18 Oct Restaurant Rules of Thumb
The following chart gives you rules of thumb for many different types of restaurants. It comes from Charles Perkins, president of Boston Restaurant Group, Boston, MA. Charlie is one of the leading restaurant brokers in the country.
Bagels | 30% of annual sales | Not as much interest today |
Bars | 50% of annual sales | Very much in demand everywhere |
Bar & Grill (50% Liquor) | 40% of annual sales | Very popular |
Barbecue | 30% of annual sales | Limited pool of buyers |
Bistros | 30% of annual sales | Typically chef owned |
Brew Pubs | 40% of annual sales | |
Billiard Parlors | 40% of annual sales | Limited pool of buyers |
Cajun | 30% of annual sales | Not big in New England |
Catering Businesses | 30-40% of annual sales | Seller may have to stay |
Caribbean | 30% of annual sales | |
Chicken | 30% of annual sales | |
Chinese | 30% of annual sales | Of reported sales |
Coffee House | 30% of annual sales | Higher ingredient cost |
Continental | 30% of annual sales | Heavy/rich menus not in vogue today |
Deli | 30-40% of annual sales | Higher value if only 5/6 days |
Diners | 30% of annual sales | |
Fine Dining | 30% of annual sales | |
Gourmet Shops | 20% of annual sales | Plus cost of inventory which can be expensive. |
Hamburgers | 30% of annual sales | |
Ice Cream | 35-40% of annual sales | Higher volume in warmer climate |
Irish | 40% of annual sales | If high liquor sales |
Italian | 30% of annual sales | Value down today |
Mexican | 30% of annual sales | |
Night Clubs | 20% of annual sales | High risk rate lowers value |
Pancake House | 30% of annual sales | |
Pizza (if delivery) | 30% of annual sales | |
Pizza (if no delivery) | 40% of annual sales | |
Sandwiches | 40% of annual sales | |
Seafood | 30% of annual sales | Very high food costs |
Sports Bars | 40% of annual sales | Beverage sales over 40% |
Steakhouse | 30% of annual sales | Very high food costs |