Profitable Restaurants for sale are defined as any business opportunities that generate positive cash flow. The opportunities we show below generate very high earnings of six figures or more for an owner operator after paying all expenses associated with the business. For those searching to find business opportunities, it's not unusual to focus on those with the greatest earnings. Profitable restaurants for sale like this collection of listings have the following points in common:
- Sales of $1.0 million or more
- Earnings of $100,000 or more
- Opportunity for new buyers to acquire
- Food Costs
- Labor Cost
- Occupancy Costs
Labor Cost are the costs in any profitable restaurants for sale reflecting both the hourly and salaried employees- the entire workforce. When reviewing profitable restaurants for sale, it's important to make sure that all the workers in the restaurant are being paid legally and all the hourly workers needed are reflected in the payroll. For the most part, you can count on labor costs being about 25% as a rate to total sales.
The last huge component of a profit and loss statement for any business and, profitable restaurants for sale like these, are the occupancy costs. Occupancy includes rent, CAMS (Common Area Maintenance Charges), Taxes and Insurance paid to the landlord. The entire amount is counted in occupancy. As restaurant brokers, those of us at We Sell Restaurants, like to see occupancy costs at no more than ten percent as a rate to total sales.
If you are the market to find profitable restaurants for sale, it's a good idea to become familiar with these common ratios and apply them to the business opportunities you review. This is an industry where high earnings can be found but doing your homework up front is a good way to be ready to sort out the best from the rest.
Want more information on buying profitable restaurants for sale? Visit us online at this link to see our restaurants for sale or at this link for articles and information on buying a restaurant.
- $799 billion: Restaurant industry sales. (Source: 2017 State of the Industry)
- 1 million+: Restaurant locations in the United States
- 14.7 million: Restaurant industry employees
- 1.6 million: New restaurant jobs created by the year 2027