5 Must-Ask Questions Buying a Chinese Restaurant in Boston

According to local foodies, the Chinese restaurant industry in Boston has evolved immensely in recent years. In fact, the Chinese food in Boston has almost become a food category of its own called “Boston Chinese.” If you’re interested in joining this unique industry and buying a Chinese restaurant in Boston or Providence, continue reading Sunbelt Business Brokers’ list of must-ask questions. Equipped with answers to these questions, you’ll be on track to successfully buy a restaurant.

Buying a Chinese Restaurant in Boston? Ask These 5 Questions First!

You’ve found a Chinese restaurant for sale in Boston that you’d like to purchase, and you’re ready to take the next step. Be sure to ask the following questions prior to signing on the dotted line.

1. Why is the Boston-based Chinese restaurant for sale?

Ask the existing owner why he or she is selling the Chinese restaurant. Common reasons to sell include retirement, new opportunities, and burnout. If the owner indicates that they are selling for financial reasons, take this as a red flag that business may not be doing well. Although the restaurant may turn around under your ownership, you’ll want to conduct some more due diligence.

If the financials don’t meet your expectations, don’t worry! Sunbelt Business Brokers has an extensive network of sellers in the restaurant industry that are looking for interested buyers. Browse our listings to find more restaurant businesses for sale in Boston or Providence.

2. How is this Chinese restaurant different than other restaurants in the Boston area?

Before purchasing this restaurant, you must ensure it stands apart from other Boston-based Chinese restaurants. Things to ask yourself or the existing owner include:

• Does this restaurant have a long history in the Boston area?
• Are health-conscious options served at this restaurant?
• Does the restaurant offer pick up and delivery options?
• What is the restaurant’s reputation in the community?

All of these questions impact a consumer’s decision to go to one restaurant over another. Be sure that there are elements of this Chinese restaurant that differentiate it from others.

3. Is real estate included in the deal?

Ask the restaurant owner whether the space is leased or owned. If the space is owned, inquire whether or not the real estate is included in the sale of the business. If the space is leased, consult with the landlord to determine whether or not the lease can be transferred.

4. Are kitchen equipment and furnishings included in the sale of the restaurant?

Between tables, chairs, bar equipment and kitchen equipment, costs add up quickly when you own a restaurant. It is crucial that you ask the owner whether or not equipment and furnishings are included in the sale of the restaurant. Keep in mind, a commercial range alone can cost upwards of $3,000. If the equipment and furnishings are not included in the sale, you must budget for these costly items.

5. How did the restaurant owner arrive at his or her asking price?

Before making an offer on the Chinese restaurant, be sure to ask the owner how he or she arrived at the asking price. An asking price without a professional valuation behind it is likely negotiable.

The best way to ensure your due diligence and buying process go smoothly is to hire a business broker. Business brokers can help you find a Chinese restaurant for sale in Massachusetts that fits your budget and criteria.

Learn more about working with a business broker to buy a Chinese restaurant by contacting Sunbelt Business Brokers of Boston & Providence. Our experienced staff can assist you from start to finish.