If you’d like to open a restaurant, you may have considered the different options. While you can certainly open your own restaurant, what about buying an existing restaurant? Is it possible to be more successful with one or the other? It depends on a number of factors. Let’s take a closer look at whether or not you should open a new restaurant or buy an existing one.
What Type of Restaurant Is It?
When purchasing an existing restaurant, you may be buying a chain restaurant or a local business. This can have a great impact on how successful the restaurant will be. For example, when you purchase a franchise of a well-known restaurant, you don’t have to worry as much about establishing yourself in the community. On the other hand, if you’re buying an existing restaurant you may have customers that worry about how the restaurant will change. Or, the restaurant may have been doing poorly and you’ll need to work hard to show how new management has changed the restaurant.
What Will You Be Buying?
When buying an existing restaurant, you may choose to purchase just the building, equipment, and furnishings. Or, you can choose purchase the entire business including the menu, recipes, logo, and everything the business owner has already established. If the business is successful, this can be a great opportunity, but it will come at a price.
What Kind of Reputation Did the Restaurant Have?
Reputation is everything when it comes to buying an existing restaurant. However, even a bad restaurant can be turned around. When buying an existing restaurant that didn’t have the best reputation. Make sure to place signs on the outdoor signage stating that the restaurant is under new management. You may even want to do a press release with the local paper on how you’ve purchased the restaurant and have turned it around.
Is New the Way to Go?
There are a number of benefits to starting your own restaurant. First of all, the investment may not be as large. Yes, you will need to buy equipment and furnishings, but you have a chance to start small and grow as your business does. Another benefit is the ability to bring something new to a community. The same restaurants can get boring after a while so it’s nice for people to have something new. You also have the freedom of creativity. When you start with a fresh slate, you’re not influenced by what a restaurant used to be.
There are benefits to both options. It really depends on what you’re looking for though. If you’re hoping for quick success, buying an existing restaurant may make sense. However, if you have less money to invest and want to bring something new and unique to your community, starting a new restaurant is the way to go.
About the Author: Ela Corado and her business partner are opening a small cafe in a brand new location. They’re implementing the Amburapp pos for ipad for their servers and have created a simple menu designed to welcome and warm their patrons.
Should I Open A New Restaurant Or Buy An Existing One?
