Are you looking for the best way to take over a restaurant ?
Participating in the takeover of a business of which you are not the original founder can be a great challenge. You have the opportunity to invest in a business that is already operating. However, to take over a restaurant, you need to spend time looking at things like its catchment area, its clientele and its turnover. Check the restaurant’s financesIt’s impossible to think about taking over a restaurant without spending some time looking at its financial condition. Indeed, it is essential that you verify that the restaurant is profitable. This is what will guarantee that you won’t take over an abandoned business on the verge of sinking!Concentrate on :Turnover: the seller is obliged to give you the turnover of the last three financial years, which generally corresponds to the turnover of the last three years. These are the cash receipts made by the restaurant over the year. Be careful not to confuse turnover and margin! If the restaurant’s charges are too high, you may not earn as much as you expected.The annual accounts: in order to be able to interpret this information without missing important information, it is advisable to call upon the services of a chartered accountant.Points to watch out for: what do changes in turnover mean?Turnover gives a direct idea of the health of a business. Nevertheless, it can go up or down. A decrease in turnover can be due to a drop in visitors but also to a change in opening hours. A rising figure is not always positive and may be due to the arrival of an exceptional event for example.Location, an essential factor in the takeover of a restaurantWe can’t repeat it enough but a good restaurant is a restaurant that attracts people spontaneously… And therefore it must have a good location! You will have much more opportunity to reach customers if you are located in the city centre or in a busy shopping street rather than in a dark alleyway that is a bit out of the way.Although the location of a restaurant seems to be an obvious and stable fact, you are never safe from an unpleasant surprise. Take the time to learn about the following points when taking over a restaurant:Will there be any work planned on the street?Are there commercial premises that have been empty for several months?Will some convenience stores be closing?Will other competitors open in the coming months?The administrative steps not to be missed to successfully take over a restaurantWhen taking over a restaurant, you will be confronted with a few mandatory administrative steps. Take the time to carefully observe the following points:The current commercial lease: is a possible rent revision possible? Is the restaurant already equipped? (cold room, hotplates etc…)Restaurant licenses: you will need to know which licenses were held by the restaurant vendor. Some of them are mandatory, such as for selling alcohol, for example.It is your duty to make sure that the restaurant’s equipment complies with current standards and legislation. To take over a restaurant, you will need to do some training to get a business licence and make a declaration to your town hall.Taking care of staff when taking over a restaurantAlthough you are taking over a restaurant and are now the new manager, customers may not notice the change right away. Regular customers are often very accustomed to the staff. Good relationships and effective management of the staff help to make the transition smoother.Focus particularly on :The restaurant chef: Is he used to talking to customers a lot? Does he have specialities in the kitchen? A transition period can be considered where two chefs are in the same restaurant for several weeks to help with the handover.The key personnel of the restaurant: which employees are responsible in the dining room and in the kitchen? Are employment contracts taken over with the business?