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About Larry Edger
Expertise
Multi concept restaurant owner. Just finished fourth restaurant. Can answer questions on all aspects of running, owning and starting a restaurant, cafe or hospitality operation. Enjoy helping other restaurant owners. Most "consultants" have no idea what a restaurant operator needs to be successful. Let me know if I can assist you finding answers to your operating and marketing questions. Accomplished chef and menu development a particular talent for upscale casual restaurants.

Experience
Owner and operator of several multi-concept restaurants. Successful entrepreneur, started businesses from scratch on many occasions. Know the problems with planning and running a restaurant. Always independent operations and not the product of chain restaurants.

Publications
As an author of The Restaurant Ebook, A Guide to Keeping Your Dream Off the Chopping Block, I have helped hundreds of restaurateurs to market and run a better restaurant.For more information visit http://www.therestaurantebook.com or http://www.onawait.com

Education/Credentials
Attended Ohio State University and have gone through many extended classes relating to marketing and management. Written many courses and training manuals.
Currently building fourth restaurant and created a blog to keep track of daily activities. Readers can see the various steps from leasing to opening. Visit http://www.startingarestaurantblog.com

You are here: Experts > Business > Small Business: UK > Running a Restaurant > Buying an existing restaurant

Running a Restaurant - Buying an existing restaurant

Expert: Larry Edger - 10/23/2009

Question
Dear Larry,
I am looking into buying an existing restaurant. I have never owned one, but food and service are my passion. I have an MBA plus some years cooking and restaurant management experience. The restaurant I'm looking into buying is one of several family restaurants that were started 40 some years ago. This restaurant is like the neighborhood pizza and pasta restaurant. The brand name is well positioned in the local area. As a mystery shopper I got a a good first impression.
Besides doing all the recommended research and inspections, I am thinking of keeping the best seller dishes on their current menu, PLUS adding traditional Spanish tapas dishes. One requirement by owner is that I cannot keep the current restaurant's name (is identified with Italian food).
What do you think about the combination of Italian and Spanish cuisines? I respect and value your opinion.
Truly,
Vera

Answer
Vera;

Buying an existing restaurant is always risky. Be cautious and make sure your due diligence is complete and you have a good business attorney draft the agreement.

With regard to your specific question, changing your menu and trying to merge a hearty cuisine like Italian and pizza with a lighter tapas menu may require a whole new customer base. It's like trying to sell tofu and soy milk at McDonalds - the customers for the food groups are different. Notwithstanding what I just stated, you may be able to pull the fusion off IF you know the demographics extremely well.

The second concern I would have is changing the name and the menu at the same time is a dramatic move from your customer's perspective. If the restaurant is popular and prosperous, be careful with too many changes that may drive customers to try your competitors. Pizza has a very loyal following.

If you change the entire concept, what is the advantage of buying an existing restaurant and paying a premium? Unless the price is very low, I might look at the cost of just starting a new venture compared to the extra you may be paying for the current business.

Bottom line is that it could work, but you must know your guests, potential customers and location in great detail. Plan your marketing carefully as you go.

Good luck with your concept. Let me know if I can help again.

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