to 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 to avoid common pitfalls
in the purchasing process.
Before you Buy
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?
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 one at the seaside, you will need to keep in mind
that during the off peak seasons, you may have little traffic.
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.
Author: Isebell Gauche