As a restaurant owner, you’ve invested a lot in your business. So, when the time comes to sell it, you may look around at certain assets – such as your kitchen equipment- and look for opportunities to bolster your ROI. As restaurant real estate agents, our clients occasionally ask us: Can you sell used restaurant equipment separately, before listing a business?
It’s a fair question. After all, if you paid good money for your restaurant’s appliances and facilities, it’s understandable that you will want to recoup some of your investment. However, going the second-hand re-sale route isn’t the best way to do that.
In this blog, we’ll look at how to get the best value from the sale of your restaurant by leveraging the assets you have to attract buyers.
Curious about the market value of your restaurant? Click here to get a free, no-obligation valuation from top industry specialists.
Should You Sell Your Restaurant Equipment?
If you’re about to list your restaurant for sale. You may be wondering, Should I sell my used kitchen equipment separately? On paper, yes – you can technically sell off your restaurant’s equipment. But should you? That’s a different question.
Looking for more guidance on selling your restaurant? Check out these other blogs from our site.
- Can I Sell My Restaurant If It’s Not Profitable?
- Selling Your Restaurant – What Happens After the Deal Closes?
- Finding the Best Agent to Sell Your Client’s Restaurant
What’s My Restaurant Equipment Worth?
In reality, the market for used commercial kitchen equipment isn’t as lucrative as some restaurant owners think. Unfortunately, restaurant equipment doesn’t appreciate like real estate or other assets. If you do choose to sell certain appliances or items independently, whether that’s online or to another local business owner, you can expect fairly minimal returns.
That doesn’t mean that your restaurant’s equipment, furnishings, and other supplies don’t have value. They do. However, you’ll need to sell them the right way if you want to get the best ROI.
Creating A Package Deal
If you really want to get the best return on investment on your restaurant equipment, it’s much wiser to sell it with your restaurant, rather than independently. Here’s why.
As the owner of one, you already know that setting up, stocking, and supplying a restaurant can take time. That’s why most buyers in the restaurant industry are looking for a turn-key, full package business.
So, rather than sell everything separately, you’ll see more value if you bundle things together. On top of all of your kitchen equipment and supplies, this includes other chattels like furniture, signage, and value-adding contracts like lease agreements, liquor licenses, etc.
At the end of the day, potential buyers will have their own unique plans for what they’d like to do with your restaurant. However, they will all want to hit the ground running when the deal closes. Therefore, the more turn-key your restaurant is, the more appealing it will be to buyers.
Looking for more fresh insights about selling your restaurant? Check out these blog posts.
- How to Stage Your Toronto Restaurant For Sale
- How to Sell a Business in Ontario
- When is the Best Time to Put Your Restaurant Up For Sale?
Be Sale Ready
Presenting your restaurant as an all-in-one, ready-to-run business is the best way to maximize your returns. With that in mind, taking stock of your restaurant’s chattels and assets will be an important part of the pre-listing process.
Any seriously interested buyer will require a detailed inventory of all items included in your restaurant’s sale. Having this information prepared and at the ready can make the selling process more efficient, while helping buyers see the full value of your business.
The same goes for financial records. Buyers will want to take a closer look at your restaurant’s financial performance as part of their due diligence. Regardless of how profitable your restaurant is, the more financial documentation you can provide, the better.
Work With a Restaurant Specialist
Finally, if you’re planning on selling your restaurant, the best thing you can do to maximize your results is to partner with a professional restaurant real estate agent.
The world of commercial real estate is famously complex, and things get even more complicated when it comes to restaurants and franchises. With that in mind, if you want to get the best result from your sale, you’ll need to work with a specialist – not a residential or general commercial agent.
Ready to sell your restaurant? Carve Real Estate can help! Reach us at ryan@carverealestate.com or call 416-618-0054.
