Guidelines
to use before you buy a restaurant
Many people dream of owning a coffee shop,
pub, street café or restaurant. Knowing how to buy
a restaurant is the first step in making a success
of the business. Follow our guidelines when you buy a restaurant
and avoid common pitfalls.
Before you buy a restaurant tips:
Decide what type of clientele you want.
Do you want students, upmarket and older people, families,
youngsters, business executives, fun loving professionals,
sports lovers etc?
(View
private seller advertisements for restaurants for sale)
Decide on the type of menu you want to set.
If you prefer Italian food, a Chinese restaurant is probably
not a good idea. Even though many South Africans run successful
pizza shops, few succeed at Chinese restaurants, simply
because they lack understanding of the culture and credibility
amongst the community. Likewise a Pan African restaurant
will have more credibility with its clients if the owner
is African or at least the chef. You thus need to cater
to a market that will find you credible.
If your crowd is younger you can expect
more visits, but less money spent. If the crowd consists
of more discerning diners, you will have higher income per
head, but will not be able to seat as many people.
Location is all important when you buy a
restaurant. If the rent is too high, you will not be able
to make it during slow months. You need a spot with ample
parking space, security, and catering to the image of the
people living in the area or frequenting the shopping area.
The demographics must fit the clientele. You also don't
want to stay far from the premises as you will need to be
close to your business.
Conduct research in the specific area to
find out how many times a week the people dine out, how
much they spend and which restaurants they prefer. If you
purchase a restaurant at the seaside, you will need to keep
in mind that during the off peak seasons, you may have little
traffic. Budget accordingly.
Decide whether you want a unique business
or prefer a franchise.
Make sure the business has all the licenses
and enquire about the seating space, safety regulations,
health standards, gross and nett profits, as well as employees.
Keep an eye on this page for more information
on how to buy a restaurant in future.Also read the article
on how to evaluate
a restaurant.
Click here if you want to find restaurants for sale
or click here: if you want to advertise
your restaurant for sale.