The food industry is one full of constant change, excitement, and expansion. As an industry which serves to fulfill one of the most basic human needs, a business purchase in the food industry can be successful from day one when you know what elements to look for. Food service is an industry chalked full of purchasing options such as dining establishments, fast-food chains, and food production. Realizing the various elements and components within each sub-industry, and knowing how to value a small business for purchase will help any individual buyer make the optimal purchasing decision.
When you are looking to make a food service related business purchase; it is crucial to take note of the demands of that particular business. An owner’s workload in a food service business can be just as exhausting and demanding as the job of the frontline staff and may require working more than the typical 9 to 5 work schedule that other industries offer. The successful purchase of a food service establishment should be completed by an individual with prior experience in the foodservice industry who understands the demands that need to be met daily.
If you are stepping into the world of owning a food industry business, consider buying a current franchise whose owner is looking to part with their business, or directly from a franchisor itself. With tried and true systems and policies already in place, you can take the stress out of business acquisition, and connect with a network of food service professionals who have knowledge of the franchise’s inner workings and provide ongoing support.
Most food service establishments must be fully furnished and equipped with high quality, and sometimes expensive, commercial kitchen equipment to be considered a functional kitchen which meets health code requirements.
While considering the purchase of any given establishment, take note of the condition of the existing interior and its equipment. If the establishment boasts an updated and well-designed kitchen but has a drab dining room, a small investment in the décor may be all it takes to increase customer satisfaction, and increase revenue. Structure and revise the value of any foodservice business with these added costs and considerations in mind.
The purchase of a successful and growing business will initially cost more than an investment in a business that has plateaued financially or is located in an undesirable area. A worthwhile purchase will involve a greater investment initially, but will inevitably pay off in future years. When you are looking to invest in a food industry business, investigate the market trends of the specific type of business you have your eye on.
Purchasing a business in the foodservice industry can be completed successfully when a buyer is knowledgeable about the industry and understands what makes a food service establishment effective and profitable. Talk with a Transworld consultant today for more practical tips on the purchase of a food industry business.