BUYING A RESTAURANT, CAFÉ, CATERING COMPANY OR HOSPITALITY BUSINESS
“Plan to sell your business before you start!”

Why is it important to plan to sell your business before you start?
Many people enter the hospitality industry hoping to own their own business and earn the money that employers have deprived them. They want to be their own boss and seek to fulfil their aspirations within their chosen industry, and this is why we are here. We want to help people make their businesses work.

Let us sit back and reflect on the past few decades of the hospitality industry. In retrospect, the industry has evolved to one of the most pertinent fields of business. There is an assortment of hospitality businesses nowadays such as café’s, restaurants, catering companies and the list goes on. However, it is nothing new to see one business doing better than another. The reasons are aspects such as location, quality of the product, marketing, equipment, etc, and most people are aware of this and keep this in mind when they wish to purchase a business. However, there is one aspect that many people do not necessarily take into consideration, thus often neglect. This is ‘structure’.

Structure is the key to bringing together a successful model. Imagine your business where you were not tied down to the technical roles. Imagine that you have everyone buzzing around you, doing what is needed to be done. Now think what it would be like to have a person taking care of all the technicians, a person who ‘manages’ everything for you. That would leave you with the role of entrepreneur, the most important role within a business, the role that would enable you to improve on every facet of the business that you will be able to replicate and sell with ease.

Many people are interested in creating or expanding their own business. They usually have been in the industry for several years and realise its time to become their own boss, and be exposed to the potential dollars that bosses get… If that is the case for you, then there are several questions you need to ask yourself. How do I buy right? Who has the best business for sale? What do I really want my business to achieve? How must I run the business to ensure its success?

It is a given that successful businesses are built on successful models. This can be reflected in key aspects that people look for when they buy. Many business owners wishing to expand, or people purchasing their first business tend to appreciate is One such idea born from this manifestation is franchising. Franchising has changed the face of the hospitality industry ever since Ray Kroc discovered the potential of McDonalds. It is the idea of creating a structured environment, where any individual can fit into a role within an organisation. The process is structured around pre-determined goals and objectives, planning to achieve goals, site specifications and a great team to realise the plan.
When you buy a Restaurant are you buying a business or a space with plant and equipment and somewhat dubious goodwill? What is a business and will this proposed operation realise the expectations when the previous owner receives their cheque and leaves forever? Due diligence is required to ensure you are getting what you are paying for, 30% of businesses change hands every year.
What is your fundamental business concept?

You have an idea, will it work? And have you researched the market? What is involved in bringing the concept into reality? Should you buy an existing business or start from scratch? The following will assist with broadening your knowledge of the buying process and what information to collate in this process to make an informed decision.

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