Good Management Beats A Good Location When Buying Or Selling A Restaurant | BizBen Blog

Good Management Beats A Good Location When Buying A Restaurant

Buying Or Selling A Restaurant Locations

People who know me know my opinion about what it takes to be successful in the restaurant business- and it's not just a good location. What makes a difference time and time again is the difference in management. Good management is the key to success. Every time you hear its Location Location Location, I say it's Execution Execution Execution!

Look over my list of "done deals" over the past 23 years and you will notice that many are no longer in business.

Some have been sold as many as four times. But eventually, with good management, the same location that was once a loser has been turned into a winner by good management.

Nowhere is this truer than with the Charley Brown's chain. These restaurants flourished for many years but are now all gone in the Bay area. There are many reasons for their demise, but location is not one of them. Their locations were always terrific and are still terrific even though Charley Brown's is no longer in business in the San Francisco Bay area.

The best location is the right location. You have to take into account the characteristics of the concept and match them up to the characteristics of the location. Different concepts have different location needs and different affordability.

When I'm trying to help someone find a site, buy a restaurant for sale, or sell their restaurant, I try to use all of my experience in the restaurant business so that the right decisions are made. The same location can be absolutely perfect for one concept and absolutely wrong for another concept.

I have had many of my clients for 10 to 15 years or more. These long term relationships mean a lot to me and I am rewarded with a good deal of inside information that I can use to help them and others make the right real estate decisions.

The restaurant business is difficult to say the least. But it is an exciting business, and an ever changing business. And, it can be a very profitable business.

Categories: BizBen Blog Contributor, Buying A Business, How To Buy A Business

Contributor:

Jeff Back, Broker: Restaurant Specialist - SF Bay Area

Areas Served: SF Bay Area, North Bay, Central Valley

Phone: 925-736-8200 Cell, 925-736-8200 Text

J. Back & Associates Restaurant Real Estate was founded in 1988 as the first SF Bay Area firm to specialize exclusively in restaurants. I am the past President of Charley Browns restaurants & have been involved in the restaurant business for over 35 years. Call 925-736-8200.

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Comments Regarding This Blog Post

Contributor: Joe Ranieri, Business Broker: LA, Orange Counties

I think it's also true that an owner/operator must also have a love of people or at least good customer service skills. I have had clients where I have steered them away from certain businesses, because I knew it would not be a good match.

I had a client who was interested in a dance clothing store near the coast, but later changed her mind and wanted a bar/dance hall about an hour and thirty minutes inland. I told the client that I felt it would not be a good match for her, even though I probably could have sold it to her, and made a higher commission, but it breaks my heart to have to relist something six months after a client buys something (at a 40-50K loss, because of insufficient books).

Bars, liquor stores, restaurants, and coffee shops really demand that the owner really enjoy being there and connect with the customers, because the temperament of the owner sets the mood for all other management and employees underneath.

Helpful Resources To Assist In Selling And Buying California Businesses

Jim Saxton, Liquor License Broker & Consultant - SF Bay Area

20 years experience of local governmental requirements, such as Police Departments, Zoning / Planning Departments, and ABC District Offices, my company Liquor Licenses of SF Bay Area is very qualified to resolve all of your concerns during the liquor license transfer process. Call 925-787-0770.

Mike Nova, Business Broker: North Bay Restaurant, Retail Specialist

I have over 30 years of direct restaurant industry experience, including my personal experience as a restaurant owner. For the last 7 years I have worked as a Broker specializing in this challenging and ever changing field of restaurant and bar sales. Contact me at 510-708-6682 Cell.

Peter Siegel MBA, BizBen Founder, ProBuy, ProSell, ProIntermediary Programs

Founder Of BizBen.com (since 1994). I am the Lead Advisor for the ProSell, ProBuy, & ProIntermediary Programs. I consult daily with buyers, sellers, and brokers daily about buying and selling California small to mid-sized businesses. Call 925-785-3118.

Harry Sidhu, CBB, Broker: SF Bay Area, Central Valley, SAC Region

Assisting both sellers and buyers of businesses - dealing mainly with Liquor Stores, Grocery Markets, Gas Stations, Smoke Shops, Restaurant Related, Retail Related, Service Related. Serving SF Bay Area, North Bay, Sacramento area. Call Harry Sidhu, CBB for assistance at 510-366-6130.

Steve Zimmerman: Restaurant Broker Specialist, California

Steve founded Restaurant Realty in 1996. He has personally sold/leased over 1000 restaurants, bars & clubs, & completed over 3000 valuations. The author of "Restaurant Dealmaker- An Insider's Trade Secrets For Buying a Restaurant, Bar or Club" available on Amazon. Reach Steve direct at 415-945-9701.

Timothy Cunha JD, Business Broker: SF Bay Area

SF Bay Area experienced attorney, & business broker. I & my EvergreenGold team offer owners sound advice & expertise to build business value & achieve profitable sales. For a FREE business evaluation & SWOT analysis for your business call me direct at 650-600-3751, 650-866-5393 Text.

AJ Rana - Business Broker, San Francisco Bay Area

Professionals who understand the importance of world class business brokerage service and the value it can create. Specializing in assisting sellers and buyers with retail stores, restaurants, hospitality & lodging, manufacturing operations, distribution companies, e-commerce and service businesses.

Peter Siegel, MBA: Business Purchase Financing Solutions

Niche business purchase financing advisory and loan placement services with SBA and Non-SBA Financing, Retirement Fund Rollover Solutions, Combo Financing Packages. To get professionally pre-qualified or more information on the ProBuy/ProSell Programs: 925-785-3118.

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