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. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

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