DILIGENCE WORKSHEET

Potential buyers should exercise due diligence in purchasing a restaurant, and our firm is committed to assisting buyers with this important step. Some areas to consider in due diligence are:

Financial Records

• Sales volume for the past three years
  
• Financials for the past three years
  
• Employee base
  
• Employee wages / benefits
  
• Employee contracts

Marketing

• Signature menu offerings
  
• Workable marketing plan
  
• Planned new products / menu offerings

Advertising and Promotion

• Advertising arenas
  
• Current marketing effectiveness
  
• Signage

Customers

• Target markets
  
• Demographic profile

Pricing

• Food / beverage cost percentages
  
• Menu pricing strategy
  
• Price increase possibilities 

Physical Facilities

• Square footage
  
• Parking spaces
  
• Outside dining
  
• Expansion possibilities
  
• Available utilities

Equipment /Operations

• Condition of furniture, fixtures, and equipment
  
• Maintenance / cleaning contracts
  
• Code compliance
  
• Hood system / grease trap / hot water heater

Legal

• Existing contracts
  
• Up-to-date inspections
  
• Lease review
  
• Alcohol license
  
• Zoning requirements

This abbreviated list of due diligence items highlights the complexity of buying a restaurant. Our firm can help you with the thorough investigation necessary to ensure that you make a wise buying decision.