Before you buy a restaurant, conduct a due diligence
Everybody needs to eat to live, and over time we have turned this requirement into a social activity. Currently, a restaurant is – by far, one of the most popular businesses, and one which could be an even more desirable buying proposition if you happen to have a taste for a specific kind of food!
Conduct due diligence when buying a restaurant business even though your heart, or even your stomach, might tell you that this is the vocation for you. This industry is very competitive and there are many elements you want to consider. Allocate a period of time, experts recommend four weeks, to observe the operation of the business. This should enable you to get a good feel and to smooth out any peaks or troughs before you make your final decision.
You have several key areas to investigate including the premises, the financials, the equipment, lease, the operations and the employees. Do not be afraid to bring in experts, including an accountant experienced in the food business to help you, but as you go through your observation period, use your general business sense and a good portion of common sense to observe how everything works, especially from a client point of view.
Reliable due diligence will most often determine the success of an investment, or business decision. However, within the restaurant space most firms do not deploy veteran restaurant operators who have spent much of their career identifying opportunities and deficiencies within foodservice companies. IRHC Group highly credentialed team enables the most comprehensive restaurant due diligence available. By analyzing financial data, interviewing key executives, reviewing unit level operations and brand position/customer research, IRHC Group is able to provide you with the critical insight to make confident and accurate investment decisions.
Contact IRHC Group for further information http://www.IRHCgroup.com