A turnkey business is a business that’s existing condition allows for immediate operation. A turnkey restaurant is one in which the previous restaurant ceased operations, but all of the equipment is still in working condition.
With the downturn in the economy, more and more displaced workers are changing careers and going into business for themselves, including opening their own restaurants. However, even before the recession, a bulk of restaurants tends to come and go within the first three years of opening. Sometimes a restaurant will close up shop; other times it will change hands, with new owners who may keep the current name, menu, and concept or opt to change it altogether. There are quite a few advantages of buying an existing restaurant or taking over a previous restaurant space.
The Advantages of Purchasing a Turnkey Restaurant
1. Quicker to Market
One advantage of Turnkey restaurants is that they are virtually able to start operations from the minute the purchase is finalized. Designing, equipping, and starting an existing restaurant can be expensive and time-consuming. With turnkey operations start-up costs are often less, thereby making the length to market process much quicker. When putting together an offer be sure to consider any available inventory to acquire and that the restaurant is up to code for any opening inspections. If you are needing a valuation for a potential turnkey restaurant, email firstname.lastname@example.org. One of our trained professionals can work directly with you in order to help you get the best price on your restaurant package purchase.
2. Reduced Risk of Failure
Over 60% of restaurants fail in the United States in their first year of operations. Often this is due to lack of financial capital. When purchasing a previously existing business it’s important to note why they went out of business. Was it the location? The service? The food? A combination of all three? Make sure to try to ascertain why the restaurant went out of business before you buy or lease the space. One of the benefits of turnkey restaurants is that the length to market is reduced, thereby reducing the overall startup costs and risk of failure associated with a lack of capital. Secondly, the knowledge provided by the previous owners can help reduce the risk of failure.
3. Easy to Rebrand
Turnkey restaurants are also easy to rebrand as they are often a blank slate. It’s much quicker to take over an existing restaurant and purchase just a few pieces of specialty equipment in order to become operational rather than design a restaurant from the ground up and install all new equipment. Rebranding of restaurants includes new signage, uniforms, menus, and other graphic design work in order to be operational.
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