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

Comments & Replies: 1     Views: 6123     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
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.

Michael Davidson, Business Broker - Southern California

Los Angeles Business Broker providing M&A quality services for Small Business Owners. We leverage our technology and expertise to Simplify & Expedite the Business Sales Process. Matching the right buyer with the right business is how we define success.

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.

Chris Seaman, Business Broker: Southern California

Founded in 1994, First Choice Business Brokers has accelerated to become one of the most successful Business Sales Organizations in the world. Our team of agents have gone through extensive training to become experts in the field of business brokerage. Call Chris at 858-578-4111 for more info.

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.

Ryan Clark, Business Broker: Southern California

The Veld Group provides a refreshing approach to Business Brokerage, Mergers & Acquisitions and Business Consulting and Valuations. From Your Street to Wall Street, we cater to Main Street Businesses as well as more complex Strategic Firms and Start-Ups. Phone Ryan, Business Broker at 310-652-8353.

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.

Randall Barondess CBB, Business Brokerage Services - Central Coast

Experts at: Preparing Businesses For Sale, No-Cost Valuations and Lease Modifications. MaxOne Business, a REMAX ONE Company prepares small, mid-sized and large businesses for sale by confidentially packaging the business and providing guidance throughout the sales process.


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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.


Joe Ranieri Orange County Business Broker
Veld Group Business Brokerage Los Angeles County
Michael Brewer, ABC License Consultant
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