The end of an era?
Maybe you’re ready to move on to the next chapter of your life. Maybe you want to cash out. Whatever the reason you’re considering selling your restaurant, you should take the time to evaluate your finances and to consider your options. Talk to your loved ones, and ask them for their advice. This isn’t an easy decision.
If you do decide to sell, the restaurant brokers at National Restaurant Properties can help, taking the hassle out of the process. Our website streamlines the process of buying and selling restaurants.
Here is a (non-exhaustive) list of reasons people decide to sell their restaurant. Perhaps this will help you decide whether to sell your restaurant business.
Reasons to Sell Your Restaurant
1. Money for Your Next Startup
You’re not just an entrepreneur. You’re a serial entrepreneur. You’ve started one restaurant, but now you’re ready to move on to your next project.
This article from Bizben gives common reasons owners sell. Among them is retirement. You’ve run your restaurant for years, but now you’re ready to pass the torch and move on to the next stage of your life.
3. Because Your Business is Strong
There’s a misconception that people only sell their restaurants when they’re failing, but our favorite listings are ones with good cash flow, great locations, unique concepts, and leases in place. Selling at your peak is better than selling out of distress.
You didn’t start your restaurant business. You inherited it from a loved one who passed away. Unfortunately, you lack the skills or desire to run it, and you’re ready to pass the baton to someone else with the passion and drive to keep the restaurant going.
5. A Better Offer
Maybe you’ve found another source of income more lucrative than your restaurant. Maybe you’ve been offered a job you think you’d enjoy more.
6. You Need the Money for Something
Maybe you have some pressing concern (hospital bills, mortgage payments) and you need an influx of cash.
7. Family and Time Pressure
A study from Cornell University talked with owners of restaurants and found that, “…most of the failed restaurateurs attributed their failure partly to family demands (e.g., divorce, ill health, retirement). Family sacrifice was mentioned by both successful and failed owners, but the successful owners were either good at balancing their family and work lives or they were not married. On the other hand, five of the failed owners said that they closed when they were no longer willing to make those family sacrifices.” Selling your restaurant to spend more time with your family is noble.
8. Market Factors
As the researchers in the above study said, “External environments can change rapidly and companies may not be able to change accordingly… Many restaurants fail each year from an inability to understand, adapt to, or anticipate market trends, especially given that some market trends are more difficult to foresee than others.” Maybe a recent market trend has made your restaurant unprofitable.
9. You Don’t Enjoy It
You got into the restaurant business seeing it as an adventure, but maybe it didn’t live up to your expectations. It’s not for everyone.
If you’re going through a divorce, you may not be able to run your restaurant, especially if your spouse was heavily involved.
Your restaurant just isn’t making money. Maybe it was at first, but an economic downturn changed things.
Owning a restaurant is a hard job involving long hours and frequently rude customers. This article from Thrillist gives the experience of some restaurant owners. One owner commented, “If you are not prepared to never see your family, never have a holiday, never play golf, then you are not prepared to be in the restaurant business.” Another commented, “It never ends. It’s the Super Bowl every day. It keeps coming, day in or day out.” Owning a restaurant is exhausting, and it’s easy to burn out.
13. And Other Reasons
The article also lists illness, lack of capital, partnership disputes, burnout and boredom, and a failing business as reasons to sell. And no doubt, there are many others.
Selling your restaurant is a tough decision, but it doesn’t have to be a tough process. At National Restaurant Properties, we do the heavy lifting. We’ll help you analyze your finances to set a price. Our process is confidential. Let us be your partner in selling your restaurant.