Don’t Buy a Thai Restaurant Without Completing These 3 Items

Thai restaurants are now pretty ubiquitous not only in larger cities but also within many of our country’s suburbs and even certain rural regions. Like other Asian restaurants, the surge in Thai businesses is attributed to Americans’ rising disposable income. Plus, since Thai dishes typically fall within the more affordable range (an average check total for one person is between $7-$10), consumers are more apt to visit these restaurants regularly, rather than only special occasions. If you’re looking to buy a Thai restaurant, make sure to complete these three steps early on to succeed in this industry.

Handling the Heat: How to Buy a Thai Restaurant Successfully

As with all restaurant purchases, the success of your Thai business depends on how well its community receives it. Once you settle on a great location, use this checklist to prepare for your transaction.

1. Learn Why the Thai Restaurant Is for Sale

   Before committing to any new venture, you’ll want to understand why it’s on the market in the first place. Implications the current owner deals with could affect your experience as an owner, as well. That’s not to say you shouldn’t consider any business with a less-than-ideal history or financial track record. Just because a current owner wasn’t able to attract a lot of customers doesn’t mean you won’t be able to – and vice versa. Ultimately, you’ll need to examine each Thai restaurant for sale on a case-by-case basis and determine if it’s worth the investment.

   

2. Examine Financial History

   Building off our last point, you’ll want to take a closer look at a venture’s financial information to determine if it could be a profitable Thai restaurant. The restaurant business is highly competitive, so you need to crunch numbers to make sure you’re able to turn a profit. The most successful Thai restaurants have other offerings alongside Thai cuisine. In addition to Pad Thai, Wok, Pho, and Tom Yum, see if there are other authentic Thai foods you can include to set yourself apart from the competition. Like other Chinese restaurants, you also should offer takeout to attract those who are coming and going from work.

3. Determine What’s Included in the Sale

   Business owners arrive at their asking price by considering every aspect of the sale. A large determinant in sales price is whether the seller can include real estate. Buyers are at a significant advantage when they don’t have to lease a building or parking lot space. Other intangible factors, such as goodwill, trained employees, and a liquor license, are also of great benefit to a buyer. These aspects enable you to skip many of the early entrepreneurial steps and jump right into creating the ultimate dining experience. For this reason, the best Thai restaurant purchases are often turnkey businesses.

Outside of Bangkok, Thailand, the best Thai restaurants aren’t only found in New York, San Francisco, and other large cities anymore. Authentic Thai is in all parts of the country, and with a proper business acquisition plan, you can be on your way to selling delicious Thai food. Begin your journey to buying a Thai restaurant by checking our database of restaurants for sale in your area. Also, be sure to contact your local Sunbelt Business Brokers office for professional representation.