Will Upgrading My Liquor License Increase The Sales Price When I Sell My Restaurant?

Comments & Replies: 1     Views: 6422     Posted By: Joe Ranieri  Joe Ranieri, Business Broker: LA, Orange Counties

My restaurant recently upgraded its beer with wine license to a full-service liquor license, and if I sell, how much can that increase my selling price? A Southern California restaurant broker specialist initiates this discussion and other advisors, business brokers, agents weigh in on this topic.

Topics: Business Valuation, Selling A Business     Tags: business valuation, liquor license, selling a business



My restaurant recently upgraded its beer with wine license to a full-service liquor license, and if I sell, how much can that increase my selling price?

This is a common question I get from restaurant owners who go from selling beer and wine on premises (#41) to being able to also sell full liquor (#47). Possibly the owner has been thinking about selling, but wanted to wait and see how much being able to sell hard alcohol and spirits have increased their monthly sales. Certain type of restaurants, such as Italian fine dining, may not see a huge demand for hard alcohol and spirits, as many people have beer and wine with their meals, so it does not increase profits that much, while other food types may, so it is a case by case basis.

A buyer will typically look at the last 2-3 years of sales, with an emphasis on the last year, so any new changes will be scrutinized, but a buyer will be looking for overall monthly sales numbers to determine a purchasing price.

A tip to a potential buyer: investigate what is the overall percentage of sales regarding beer/wine/spirits, and contact Alcoholic Beverage Control (ABC) to see if there are any restrictions on the license. With that said, selling a restaurant with a #47 in the advertisement listing may attract more eyeballs and lead to more buyers traffic, so it can have a benefit in getting a restaurant sold, but ultimately buyers will always look at the numbers and not "potential" in determining a price.

I would be curious how other contributors on this forum have dealt with sellers who have made upgrades to their business and wanted an increase in price based on the anticipation of future profits.


  Helpful Resources To Assist In Selling And Buying California Businesses
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.

Joe Ranieri, Business Broker: Orange, LA County Areas

Having owned retail/restaurant businesses for over 20 years, my interest turned to selling businesses rather than owning them. I specialize in LA & Orange County restaurants, fast food independents and chains, bars, & liquor stores. Call 714-292-5448 Cell/Text.

Rick Carlson, Business Broker - Southern California

You Will Never Feel Lost In The Shuffle. Many Brokers Simply Send Out An NDA And That's The End Of Communication. All Buyers Receive A Personal Meeting With An Ace Acquisition Specialist So They Can Recommend The Perfect Business For You. Phone Rick direct at 800-985-4939.

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.

William Park, Business Broker: Southern California

Highest Volume Broker in California, Simply Check our HUNDREDS of Listings! Over 25 Associates, Speaking Dozen Languages, Helping Buyers and Sellers of Small Business since 1982, Centrally Located between Los Angeles and Orange Counties, while Riverside & San Bernardino Counties are Very Accessible.

Jack Oh, Business Broker: Southern California

Business broker and real estate services in the Los Angeles and Orange County areas. 10 years experience with great negotiating skills. To sell a business or buy a business in the LA or Orange County Areas phone Jack and his team at 562-787-4989 Cell / Text.

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.

Mike Brewer: Liquor License Broker, ABC Consulting Service

Liquor license brokerage and consulting services. We provide: Alcohol License Transfers Application Consulting & Processing, Liquor License Purchases & Sales, City Zoning Permits & Land Use Entitlements, Public Convenience or Necessity Findings and Letters. Phone Mike Brewer direct at 800-437-1100.


  Related Articles, Events, Blog Posts, Discussions, Videos, Interviews
Restaurant Buyers: Five Tips On Buying A Second Restaurant Business Location

Start-up costs are typically so high to build a restaurant from scratch that many current owners prefer to look for an existing restaurant that isn't doing so well and customize it as their own - second location. Joe Ranieri gives tips to restaurant owners buying a second location to expand.

How Long Does It Take For A Small Business Restaurant To Sell In California?

This question is bound to come up from a seller to a business broker at one point in their relationship. The truth may discourage a seller who desperately needs to sell, because in all honestly, many times in can take months. All restaurants are different - Joe Ranieri, Business Broker explains.

Selling Buying Used Restaurant Equipment-Tips For Restaurant Buyers, Sellers

The restaurant business is a tough business to be in, no one can dispute that, and so it's imperative that an owner's equipment is in good working condition. A new owner should make sure that the restaurant's equipment is in good working order before they close escrow. Joe Ranieri gives his tips.

Upgrading Liquor License: An Increase In Price When I Sell My Restaurant?

My restaurant recently upgraded its beer with wine license to a full-service liquor license, and if I sell, how much can that increase my selling price? Joe Ranieri, Southern California restaurant broker specialist initiates this discussion and other advisors, business brokers, agents weigh in.

Buying A New Restaurant: 6 Items New Restaurant Business Owners Overspend On

Nothing can be more exciting, and a little daunting for a new owner than finally being handed over the keys to their newly owned restaurant. Many buyers, especially those who have never been business owners before are much too eager to make the restaurant "their own". Overspending can take place.

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!

Millennial Buyers: What Are They Seeking When Buying A Small Business?

First, we must define, who are the Millennials? The exact years are up for debate, but Millennials were born during approximately between 1981-1986, which today would be between 22 and 37 years of age. Joe Ranieri looks at what these buyers are looking for and what qualities they seek in businesses.

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.


Veld Group Business Brokerage Los Angeles County
Joe Ranieri Orange County Business Broker
Escrow Town And Country Southern California
Bill Ziprick Legal Advise
Facebook
Twitter
Linkedin
Vlogs and Podcasts
BizBen ProSell Program
California Educational Events Buying And Selling Businesses
BizBen ProBuy Program
Instant Email Alerts On BizBen
New Postings Reports On BizBen Sign Up


BizBen - Where California Deals Get Done! 888-212-4747
7172 Regional Street #364 · Dublin, CA. 94568
BizBen · Copyright © 1994 - 2020, All Rights Reserved



Clost Login


Please confirm your registration by clicking the link we've sent to .

If you can't see it, please check your junk mail folder.

If you have any problems registering, or need assistance with your new BizBen User Account please phone BizBen Customer Support at 888-212-4747.



First Name:*
Last Name:*
Email Address:*
Confirm Email:*
Create Password:*
Confirm Password:*
Phone:
(   
 


You Are A:
Individual
 
Intermediary
 

Email Address:
Password:
 

500 New & Refreshed Detailed Postings Daily
Over 2500 Resources Available On BizBen
Since 1994. Where California Deals Get Done!
Selling Buying Used Restaurant Equipment-Tips For Restaurant Buyers, Sel...
Read More News
Millennial Buyers: What Are They Seeking When Buying A Small Business?
Read More News