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From the category archives: Certified Business Brokers News

Buying a restaurant is one of the riskiest business purchases you can make. We're here to make sure your get the best price and a smooth transaction.

What Drives The Value of a Restaurant?

The valuation of a restaurant is much like any other business valuation. But, there are certain factors unique to the restaurant industry. The following are key elements that impact the valuation of food and beverage businesses. The list is not in any specific order.

1. Location, Location, Location

A high traffic, high demand, prime location with booming business in the area and a mid-to-high income population can add significant value. Parking, signage, and access are also important. Keep in mind, however, that a good location is not a stand-alone secret to success. Location Location Location must be followed up with Execution Execution Execution! Good management is key. Over the past 40 years we have sold some restaurants and fast food places as many as four times. With good management, the same location that was once a loser can be turned into a winner by good management -- and vice versa.

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Texas Restaurant Industry - Biggest in the Nation in 2009

Texas has long been the hot bed of restaurant activity in the U.S. With roughly $35 billion in sales expected in 2009, the restaurant industry in Texas is anticipated to be the leader in the restaurant sector in growth, according to the National Restaurant Organization, as reported in the Wall Street Journal. The $35 billion figure represents a 4 percent increase in sales year-over-year. That's down from 5.6 percent growth in 2008, but still shows that Texas restaurants are bucking the recession. The national sales growth rate is expected to be almost half the growth of Texas at 2.5 percent. In December 2007 California was #1 in restaurant sales, with Texas in the #2 position. We all know where California stands this day. Texas has outpaced the has-been leader and is kicking butt. “Even in these tough economic times, it is clear that the Texas restaurant industry is the best place to do business in the nation,” said Richie Jackson, executive vice president and chief executive of the ...

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