Why you should consider Operating Restaurants for Sale in Atlanta Georgia
by Doug Marranci – Atlanta Restaurant Exchange
Opening a restaurant in a new Retail Center or Location that is not currently a restaurant can bring to mind the movie with Tom Hanks; “The Money Pit”
There is a trend in Startups wherein the initial phase consumes most of the restaurateur’s resources. One must consider 30+ Thousand to add ADA compliant rest room facilities, and 15+ Thousand to install a compliant Grease Trap. The Alcohol compliance phase can take another 10+ Thousand to check zoning and produce architectural drawings of the building as well as a neighborhood survey to insure any setback and distance requirements are met (IE: Daycare, Schools, Churches and much more).
Just to get to the point of beginning to build your restaurant, you may have invested more than 60 Thousand dollars just for the approval to move forward.
Just like driving a new car off of the lot, the value of equipment drops when the equipment is put into place. I have seen reach in coolers that originally sold for 4500, selling on the internet for $200.00.
Many times the first owner puts 500,000 into a retail space to turn it into a restaurant. A new development usually takes more than 1 year to see good traffic. Most of these restaurant owners did not hold on to enough operating expenses to make it thru that critical first year. We currently have an opportunity where an owner spent 750,000 on this new restaurant. It can be yours today for less than 75,000.
When purchasing a Restaurant where the original owner has made the “Brand New Phase” investment, the second generation operator can come in and buy the build out and equipment for a reasonable price, and make a good living while not having the overhead that the original owner was under. This is common knowledge; however so many people go into new locations every day and don’t realize how long it takes to build up a business. Their loss is a second generation restaurant owner’s gain.
In many of the operating restaurants for sale, the current owners are overwhelmed with the daily operations and the initial undercapitalization and find themselves lacking the stamina to withstand the physical and financial demands of continuing to build the business. It takes time for those in the area to get accustomed to the new business being there, and psychological studies show it takes 90 days for a person to begin to change their habits.
Purchasing a restaurant for sale that is currently operating will give you a lower initial cost than the original owner and it is often the new buyer that makes the business a success. Buyers are able to find a great benefit in the losses of the original owner. In many cases, the original owners just want to cut their losses and move on with their lives.
Business analysts report that it takes almost two years for a new restaurant space to reach its optimal sales potential. You can come in in that second year, and be there to reap the benefits!
See our website for more information.
1708 Peachtree St NW
Atlanta Georgia 30309