work in the business;
  4. people want to be their own boss;
  5. buyers want to express their creativity and
  6. some talented chefs are being financed by investors who like their food

Most all of our transactions are all cash transactions and the serious buyers seem to have plenty of cash as a result of credit lines from their homes, money they have pulled out of the stock market, retirement money for those baby boomers that were asked to take early retirement, savings and other sources.

There are a high percentage of buyers that are looking for businesses that generate cash flow so if you own a business that falls in this category there is a big demand for this type of business assuming the business is reasonably priced.  There are a number of buyers that are looking for businesses with real estate as they want to build equity rather than pay rent and some of these buyers are coming out of 1031 tax deferred exchanges from selling other pieces of real estate.    There are a number of buyers that have their own concept and are looking for a well located restaurant with a good lease that they can change with a modest cosmetic remodel.


Written by Steven Zimmerman - Restaurant Realty Company

Disclaimer: The information in our articles has been provided by Restaurant Realty Company in collaboration with Restaurants For Sale Online. Restaurant Realty Company and Restaurants For Sale Online assumes no responsibility for decisions made by buyers, sellers or other parties to any transaction. Information has been provided based on experience and research. The results of various articles and studies reflect such information. Restaurant Realty Company and Restaurants For Sale Online assumes no responsibility for pricing or recommendation of pricing to any of our users. If you are interested in buying a business, Restaurants For Sale Online, LLC recommends you do your own due diligence to verify the source of any information provided to you by a seller and/or intermediary. If you are interested in selling your business, Restaurants For Sale Online recommends you contact an intermediary that specializes in transactions similar to the respective business.