Selling Your Mexican Restaurant?
In 2008, restaurants began to feel the effect of an economic recession, and new restrictions from COVID-19 has made it even harder. Coronavirus-related restrictions contributed to a decline in the ability to make and maintain food and beverage supply orders, find proper staffing at reasonable wages and even allow the patrons to safely dine in your establishment. This has added more pressure for the business owners, a higher demand for even more of their valuable time and money, and created an influx of Mexican restaurants for sale. Last year over 110,000 restaurants closed their doors permanently, and in 2021, it is expected that another 190,000 will do the same. Mexican restaurant owners who have made the painful decision to close can often find themselves overwhelmed. Besides finding a serious, qualified buyer, there is the extensive chore of liquidating their business’s furniture, fixtures, equipment and supplies (FFE). At WBAR, we understand making the decision to close your Mexican restaurant is a very difficult one. Let us make this simple for you. Our team will make you a cash offer so you can begin the other tasks associated with restaurant closure – contacting the proper legal entities, notifying the state, your employees, and your customers. Request a FREE valuation today, and our experts will begin the process with you. We’ll need to ask you for some information, few photos & we’ll even help create your asset list which may include: Refrigeration (Coolers, Freezers, Walk-ins) Cooking & Processing Equipment (Tortilla Press, Corn Grinder, Fryer, Oven) Booths, Tables, Chairs, Bar Ice Machine, Dish Washer, Grease Trap System Lighting System, Sound and Alarm System, POS Smallwares (Front and Back of House) Any Other Non-Permanent Assets in the Property After reviewing the information you will receive a FREE cash offer with NO obligation. Once the offer is accepted our team will immediately begin scheduling your extraction using qualified labor and proper tools and transportation. Still owe on your equipment? Leases? Multiple owners? Franchise agreements? Outstanding debt? IT DOESN’T MATTER. We can help. CALL NOW!! We Know the Restaurant Business When opening a new Mexican restaurant, owners must consider their regional area and select a location that will allow maximum visibility and profitability. Some markets seem to strongly prefer delivery options, utilizing the convenience of food delivery options such as GrubHub, DoorDash, Uber Eats, Postmates or Caviar, while others choose to more frequently dine in. Outdoor dining on a patio, porch or other dedicated space can increase in the warmer seasons for variable climates, and year-round in warmer states will increase your traffic, particularly on holidays and evenings considered “date nights”. It is best to offer a space specifically for those non-smoking guests if your state allows for smoking indoors. Consider a condiment/topping bar and specials for Taco Tuesdays. The average cost to open a Mexican cantina, taqueria or restaurante in the US is $350,000.00. When starting from scratch and designing a build-out to open a new location it should be mentioned that you should expect at least 12 months before beginning to see a profit – maybe even longer when taking into account labor shortages resulting in higher wage requirements, food and beverage shortages along with reduced capability to provide expedited delivery of those commissary orders resulting in higher costs, higher security deposits or stricter lease terms and requirements for lessors since landlords, property owners and commercial property owners that lease restaurant spaces have experienced a higher incidence of broken leases, bankruptcies, non-renewals or simple business abandonment due to the large amounts of loss suffered in lieu of profits for these businesses. In addition, the owner needs to consider whether they can await profitability while maintaining their own financial responsibilities and while awaiting the business to generate enough profit to properly pay them for the many hours they will be putting into the business. Anyone who has ever owned a Mexicano restaurante or any other type of food establishment knows that working twice as hard for half as much is almost a given, usually it needs to be enough working for the simple reward of a business that makes enough money to make up for all of the time and energy they have poured into their family business or franchise. In 2021 there are 48,000 Mexican restaurants open and operating in the US. The oldest is reported to be El Charro Café, established in 1922 and still serving recipes from the original family in Tucson, Arizona. Across the US, Mexican food is the second most popular cuisine, second only to Chinese food. Humble, Texas is considered to be home to the most authentic Mexican restaurants per capita. Since Mexico’s national dessert is Platanos Fritos, it is considered a staple for most authentic Mexican eateries, however the most common Mexican dessert is Flan, and Mexican wedding cookies are very popular in traditional ceremonies. It is estimated that for every 100 Mexican restaurants that open, only 3 will remain open after 5 years, with 90 of those closing within the first year. If you are considering selling your Italian restaurant, you understand the market. It is best to sell fast - sell NOW - before thousands of other similar restaurants flood the market, devaluing your investment right alongside the daily depreciation factors. Stop struggling to earn a living, and start living! Call WBAR NOW for your FREE valuation.
