Fresh and healthy Thai cuisine options aren’t just for Thailand and the coastal cities in California and New York anymore. The popularity of Thai food has spurred these restaurant businesses to take off in the United States. However, after years of steady growth, the COVID-19 pandemic has negatively impacted the food service industry. Whether these challenges or your life circumstances have you considering exiting your business, ensure you’re prepared with these professional tips to sell a Thai restaurant.
Southeast Asian cuisine, sushi restaurants, and Thai fusion restaurants have risen in popularity over the years. Before you list your Thai restaurant for sale, find out the essential steps in preparing your business for a seamless transition of ownership.
The first step in any sale is to consider how you, as the business owner, will leave your Asian restaurant. Take some time to determine your goals for the future and how they will impact the new ownership. Consider questions that potential buyers will ask to understand how the restaurant will function without your presence. At a minimum, ask yourself the following questions:
These questions will keep you on track and help potential owners develop expectations for how the business will run in your absence.
Prospective Thai restaurant buyers will want to review a variety of paperwork from your restaurant. Besides providing a clear picture of the business’s annual cash flow and revenue, prepare documents that outline leasing terms or real estate information.
Even if you have a great location and a profitable Thai restaurant, there are likely still improvements that will make your business even more attractive to the right buyer. The selling process takes an average of six to nine months. Make the most of that time by ensuring that your eatery is in tip-top shape.
Look at your restaurant through the eyes of a potential new owner evaluating a business opportunity, and minimize the effort it will take them to get up and running. Update any outdated decor, repair any damages, and clean grease traps and appliances.
If you’re not in a prime location with high traffic, consider pushing take out on your social media and work to set your restaurant apart. Showcase high-quality dishes or expand your menu to include trendy Thai fusion cuisine, sushi, or Vietnamese. Lastly, if you haven’t already, consider applying for your wine license or liquor license. These improvements can showcase your business as a great opportunity and potentially increase your asking price.
As the current owner, it’s natural to have an emotional connection to your business. The time and sweat that you’ve put into building it can cloud judgment regarding a fair price. Plus, valuing a business is complex. Working with a professional, third-party service will help you ensure that your asking price is equitable.
With those steps complete, you’re on your way to listing your business for sale. While you can list independently, you’ll likely find yourself competing with a slew of other Thai restaurants for sale. Instead, consider hiring a broker. Professional business brokers have the experience to ensure that your Thai cuisine business gets in front of the right prospective buyers and can help you every step of the way.
If you’re ready to list your Thai restaurant, consider enlisting the help of your local Sunbelt Business Brokers office. We have the largest network of brokers in the industry, so you can rest assured that your business sale is in good hands. Let us take care of the business transfer process while you focus on running your own business.