Turnover, balance sheets, and financial results The financial history will tell you a lot about the viability and profitability of the restaurant you’re taking over. This step requires the help of your accountant, who will analyze all these figures in detail and draw more informed conclusions. For example, you might want to ask yourself whether turnover has been increasing each year or has it been decreasing. Normally, you should be able to access balance sheets for the past three years. These figures will also help you draw up usa student data your business plan.
Other number-related questions you should ask:
- What is the table turnover rate?
- How many covers are there per service?
- What are the peak hours?
- What is the price range of the dishes?
- What is the gross margin for each dish?
- What is the average ticket size?
- What are the salary costs, rent costs and utilities?
- And what about taxes?
Purchasing a business for your restaurant: how to analyze its profitability?
In addition to analyzing the restaurant’s The financial history balance sheets and financial results, which are tangible and concrete elements that give you an insight into the restaurant’s past profitability, there are other elements to establish the future profitability of your restaurant:
- Geographic location : Is the only relevant creatives will help you stay in the information field of your target audience business located in a commercial area, in the city center or in a peripheral area? Is the street busy? Is it accessible (parking, public transport, etc.).
- Commercial Lease : What is the monthly rent and lease term? Is it negotiable?
- Type of restaurant : Some commercial leases allow the use of the premises for certain types of restaurants only due to the layout of the restaurant (if you plan to open a fast food service, make sure the lease allows you to do so)
How to assess the acquisition price of a business?
Depending on the financial history of The financial history establishment and its past and future profitability, it is possible to estimate the acquisition price of the business, using 3 methods:
- Estimate based on turnover : the purchase price is estimated based on a percentage (also called a coefficient) of the business’s annual turnover. The percentage applied is generally around 80% of annual turnover.
- Estimate by comparison : the sale taiwan lists amount is based on a comparison with similar businesses (location of the premises, turnover, layout of the restaurant, etc.)
- Estimate based on the value of the lease : the valuation of the business then takes into account the surface area and location of the restaurant, as well as the value of the assets contained therein (equipment, brand, etc.)