8 Things You Should Know Before Buying A Restaurant
Food is the most common binding factor which brings people together. Connoisseurs anywhere in the world love to visit restaurants and enjoy an assortment of flavours and cuisines. While there are some who dream of launching their own eatery, others take culinary lessons to hone their talent. Serving meals of tasteful delicacies and earning prise in response has been a desirable profession for ages.
There is little doubt that acquiring a restaurant is the most sought-after business choice among entrepreneurs. If you too are looking for a similar business for sale in Australia, then you must equip yourself with the right information. Our country offers a melange of diverse cultures which make people try all kinds of cuisines with a lot of enthusiasm. That is why it is easier to open a restaurant here than anywhere else in the world. T
he industry generated $19 billion in revenue in 2018-19, and the demand for quality dining experiences is rising by the day. So to become a part of this booming sector, you must know about the things listed below.
1. Be Ready For A Highly Competitive Market
The thriving industry has ensured the mushrooming of restaurants in every commercial precinct and shopping centre. From upscale and extravagant fine dining restaurants to hole in the wall eating joints and food stalls, there is no dearth of Masterchefs cooking up a storm in their kitchens. From Chinese, Italian, Indian and Lebanese to Japanese and Mexican, you can find delicious varieties being served in authentic style in the country.
Thus when you are purchasing a restaurant, you need to survey the market for the kinds that are doing well. You need to evaluate the food, presentation and ambience offered by these popular eateries. You must figure out what makes the customers turn into loyal and repeat buyers.
2. Create A Unique Selling Point
To survive in the market and stand out from the clutter, you need to think of a unique proposition which can entice the customers. When you are purchasing an existing restaurant, you will get access to the customer database. However, you need to sustain the relationship with your visitors and it needs employing some loyalty marketing ideas. If they have been coming to the place for its food, then you will have to maintain the same quality and taste.
On the other hand, if they have been visiting for its hospitality, then you need to go a notch higher to meet their expectations. The idea is to keep your guests satisfied with a unique offering that does not allow them to go to your competitor.
3. Follow Food and Safety Regulations
As the owner of a food-related business, you have to abide by the regulations set forth by the Food Standards Australia New Zealand (FSANZ). The independent agency regulates the use of ingredients, colouring agents, additives, etc. Additionally, you must adhere to the Food Act 2003 (NSW) which defines suitable and unsuitable food. If you fail to comply with these health and safety regulations, you can get penalised and then your business will have to bear the brunt of the financial crunch. Also, you need to have a food safety supervisor available in the restaurant at all times. This person is responsible for compliance with regulations.
4. Get The Liquor License
If serving hard drinks and liquor is going to be a part of your menu, then you need to acquire the liquor license from the office of liquor in your state. For example, if the restaurant is located in Queensland, then you need to contact https://www.business.qld.gov.au/industries/hospitality-tourism-sport/liquor-gaming to get the required paperwork done. In case, the outgoing owner had a liquor license, then you must get it transferred well in advance to start serving alcohol in your premises as soon as possible. The transfer part can take time and a lot of documentation. So be ready to deal with it.
5. Hire The Best Staff
The hospitality industry is dependent on customer service, and you must put your best foot forward when dealing with the customers. Moreover, when you own a restaurant, the driving factor will be your chefs, bartenders, waiters and kitchen manager. You need a highly skilled and experienced team of chefs who can create wonders in the kitchen and make drool over the food. It is the best way to get people to come back to your restaurant again and again. So spend some time on finding the best people in the business or ask the outgoing owner to retain the staff and speak to them about the change in management.
6. Negotiate With The Suppliers
Every restaurant thrives on the procurement of its raw materials and their quality. So you must ask the seller to provide you with the details of his suppliers and introduce them to you. Otherwise, it can become difficult for you to find new suppliers and get the quality that you want. You can also negotiate on the prices as they have been doing business with the outgoing owner and will be happy to give you a discount. You must get fresh supplies every day to maintain the standard of food
7. Marketing And Advertising
You will have to understand your target audience and their likes and dislikes before entering this territory. Every business needs marketing and advertising, and thus you need to set aside a significant part of your budget for this purpose. It will be a good idea to follow the footsteps of the outgoing owner and utilise the same channels and platforms to promote your restaurant. Plus, you must target new networks to reach out to a broader audience. From fliers, radio ads and point of sales material to social media engagement and collaboration with food delivery apps, you need to include everything in your marketing budget.
8. Review Stock And Equipment
When you evaluate a business for buying, you must assess the value of the stock which will form a part of the asking price. Besides the inventory, you need to consider the list of equipment being offered and its condition. A restaurant business requires a whole lot of industry-grade high-quality appliances such as microwaves, mixers, walk-in cool rooms, freezers, coffee machines, etc. You must ascertain whether it is enough for you to keep your business running without facing any challenges. Ensure everything is in proper working condition and not on the verge of becoming useless as you will be paying for it. Raise your concerns before the sale of the business and get everything settled to avoid any losses.
Acquiring a restaurant business for sale in Australia is an exciting and lucrative proposition which can help you secure your future. It will involve a lot of hard work as well as fun. Thus to ensure smooth functioning of the venture, you must get yourself familiar with all the things mentioned above.