Existing restaurants often come up for sale. If you'd prefer buying a turn-key operation (i.e. a business that is already viable and running and has customers), then purchasing a restaurant might be the way to go. Every business up for sale must be carefully scrutinized before you sign on the dotted line.
Find Out the Real Story
Why is the restaurant really up for sale? Did the owner die or did customers stopped coming?
Check the Books -- All the Books
Is the restaurant making money? Carefully examine recent sales and expenses and see if the restauarant is in the black. Have YOUR accountant look at the books and see if anything looks suspicious. Are payments going somewhere they shouldn't be? How much money is in the restaurant's bank account?
Has the Reputation Slipped?
What's the Current Reputation of the Restaurant? Ask the vendors if the owner has been paying his bills on time. Find out if the place's reputation has slipped.
Examine the Assets
Look at each asset that is listed for the business. Is the stove 10 years old? Is the rest of the equipment outdated? Is the location up to code? Is the name valueable, or does it attract mostly older customers who have moved away?
