A Positive Outlook For Restaurant Owners And Restaurant Buyers in 2002
FOR RESTAURANT OWNERS
There are a lot of buyers available as a result of corporate downsizing, layoffs and life style changes.
The current economy will probably keep inflation low which will help stabilize operating expenses.
Operators will have more flexibility in extending their leases with their landlords at more favorable terms and conditions and renegotiating existing leases with lower rents as result of a softer real estate market and higher vacancy rates.
The quality and quantity of prospective new employees is more favorable for employers as a result of higher unemployment.
There are many buyers who have a lot of cash available as a result of cashing out of the stock market and/or having pension money available to them as a result of early retirement.
FOR RESTAURANT BUYERS
Buyers will be able to negotiate more favorable premises lease terms than their predecessors as long as the real estate market remains soft and vacancies are high.
There are many sellers that are in trouble financially and need to sell quickly.
There are bankruptcy opportunities whereby you can buy new restaurants for 25 to 35 cents on the dollar with below market leases. (I have a couple of these listings currently).
Buyers can time their new acquisitions to coincide with the recovery of the economy so their new projects come on line as the economy is turning around.