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Food Business for Sale

Food Business for Sale

Are you looking for a food business for sale? If so, you're in luck! This is the ultimate guide to buying a food business. Here, we will discuss everything you need to know before making your purchase. We'll cover the different types of food businesses for sale, the process of buying one, and what to look for when inspecting a food business. So, whether you're a first-time buyer or an experienced investor, this guide has everything you need to make an informed decision about purchasing a food business.
 
There are a few different types of food businesses for sale. The most common type is a restaurant business. Other food businesses include catering businesses, ghost kitchens, food trucks, and food carts. When considering which type of food business to buy, it's important to think about your budget, the location of the business, and the type of food you are most familiar with and interested in serving. What is important to remember is this. The traditional business model of the restaurant industry has changed. There are more opportunities than ever to be part of the industry with a different take on concepts like these food business for sale ventures.
 
The customer's appetite for takeout and delivery has led to several different food business for sale opportunities that differ from the traditional restaurant. Here are just a few examples that are currently trending across the United States because of the change in dining brought about by the pandemic of 2020.
 

Ghost Kitchen Food Business for Sale - Pros and Cons

 What is a Ghost Kitchen Food Business for Sale? A ghost kitchen is a concept that is for food prep and cooking only for delivery to customers. There is no actual restaurant associated with the concept. These are also known as other names like a delivery-only restaurant, virtual kitchen, shadow kitchen, or commissary kitchen. With the advent of third-party delivery concepts like DoorDash, UberEats, and more, a Ghost kitchen food business for sale like the ones offered by We Sell Restaurants have grown tremendously in adoption by the consumer and the number of concepts operating. Traditional restaurants are also increasing food sales through delivery, a phenomenon that grew exponentially during the pandemic.
 
There are both pros and cons to operating a ghost kitchen. Some of the benefits or pros include lower rent levels since you don't need a strong retail location. This could include lower start-up costs overall since there is no dine-in seating or need for an expensive build-out. For more information on the ghost kitchen concept, read this article titled, “The Ultimate Guide to Ghost Kitchen Franchises.”
 
The cons can include higher costs to deliver and building a reputation since you have no traditional "brick and mortar" location. 

Food Truck and Food Carts for Sale - Pros and Cons

 Another non-traditional food business for sale opportunity are food trucks and food carts. The difference between the two is simply the engine. A food truck can be driven from location to location while a food cart is typically on a trailer and is hitched to a truck. These concepts are simple and offer the convenience to open and close at the buyer's choice. They are typically used for events like county fairs and festivals so you are not operating 52 weeks a year. Many owners choose to operate only at the most profiable events and venues. 

The fixed cost for food trucks and food carts is lower than other restaurant concepts since you typically only have rental on a limited number of days when you are operating rather than a monthly rental expense year round.

The pros of operating a food truck or food cart is the low overhead cost, flexibility of operations and ability to operate anywhere you can attract a crowd. The cons are the limitations imposed by the model itself which is typically constrained by size and the number of orders that can be processed in a limited window of opportunity.. 
 
If you are interested in joining the industry, a food business for sale is a fantastic opportunity. There is a lower barrier to entry this highly competitive space since you are operating virtual restaurants, not actual restaurants.

Finding a Food Business for Sale - Process for Buying

The process of buying a food business for sale is not as complicated as you might think. The first step is to find a food business that meets your criteria. Visit a national website like the We Sell Restaurants website which will list hundreds of food businesses for sale. These are all represented by a Certified Restaurant Broker and full details including the size, lease, earnings, revenue, equipment list and historical performance are available to you as a qualified buyer. You may also visit online marketplaces like BizBuySell.com or Businessbroker.net. These are aggregator websites which have listings that could be for sale by owner or listed by a general business broker. Once you've found a few businesses that interest you, inquire with the restaurant broker (if We Sell Restaurants) or the general broker or owner if you found the business online.
 
You should anticipate that the seller will want to maintain confidentiality about the sale of his business. For that reason, expect that you will need to sign a confidentiality agreement, also called a non-disclosure agreement and in many cases, ask you to provide proof of funds to show that you qualify for the transaction. Many individuals question why a confidentiality agreement is needed, this article, “Why a Confidentiality Agreement is Needed to Buy a Restaurant” answers those questions in great detail.
 
Once this is in place, it's on to the next step which is to visit the food business for sale as a customer without asking any questions of the owner or staff. Experience the location the same way a customer views it to see if it aligns with your expectations. Order food and observe the operations for a brief period (approximately the time of a meal service). It is not a clever idea to stay at the business for an extended period of time (more than 45 minutes or so) as it becomes apparent to the staff that something is afoot.
 
If you like what you see and want to spend plenty of time at the business, contact the restaurant broker and schedule an appointment to view the business. During this meeting, be sure to ask the seller questions about the business, such as its financial history, the condition of the equipment, and the lease agreement. After you've inspected the food business and have decided that it is a good fit for you, the next step is to make an offer. If the seller accepts your offer, then congratulations! You are now the proud owner of a new business.
 
Once an offer is placed on the food business for sale, you enter a due diligence period. This is when you bring in an inspector to review the equipment, go through the underlying financial documents in detail, get your financing in order and work on an assignment of the lease, an important concept we'll cover next.

Food Business for Sale Lease Terms - Getting it right

Most food business for sale opportunities are leased locations so spending time on the lease is important. There are a number of items you will want to review on the lease including:
 
Lease term: This is the number of years on the initial lease term and expiration date
 
Number of option years:  These are options to extend the lease for an additional period (typically 5 years). It is important to note that these are typically the tenant's option to renew which means a lease stated as Expires 5/22 with two 5-year options is valid until 2032.
 
Rent escalations: This is the term for the amount the lease increases per year. The initial lease term and options should have an agreed upon rate of increase (as in, 3% per annum) or a flat amount built into the options by year.
 
Base rent:  This is the amount of the lease payment every year and month but does not include the full rental amount due. In addition to the base rent, landlords charge CAMS or common area maintenance charges to each tenant on a pro rata basis.  if you occupy ten percent of the total build, you pay ten percent of the common area maintenance which could include things like snow removal, trash pickup, common water bill or landscaping. They also charge the tenants a prorated portion for the taxes and insurance for the entire building.
 
Assignment and subletting:  These are the lease sections determining whether the lease can be transferred or sublet to a new business owner. In food service, landlords typically assign the remaining term of the lease and any option years. 
 
Now that you understand some of the key terms in a food business for sale lease, you can finalize due diligence and move to the closing table. At that point, the attorney in the transaction prepares a bill of sale that transfer title of the assets from the seller to the buyer. He or she will also do a lien search to be sure the assets you are acquiring don't have prior claims on them from any other parties. If anything is owed, the lienholder is paid at closing before the seller receives funds.
 
Buying a food business can be a wonderful way to jumpstart your career in the culinary industry. If you're interested in purchasing a food business, contact We Sell Restaurants today. Our team of experts will help you find the perfect business for sale and guide you through the buying process. With over 25 years of experience, we know everything there is to know about buying and selling food businesses. So don't hesitate any longer – contact us today to get started!

Food Business for Sale

Pros and Cons of Food Trucks

If you're thinking about buying a food truck, it's important to understand the pros and cons. Read this article today and decide if it's right for you!

Earning 300k - Incredible Opportunity: Mexican Restaurant for Sale

Earning 300k - Incredible Opportunity: Mexican Restaurant for Sale

Listing Id:10333 Lease Term:February 2025 +.. Monthly Rent$5000, Sq.ft.6000,
Independent Pizza Restaurant for Sale in Dane County $250K in Sales

Independent Pizza Restaurant for Sale in Dane County $250K in Sales

Listing Id:10322 Lease Term:November 2025 Monthly Rent$1458.33, Sq.ft.1250,
2-Unit Package Restaurant Franchise For Sale w/ $1.9+ Million in Sales

2-Unit Package Restaurant Franchise For Sale w/ $1.9+ Million in Sales

Listing Id:10313 Lease Term:Expires 2031 | .. Monthly Rent$6014,7248, Sq.ft.1700,1601,

The Reality of Food Trucks

What is the reality of operating a food truck business? We Sell Restaurants give you the score on this video featuring food trucks - a food business for sale alternative to traditional restaurants.

Crumbl Cookie Franchise for Sale in the Cleveland Ohio Market!

Crumbl Cookie Franchise for Sale in the Cleveland Ohio Market!

Listing Id:10306 Lease Term:Valid through 0.. Monthly Rent$5938.30, Sq.ft.2162,

Ultimate Guide to Ghost Kitchens

Ghost kitchens, also known as dark kitchens, cloud kitchens and virtual kitchens are the latest trend in the food industry thanks to changing consumer needs brought on by the pandemic.

4-Unit Package Restaurant Franchise For Sale W/ over $3.5 Million in Sales

4-Unit Package Restaurant Franchise For Sale W/ over $3.5 Million in Sales

Listing Id:10303 Lease Term:Expires 2027 | .. Monthly Rent$3906,6477,6014,.. Sq.ft.1200,1500,1700,..
Cafe for Sale in Jacksonville's Historic District with Liquor License

Cafe for Sale in Jacksonville's Historic District with Liquor License

Listing Id:10298 Lease Term:expires Oct 202.. Monthly Rent$4200- Sq.ft.1416-
Firehouse Subs for Sale in Broward County– Great Location and Build-Out

Firehouse Subs for Sale in Broward County– Great Location and Build-Out

Listing Id:10288 Lease Term:Expires August .. Monthly Rent$6575.69, Sq.ft.1796,

How to Become a Restaurant Buyer and Create Your Success

What characterizes the restaurant buyer? Is it extensive food service experience? Management training? Surely, acquiring a business degree is a must (or not- keep reading!)

Profitable Ghost Kitchen For Sale In Sarasota Gross Income 15k a Month

Profitable Ghost Kitchen For Sale In Sarasota Gross Income 15k a Month

Listing Id:10251 Lease Term:June 2025 Monthly Rent$1360,1360, Sq.ft.1000,1000,
2nd gen Bakery for Sale - perfect for coffee shop, bakery or deli.

2nd gen Bakery for Sale - perfect for coffee shop, bakery or deli.

Listing Id:10208 Lease Term:expires Decembe.. Monthly Rent$4800, Sq.ft.1200,
Mexican Restaurant For Sale in Denver makes $250,000 a year!!

Mexican Restaurant For Sale in Denver makes $250,000 a year!!

Listing Id:10187 Lease Term:6/30/2023 Monthly Rent$12180, Sq.ft.5000,
Renovated Cafe  for Sale - Limited Hours - New Equipment

Renovated Cafe for Sale - Limited Hours - New Equipment

Listing Id:10126 Lease Term:expires August .. Monthly Rent$1600, Sq.ft.3000,
Package of 3 Remodeled Subway Franchises for Sale Nearly $1.3 Million Sales

Package of 3 Remodeled Subway Franchises for Sale Nearly $1.3 Million Sales

Listing Id:10125 Lease Term:6/30/2025 Monthly Rent$2170,1984,1694, Sq.ft.1275,1500,1300,
Restaurant & Catering Business for Sale- Miami's Premier College Food Hall

Restaurant & Catering Business for Sale- Miami's Premier College Food Hall

Listing Id:10114 Lease Term:Year to Year Re.. Monthly Rent$25 Net, Sq.ft.750,
Catering Business for Sale With Amazing Location in Coral Gables!

Catering Business for Sale With Amazing Location in Coral Gables!

Listing Id:10107 Lease Term:Expire April 20.. Monthly Rent$4251, Sq.ft.1162,
Turnkey Remodeled Cafe for Sale with Transferable Beer/Wine License!

Turnkey Remodeled Cafe for Sale with Transferable Beer/Wine License!

Listing Id:10093 Lease Term:Expires April 2.. Monthly Rent$3746.82, Sq.ft.1191,
Turn Key Ready Market and Deli Cafe for Sale in Prime Location!

Turn Key Ready Market and Deli Cafe for Sale in Prime Location!

Listing Id:10092 Lease Term:60 months expir.. Monthly Rent$6885, Sq.ft.1784,
Pizza and Italian Restaurant for Sale. Turnkey. Keep or Convert.

Pizza and Italian Restaurant for Sale. Turnkey. Keep or Convert.

Listing Id:10061 Lease Term:Expires 4/30/20.. Monthly Rent$3250, Sq.ft.2500,
Fully Equipped Turnkey Restaurant for Sale in Roswell, GA.

Fully Equipped Turnkey Restaurant for Sale in Roswell, GA.

Listing Id:10060 Lease Term:Expires 12/15/2.. Monthly Rent$3700, Sq.ft.1250,
Two Store Package of Subway Franchises for Sale In Eau Claire only $135K

Two Store Package of Subway Franchises for Sale In Eau Claire only $135K

Listing Id:10033 Lease Term:Store 1 (20 plu.. Monthly Rent$2200,2206.70, Sq.ft.1564,900,
Price drop! 2nd Gen pizza on West side of San Antonio. Any concept!

Price drop! 2nd Gen pizza on West side of San Antonio. Any concept!

Listing Id:9959 Lease Term:through January.. Monthly Rent$5987, Sq.ft.1750,
Earn $70,000 Operating this Jefferson Co. Independent Pizza Shop!

Earn $70,000 Operating this Jefferson Co. Independent Pizza Shop!

Listing Id:9946 Lease Term:expires Decembe.. Monthly Rent$1200, Sq.ft.2000,
Turn Key Subway Franchise for sale, Rock Bottom price WON'T LAST

Turn Key Subway Franchise for sale, Rock Bottom price WON'T LAST

Listing Id:9934 Lease Term:expires October.. Monthly Rent$1200, Sq.ft.1500,
Updated Franchise for Sale in SW Wisconsin, Owner Financing Available

Updated Franchise for Sale in SW Wisconsin, Owner Financing Available

Listing Id:9904 Lease Term:Expires Feb 28 .. Monthly Rent$2277, Sq.ft.1006,
Amazing Venezuelan Restaurant for Sale on 8th St!! 90k in Owner Benefit!

Amazing Venezuelan Restaurant for Sale on 8th St!! 90k in Owner Benefit!

Listing Id:9903 Lease Term:Expires August .. Monthly Rent$2,784, Sq.ft.700,
Restaurant for Sale - Outstanding Fort Collins Location!

Restaurant for Sale - Outstanding Fort Collins Location!

Listing Id:9884 Lease Term:September 30 20.. Monthly Rent$4389.55, Sq.ft.2010,
Edible Arrangements Franchise for Sale will Net Owner/Operator $100K

Edible Arrangements Franchise for Sale will Net Owner/Operator $100K

Listing Id:9881 Lease Term:Expires July 30.. Monthly Rent$4265, Sq.ft.1200,
Asian Restaurant for Sale in Tampa with over $770,000 in sales!

Asian Restaurant for Sale in Tampa with over $770,000 in sales!

Listing Id:9837 Lease Term:Expires in 2027 Monthly Rent$Yes, Sq.ft.1630,
Gourmet Cafe Inside Food Hall in Major College! Sports Catering Potential!!

Gourmet Cafe Inside Food Hall in Major College! Sports Catering Potential!!

Listing Id:9802 Lease Term:Year to Year Re.. Monthly Rent$25 Net, Sq.ft.750,
Subway Franchise for Sale averaging $9,275 weekly YTD sales!

Subway Franchise for Sale averaging $9,275 weekly YTD sales!

Listing Id:9799 Lease Term:Expires May 31,.. Monthly Rent$3532, Sq.ft.1200,
Practically Brand New Pizza Franchise for Sale in Tampa FL!

Practically Brand New Pizza Franchise for Sale in Tampa FL!

Listing Id:9795 Lease Term:, 10 yrs Monthly Rent$3700, Sq.ft.1200,
Breakfast and Lunch Cafe for Sale in Tampa Florida.

Breakfast and Lunch Cafe for Sale in Tampa Florida.

Listing Id:9787 Lease Term:Expires April 2.. Monthly Rent$3568.56, Sq.ft.2300,
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