How To Sell a Restaurant Quickly in 2024

If you’ve been asking yourself, “How Do I Sell My Restaurant?” you’re in luck. Today, I will share a few tips that will show you how to sell a restaurant quickly and easily, whether you are a franchise owner or an independent restaurateur. 

How Do I Sell My Restaurant?

How Do I Sell My Restaurant? There are many ways how to sell a restaurant. You can use a restaurant broker. You can advertise your restaurant in the newspaper or a website listing on BizBuySell or Craigslist. You can put a for sale sign in your window.  Also, don’t underestimate the power of word-of-mouth advertising. It works!  

How Much Should I Sell My Restaurant For?

Before you even think of selling your restaurant business, you need to come up with a valuation that a buyer in the marketplace would be willing to pay. While a good broker could help you set a fair purchase amount, you could also do an analysis yourself.

If you own a franchise you might want to contact your franchiser for financial advice and guidance.     

Cash Flow Multiple Valuation

One approach to value a business in the restaurant industry is a cash flow multiple of 3.5 to 4.5. So, for example, if the earnings from the restaurant business are $200K a year, they would be valued anywhere from $ 700 K to $900K. 

Gross Sales Valuation

Another way to value a restaurant business is to use a percentage of gross sales. Typically, this falls in the 25 – 40% range. So if a restaurant does  $1 million in annual sales, it would be worth $250k – $400K

Selling a Restaurant – Tips

Preparing to Sell Your Restaurant – Take These Steps

1 – Make The Decision to Sell

When planning to sell your restaurant business, you need to consider some things.  It’s a big financial decision that may affect you for years. 

What will do next?

Are you considering retirement … or just taking a break for a while? Have you considered turning your concept into a franchise so you don’t always have to be there?

Will you get bored and want to come back?

Can you imagine life without your restaurant?   There’s a lot to think about.   

2 – Get Your Books and Paperwork In Order 

Potential buyers first want to see that your books and paperwork are organized and ready to go. This will show that you are serious about the sale and help you to get the best price.

You’ll need to ensure you have the restaurant’s lease handy and any other contracts you have signed.

You’ll also need to ensure you have a copy of the restaurant’s business license. Have your accountant and lawyer check over all the paperwork.

They’ll make sure everything is in order and that there are no hidden surprises.

3 – Tell Your Employees 

Make sure your employees are aware of the sale. They must know that the restaurant will be closing. But not too soon, or they may bail on you. It’s an important balancing act. 

You need to be fair to them so they can look for new jobs. They have a financial stake in this transaction as well.

4 – Do a Walk Through and Take Inventory 

Take a complete walk-through of your restaurant. This includes the kitchen, dining room, restrooms, and everything else.

List all assets, including equipment, inventory, fixtures, and furniture. All of this may affect the price you get for your restaurant business. 

5 – Maximize Your Curb Appeal

First impressions are very important, so make sure your restaurant looks appealing. 

Pretend that an inspector from the health department is coming. Keep trash out of sight and make sure everything is clean and orderly.

Fix any broken windows or lighting fixtures and ensure the bathrooms are spotless.

How to Sell a Restaurant Using a Broker 

A restaurant broker is a professional who is licensed by the state in which he or she does business to represent buyers and sellers of restaurants and related businesses.

The broker will be very knowledgeable about the restaurant market and can help you find a qualified buyer who will be willing to pay a fair amount for your restaurant and help you prepare for the sale to ensure a clean and orderly experience at closing.

Selling a restaurant  can be a complicated process. There are many things to consider, including taxes, the restaurant’s location, the number of seats, your lease, and the condition of your equipment.

The restaurant broker can help with preparation and advise you to help the transaction go smoothly. 

We have some Restaurant brokers listed on our Restaurant Resources page

How To Sell a Restaurant Without a Broker 

The benefit of selling your restaurant without using a broker is saving money. They will charge a fee for their services, typically 10%, from the sales price.  You won’t have to pay that fee if you decide to sell your restaurant yourself. 

However, there are a few things you should know before you try to sell your restaurant without a broker. The first thing you should know is that it’s not as easy as you might think.

There are many things to consider when selling a restaurant. You will need to be prepared for a lot of work and planning.

Offer Owner Financing for a Faster Sale 

Owner financing is a great way to sell your restaurant quickly.  It gives the buyer a way to buy your restaurant without a loan.  In addition, it allows the buyer to purchase the restaurant with only a small down payment, which may be essential for some potential buyers.

If you have a franchise, make sure this is allowed.

Sell Your Restaurant Using Craigslist

If you are thinking about selling your restaurant, put a listing on Craigslist.org. It’s a great place to start.  It’s free to list your restaurant on the site and you can reach a large number of potential buyers.

I have used Craigslist to sell business opportunities, Restaurant POS systems, used restaurant equipment, and many other things for years. 

Sell Your Restaurant Using BizBuySell

BizBuySell is a business-to-business marketplace where buyers and sellers can meet in a safe and secure environment to buy or sell their businesses. BizBuySell offers an easy-to-use platform to connect with potential buyers and sellers and a robust network of professionals who can help guide you through selling your restaurant.

Sell your Restaurant Using Newspaper Ads

There are several benefits to selling your business using newspaper ads, including the fact that it is relatively inexpensive. You can reach a large audience and sell your business quickly.  A newspaper is a trusted source, and people are used to seeing ads in the paper.  

How to Sell a Restaurant with a For Sale Sign 

Putting a for sale sign in the window is a great way to generate interest and find a potential buyer for your restaurant business. Many years ago, I had trouble selling my house.

After a month, we had a lot of showings but no offers. I put a for sale sign in my window, and within a week, the house sold to a person in the neighborhood. Lesson Learned!   

Sell your Restaurant Business By Word Of Mouth

There are several benefits to selling your Restaurant by word of mouth, including the fact that the process is very simple and straightforward. You don’t have to spend a lot of money to get started.

And you can sell your restaurant business to anyone interested, including friends, family members, or strangers.

Back to Top of How to Sell a Restaurant WIthout a Broker

Conclusion

If you follow the tips in this article, you can ensure a quick and painless sale. Remember preparation is key. Good luck, and enjoy your retirement or whatever else you do.

Jack Bastide is a Restaurant Consultant with a focus on Restaurant Point of Sale technology. Check out the world-famous Restaurant Super Star Restaurant Resources page for a comprehensive offering of hand-picked commercial resources and tools to help your restaurant.