BreakThru Realty

Sell a Restaurant in South Florida

Restaurants are the largest group of businesses for sale in South Florida, and the most likely to be sold badly. The lease, the liquor licence, the equipment and the staff decide the price as much as the sales do, and each of them can stop a closing.

Request a Confidential Business Valuation · (786) 914-1017

How Restaurants Are Valued

A profitable restaurant sells on a multiple of seller's discretionary earnings, usually lower than a service business because restaurants depend on the owner and on the location. A restaurant that makes little profit is sold on its assets: the build-out, the equipment, the licences and the lease, often called a turnkey or second-generation space. Knowing which of the two you are selling sets the right price and the right buyer.

The Lease Assignment

A buyer needs enough remaining term and options to repay a loan, usually ten years in total, and the landlord has to consent to the assignment. Many restaurant leases require the buyer to meet financial tests, charge an assignment fee or keep you on as a guarantor. We read the assignment clause before we list and raise a renewal or extension early if the term is short, because a restaurant with two years left is worth far less than the same restaurant with ten.

Liquor Licences

A beer and wine licence and a full liquor licence are different assets. In Florida, quota licences for full liquor are limited by county population and can be worth a large sum on their own, while special restaurant licences are tied to the restaurant's seating and food sales and are not bought separately. The transfer goes through the state Division of Alcoholic Beverages and Tobacco and takes time, so we build it into the closing calendar. Confirm the licence type and its transfer rules with the Division before you list.

Equipment and the Build-Out

Buyers want an equipment list with the owned items separated from leased ones, such as the dish machine, ice machine or point-of-sale system. The hood, fire suppression, grease trap and walk-in coolers need current inspections, because a buyer's lender and the fire marshal will check them. Deferred repairs come off the price at the table; fixing them before listing usually costs less.

Financial Records Buyers Will Ask For

Three years of tax returns, monthly profit and loss statements, sales tax returns, merchant statements and bank statements. Food, beverage and labour costs as a share of sales tell a buyer how the kitchen is run. Cash sales that never reached the tax return cannot be counted by a lender, so they do not raise the price.

Keeping the Staff Through the Sale

Kitchens talk. The restaurant is marketed without its name, buyers visit as diners or after close, and staff are told when the owner decides, usually near closing, with the new owner there. A kitchen manager and chef who agree to stay are worth real money to a buyer, and some sellers pay a retention bonus at closing.

Request a Confidential Business Valuation

Tell us the type of business, the city, how long it has operated, annual revenue, owner benefit or seller's discretionary earnings, EBITDA if you track it, monthly rent and lease expiry, number of employees, how involved you are, why you are selling, your timeline and whether you would consider seller financing. A licensed BreakThru business broker prepares a confidential valuation from comparable sales and replies within one business day. Everything you tell us is confidential, the valuation is free, and nothing is listed or announced unless you decide to sell. Prefer to talk now? Call (786) 914-1017.

Questions Owners Ask

What is my restaurant worth?
If it is profitable, a multiple of seller's discretionary earnings adjusted for the lease, the location and the liquor licence. If it is not, its asset value: the build-out, the equipment, the licence and the lease. A confidential valuation tells you which applies and gives you a range from comparable restaurant sales.
Can I sell my restaurant without the landlord knowing?
Until there is an accepted offer, yes. The landlord has to consent to the assignment, so they are approached with a qualified buyer and a financial package once the price and terms are agreed, not before.
Does my liquor licence transfer with the restaurant?
Usually it can, through the Division of Alcoholic Beverages and Tobacco, and a quota licence can be sold with the restaurant or separately. A special restaurant licence stays tied to a qualifying restaurant. Confirm your licence type early, because it changes both the price and the closing timeline.
How long does it take to sell a restaurant?
Often four to nine months to find the buyer, then sixty to ninety days to close while the lender underwrites, the landlord approves and the licences transfer.
What does a business broker charge?
Brokers selling small businesses usually charge a success fee paid from the proceeds at closing, commonly quoted in the market at around ten percent of the price, often with a minimum fee; larger sales are usually priced on a sliding scale. BreakThru's fee is set out in writing in the listing agreement before you sign anything, and the valuation costs nothing.

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