National Brokers Network

Things to Consider if You Are Opening or Buying a Restaurant

Before opening a restaurant — or any business for that matter — needs proper planning. The industry is tricky especially for new business owners, and even veterans. Experience and in-depth knowledge can be gained, but it’s also essential to do research beforehand to have a plan regarding the following things to consider when opening or buying a restaurant:


Build From Scratch or Franchise One?

There are two choices in starting a business — either you start your own or get a franchise. Starting a business from scratch is literally from scratch. Definitely, there is freedom and creativity in your own terms, but the stakes of failure are high. On the other hand, a franchise is a proven system, meaning it’s already an established business with an existing customer base and products. In a franchise business, there are rules to follow, providing no freedom to the business owner. Even though the fees are high, there is a high success rate for franchises.

For restaurant businesses, establishing your own gives creative freedom on the creation of the menu, supporting the R&D process, and the owner has the liberty to choose employees. In contrast, franchises have a fixed menu and staff is provided by the mother company. Choosing whether starting your own or franchising a business is a tough choice, and the decision will dictate in which direction you will go afterwards.


Identify Your Identity

The identity is who the business is; it’s showing a character on which customers will see when they encounter the business. In restaurants, determining the price point is essential in establishing an identity amidst the restaurant landscape of discount offers and cheapskate customers. Businesses come and go. That’s why as a restaurant owner, you should be able to establish a long-lasting imprint on a customers’ mind in a positive way.


Where you will be found

It’s time to find the perfect place for the restaurant. This can be in your neighbourhood or outside the country. What is important is having a business plan prepared in order to know if everything is in sync. In terms of location, as long as research and feasibility study is conducted, there is no credible data to rely on id the restaurant will have some form of impact on the chosen neighbourhood or not.


Learn new skills

At the start, Restaurateurs, and other businesses as well, will likely learn new skills. The start is tough since there are only a few people who will work for you from the start. During this phase, becoming a jack of all trades is definitely a huge help. Restaurateurs should take the opportunity to learn, whether relevant or irrelevant at the moment.

As a restaurateur, there are different factors to consider. You have to know where the restaurant will be located, while establishing a brand identity and learning new skills to manage the business better. Opening a restaurant can be done in two ways, either buying a franchise or starting your own.

However, when both options are not applicable, future business owners can sort to buying an existing business altogether. Restaurateurs can purchase an existing business in Melbourne or other places in Victoria with listings from business brokers victoria. Existing businesses will need time for adjustment, but is more flexible compared to purchasing a franchise. The bottom line is the final answer is how the restaurateur will want the business be seen by its eaters.

Confidentiality Agreement

In Consideration of the Vendor of the subject business, or any other business introduced to the Proposed Purchaser and their agent National Brokers Network (“the agent”) providing information to the Prospective Purchaser, the Prospective Purchaser agrees:

1. To keep all information provided confidential in respect to the subject business and any other business introduced to the Prospective Purchaser by the Agent.
2. That no information is to be disclosed by the Prospective Purchaser to any third party without consent by the Agent;
3. That it will not use for themselves. Or for others benefit, such information other than to Purchase the subject business or other business introduced by the Agent;
4. That any agreement to purchase the whole or portion of the business shall be exclusively through the Agent;
5. To immediately return to the Agent all such information and other details in written form including any drawings and any copies made of written information, notes, summaries or extracts of any document therefor if any when requested by the Agent;
6. Under no circumstances will the Prospective Purchaser make direct contact with the vendor of the subject business or other introduced business without the prior written consent of the Agent;
7. If the Prospective Purchaser breaches this agreement or buys the business direct from the Vendor, the Prospective purchaser is liable to and indemnifies the Agent for any and all losses the agent may incur including economic loss and loss of income.v

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