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Thinking of Buying a Sports Bar/Restaurant

Hi I was looking at buying either a sports bar/restaurant or a franchise. But this question relates to buying an existing Sports Bar/Restaurant that is not a Franchise. I have about $150k-$200k to invest and I assume I can use that as a down and get a sports bar/restaurant for about $600-$700k using leverage?

What are the regular profit margins for a restaurant of that much? Assuming that restaurants sell at 3x the net income, one would assume the profit would be 30% or so of the buying price?

Is that realistic to assume? I see a lot of inflated cashflows on here but most of the listings look legit.

What is your opinion on buying an existing running non franchise restaurant for around 500-600k or would I be better off using that 200k to buy into a franchise like checkers or something.

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Try a deli and/or diner. It's hard work, but good rewards and fun. Plus in the right area it is an excellent investment that will grow. And you can do this anywhere there are people. We doesn't like to eat great food? Also, have 2 possible locations in Florida under a different name that may be available together or separate.

Nov 8, 2009
Damon Desautel
VR Business Brokers
Hillsborough County, FL
Premium Broker

It depends on your experience, if you are a more experienced operator you would be better suited doing your own concept. Before i became a business broker, I have owned 3 restaurants myself. They can be a very profitable business, but you can also lose it all if you are not on top of things and find the right deal. When looking at a deal, you need to consider a few things-
the lease- ideally the lease would be around 7% of the gross sales, some operations can go as high as 10 depending on what you are selling.
Market- know the market you are buying in
Location- is almost everything.
A well run restaurant should yeild an owner benefit of about 18-22% of gross sales.
I have a great deal now in winterhaven ,FL. business can be bought for 75K. full liquor 4cop steakhouse. Sales 2008 were 1.45 million.
He will sell the building, business and FF&E for 1.2 million. With your down, you could buy it all and still have a favorable mortgage to the sales. It is presently a steakhouse open only 6 nights per week for dinner. see website for details. listing on here under polk county florida-restaurants

Nov 2, 2009
Chuck Woolweaver
FranchiseConsulting.Net
Franchise Your Business in 60 Days
Palm Beach County, FL

I have one listed in Palm Beach County, FL
Sales: $786,000
Adjusted Net: $124,400
Price: $399,000 (price is a little high but negotiable)
Down: $200,000 with seller financing of the balance

Chuck Woolweaver
Business Broker
561-749-0767

Oct 14, 2009
Jon Holmquist
Edgemaster Model 400 sharpener
President
Marion County, OR

I don't know what state you are in but in Oregon there is a sports bar on every corner in every shopping center and even in people's homes.
If you are in a lottery state, having the lottery is a big advantage. They can be put up for very little money.
Check into starting one and keeping your money for starting year or two. My son's friend just put one in an building he couldn't rent for about $1,000.00. Not real fancy but open and doing business.
Check it out carefully and don't get caught in the flood of sports bars. Jon at Edgemaster

Oct 1, 2009

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