How valuable a meal ticket is it?

2008-05-12 00:00

This past month, I devoted a large part of my columns to the subject of buying a business. Your response, both through e-mails and general chats, suggest that the subject represents a high interest factor. I would place at the top of the list in this regard those people thinking about buying, selling or opening a restaurant about which a number of questions were raised.

The best way to fix or verify an asking price is to actually spend a month in the business — you can then establish the turnover during the month and set a "value" by multiplying this monthly turnover by four. Carrying out this exercise will not only help you check or determine a selling price (asking price four times monthly turnover), it will also give you a good handle on the type of customer and frequency of visits they make to the restaurant.

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