Bistro business is a very common type of small restaurant in European countries, which has become popular also in the United States . Although many people believe that this is a french invention, studies show that the bistro was created by the russians in 1815 when they invaded Paris. Rumour has it that they entered a french cafe shouting “bistro”, which means “fast” in russian. Over the years, this term has been adapted by the french to create a new type of business.
At the beginning, bistros businesses were a cheap business model in the food industry usually led by french families. With a very short menu, bistros owners used to offer traditional french cuisine in very generous and also cheap portions.
Basically, it can be said that bistros are characterized by being small restaurants with simple and rustic decor, but at the same time cozy. From the twentieth century, bistros started to gain a more sophisticated concept and owners lives got more difficult in a result.
Bistros can be very profitable, so if you are thinking of selling it, you better know how to make the correct valuation.
What is your Bistro business worth?
If you have a vocation for entrepreneurship, you know you have invested in a business that tends to grow very quickly, especially in large american cities – and this has to be emphasized in the negotiations with the potential buyers.
Show them that this can be a great business opportunity for the food industry – one of the country’s economic base – is one of the fastest bill in the US.
Make sure you tell potential buyers and show them how nice your business atmosphere is, as well as your high standards when it comes to quality food. Show that in the short term, a well-run business can be great source of income, even if direct competition is high.
- What are the sales?
- What is the profit?
- What are the growth trends?
- What is driving new sales and is that sustainable?
- What channels do new customers come from and what is the breakdown of each channel?
- What is your market position?
- Is your Location favorable?
- How reliant is the business on the owner?
- What systems and processes are in place to run the business?
What makes a Bistro business worth more?
Your business has a chef running the kitchen? This is a very important differential for any bistro business, but if you rely on balconies and harmonized tasting menu with drinks, you have will add many points to your enterprise in your potential buyers eyes.
A bistro, as a small business it is, has medium level of complexity. Make sure you include this argument to your potential buyers as well.
- Predictable key drivers of new sales
- Stable or growing traffic from diversified sources
- Established suppliers of inventory with backup suppliers in place
- Traffic stats
- High percentage of repeat visitors and repeat sales
- Clean legal history
- Brand with trademark, copyright or legal concerns
- Documented systems and processes
- Growth potential
What does the average Bistro business sell for?
Since 2005, there has been 99 bistro business sales in the United States. In this period, total transaction value was almost $18 million and average sales price, $180k.
If you look at the average multiple, you’ll see that you’ll probably take a good profit from your bistro sale, a little bit less than the double.
What is the most frequent deal size?
Most frequent deal size is $150k, just a little bit smaller than average sales price, so it means you’ll probably get this amount of money from your bistro sale.
It happens especially because most of bistros sold are small businesses.
Is the Bistro market getting bigger?
We can’t exactly say that, but 2015 was a good year for bistro market, that’s for sure. On the other hand, 2014 was even better. But it all depends on the number of bistro sales and when the sale happened.
Are bigger businesses worth more?
In the past two years, bistro sold for more than $250k and less than $500k had a higher profit than any other one, but, as we have already told you, it is more likely you sell your business for less than $250k, especially if the business you run can be considered a small one.
What states have the most business deals?
Are you wondering where the most deals were made throughout the country, or if your state has a hot market to sell fast? As you can see if you are located in California or Florida, you may get a lot more offers than if you are in Ohio or New Jersey. But sometimes you can overcome the low number of deals with investors or competitors looking to enter a specific new area, and get lucky with an offer.
Why would you sell in the first place?
The reason to sell always varies from each person. Maybe you are looking for new challenges, businesses and opportunities, or you just want to enjoy your family and retire. Although it can seem tempting to get your hard worked cash, make sure that you are clear on the motives so you don’t regret afterwards.
How long will it take to sell your Bistro business?
If you have read all the necessary steps to understand your valuation, and think you have focused on all the topics that make your company worth more, it is maybe time to start the process. Selling your business is a long-term process, and doesn’t happen overnight. Usually companies sell in 12 months, but you can also see deals getting closed in 6 to 9 months depending on the opportunity.
What is the process of selling your business?
This step by step process will help you get less confused when you make sure you are ready and confident to let go of your business, and perform a nice and positive sell. Many entrepreneurs forget about a step, or just don’t have the right guidance to know all the stages necessary and get lost through the process. Don’t forget to go through all of these, and if you have any questions, comment at the end of the article or contact us for more help.
Who will buy your business?
If you are wondering about the buyers that can be interested in your Bistro, don’t worry, there are many options and possibilities. From First Time entrepreneurs, to businessmen interested in new opportunities, the chances are that in the bistro industry it may likely be a person who already had a store in the field.
Bistro businesses can be very profitable, but most of them are smaller ones. If you are thinking of selling it, you will probably get the same amount of money that has been of the average sales price in the past ten years, when there has been 99 bistros sold in the United States.
If you want to start accelerating your buyout process, fill out our free valuation form and get your business valued today. Leave your comments on any doubts or feedback, we are glad to hear your thoughts.