Buying a Restaurant
The romance of buying a restaurant can wear off quickly if you do not surround yourself with experienced consultants and advisors.
"Build it and they will come" is not a plan for profitability - strategic thinking and sound financial management are the fundamentals of running a successful business. If you are considering buying a restaurant, you need to first develop strategic financial goals.
With a dedicated Hospitality and Catering practice, Sothertons Chartered Accountants is the ideal partner for both existing venue owners and new industry entrants. With over 30 years' experience in the hospitality industry, Sothertons accountants understand the specific requirements of potential and current restaurant owners.
For more information on how Sothertons can assist when buying a restaurant, call (03) 9820 6400 or submit an online contact form.
Buying a Restaurant: Build a Business Model
The first questions to consider when buying a restaurant are not related to furnishings, location or cuisine; they relate to the long term viability of the restaurant and what kind of return can be expected from your investment. Key questions to ask include:
- What is the minimum rate of return required to make this a worthwhile investment?
- Do financial documents from previous years show a history of profitability? If not, why not?
- What is the maximum price you are willing or able to pay
- What additional investment is required?
These questions are key in developing the business model, but the answers to these questions can be complex and difficult to determine.
Drawing upon extensive industry experience, Sothertons accountants can provide assistance in evaluating existing data and providing information in a readable, informative and useful format. As an experienced provider of hospitality business valuation services, Sothertons can ensure that your decisions are based on sound, independent, accurate data.
Sothertons: Sustainable Strategy
Ongoing and increased profitability requires accurate, appropriate accounting reports and continuous evaluation. This is complicated by the cyclical nature of sales in the hospitality industry, which requires a unique approach to accounting.
Sothertons can review the operating costs of each division within your business as well as important direct and indirect expenses. This allows you to more effectively evaluate the performance of all divisions and identify areas for improvement and growth.
Having a Sothertons accountant partner with you in managing day-to-day operations, including cash flow, labour costs, tax and BAS statements, allows you to run your business strategically and with confidence.
To learn how Sothertons can provide advice and assistance on running and buying a restaurant, call (03) 9820 6400 or submit a contact form.
