AboutRick Dudasik Expertise I can answer questions relating to most areas of the restaurant industry including: starting a restaurant, design, food costing and pricing, site selection, staffing, training, equipment, profit and loss questions, sales training, recipies and many other areas of the industry. I have been in the industry for thirty years and have experience in fast food management, multi unit management, casual dinning management,and ownership. Have helped open over fifteen units throughout the United States.
Question We are in the beginning stages of buying a coffee house that also serves sandwiches and soups. We are not particularly interested in the coffee aspect of the business however and want to concentrate the business on the food aspect. We also want to change the name of the business. The seller is asking $75,000 for the business which for us will basically be the equipment (that is in good shape) and furniture (which is not in the best shape) because the building is leased. They are estimating the value of the FF&E at $25,000. The business currently is not profitable, (Gross sales = $230,000, food costs $96,000, expenses $130,000, net profit $3,000) it was 2 years ago but has dried up to basically nothing. We have a lot of confidence in the location however. Should we push to have the price reduced or does it seem fair?
Answer Dear Janet,
$75000 for a restaurant that is not making money........hmmmmmmm
And you don't want to use their name..........
and there is no real estate.........
So if the equipment is worth 100,000 then it might be a good deal if you really can use that equippment.....
I would start negotiating........I see no deal here.......
Open your own place the way you want it for a lot less..
