Good Management Beats A Good Location When Buying Or Selling A Restaurant

Share This Info:

Good Management Beats A Good Location When Buying A Restaurant

Good Location Important When Buying Or Selling A Restaurant

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.

About The Author: Jeff Back is the founder of J. Back & Associates Restaurant Real Estate. - specializing exclusively in buying, selling and developing restaurants, bars and nightclubs. View more information about Jeff Back at J. Back & Associates & his listings or phone him direct at 925-736-8200 about selling or buying a restaurant in Northern California.

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

Comments Regarding This Blog Post

Contributor: Joe Ranieri, Business Broker: LA, Orange County Areas

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

Rob Hartman: Business Broker, SF Bay Area

Business brokerage services in the SF Bay Area. I bring skill, integrity and energy to all of my clients and our projects. I'm accustomed to working with a wide variety of clients and their businesses; large or small, simple or highly complex. Get a free consultation by phoning 650-279-3097.

Taj Randhawa, Business Broker Specialist - Gas Stations, Liquor Stores

If you are interested buying or selling a gas station, liquor store feel free to phone me for a consultation. My vast experience & specialization in gas stations & liquor stores helps me in serving my clients with full confidence, trust & sincerity. Serving Central Valley, SF Bay Area. 559-259-4247.

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.

Prabhjot Randhawa, Broker: SF Bay Area, Central Valley

I'm a Business Advisor at Liberty Business Advisors of San Francisco. I have over 20 years of experience in all phases of entrepreneurship. During the past 15 years my concentration has been in business of mergers and consulting. I have owned and operated over 10 businesses. 209-815-3842 Cell.

Timothy Cunha JD, Business Broker: SF Bay Area

Experienced attorney, & business broker. I & my EvergreenGold team offer owners sound advice & expertise to build business value & achieve profitable sales. Call me today for a FREE business evaluation & SWOT analysis for your business. Call 650-600-3751 or 650-866-5393 Text.

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.

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

Founder & President Of BizBen.com (since 1994) & BizBenNetwork.com. I am the Lead Facilitator for the ProSell & ProBuy Programs on both websites. I consult daily with buyers, sellers, and intermediaries daily about buying and selling businesses. Call 925-785-3118.

Manjit Singh, Business Broker - SF Bay Area, Central Valley

Assistance in the SF Bay Area & Valley. Contact me about buying or selling a restaurant, liquor store, gas stations, markets, and c-store businesses. If you are looking to buy or sell a SF Bay Area, Central Valley liquor store, market, c-store, restaurant, etc phone me direct at 510-417-9429 Cell.

Related Articles, Events, Blog Posts, Discussions, Videos, Interviews

Liquor License Assistance Consultant - San Francisco Bay Area - Jim Saxton

Jim Saxton - 20 years experience of local governmental requirements, such as Police Departments, Zoning / Planning Departments, 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. 925-787-0770.

Buying A Restaurant With Financing: 5 Options For Restaurant Business Buyers

In this Discussion, Peter Siegel MBA (Business Purchase Financing Advisor at 925-785-3118) discusses financing of purchasing a small to mid-sized restaurant business (with or without real estate). When it comes to financing a restaurant, potential restaurant buyers have many options to choose from.

Specialty Restaurant Broker Discusses Liquor Licenses & Working With The ABC

What you will read in this BizBen blog post you will probably not find in any manual or set of instructions provided by the ABC (liquor licenses in California). This blog post by Jeff Back (SF Bay Area Restaurant Broker Specialist) at 925-736-8200 discusses this topic of liquor licenses in detail.

FREE Webinar: Buying Or Selling San Francisco Restaurants - Best Practices

This informative 40 minute interview/webinar about buying & selling restaurants in San Francisco with restaurant broker specialist Cheryl Maloney is a real eye opener for restaurant buyers and sellers. Cheryl gives great advice to both buyers and sellers from her years of experience in the industry.

Tips From A Restaurant Broker - Check A Restaurant For Karma Before You Buy

Jeff Back (925-736-8200), a SF Bay Area broker specialist who specializes in selling restaurants discusses what he looks for when sizing up a potential restaurant for sale. Do the restaurants you're thinking of purchasing have good Karma? See Jeff's insights into this topic on restaurant karma.

Why Restaurant Buyers Typically Fail: Best Pro Tips For Buying A Restaurant

Buying a restaurant (no matter what type) can have many pitfalls, and potential restaurant buyers should know how to avoid getting burned! Several restaurant intermediaries and advisors weigh in on this BizBen Discussion about the best way to find, purchase and run a restaurant successfully!

Buying A Restaurant Can Be Challenging: 3 Key Tips For Restaurant Buyers

People always need to eat; there should be plenty of business. Some restaurant buyers think there is prestige to owning a popular eating establishment. But it isn't an easy business purchase. Peter Siegel, MBA (BizBen Founder, ProBuy & ProSell Program Director at 925-785-3118) reviews this topic.

Is Starting With A Higher Selling Price A Good Strategy? The Pros Debate

Is it a good idea to start with a higher sales price for your business when going to market? San Francisco Bay Area Business Broker Rob Hartman initiates this Discussion on BizBen with other Advisors And Intermediaries on BizBen discussing this basic strategy of selling a small business in CA.