Use these 5 tips for increasing the value of your restaurant, so that when the time comes to sell, you get better offers.

5 Tips for Increasing the Value of Your Restaurant – Elan Capital

It might be soon, it might be decades, but the day will come when you say to yourself, “You know, I’m a little tired of this. Maybe I should sell this place.”

If you’ve managed to survive and your restaurant makes enough money that you can sell it and make a tidy profit, then congratulations. That market is for restaurants is booming. The median sale price of a restaurant rose from $149,500 to $160,000, from the third quarter of 2014 to the third quarter of 2015. Which means if you’re in the market to sell, you will want to make your restaurant as valuable as you can.

Here are 5 tips for increasing the value of your restaurant.

Build Customer Loyalty

Study after study shows that is costs 5-10 times more money to attract a new customer than to keep an existing one. And existing customers also spend 2/3 more than the new ones. Potential buyers know this, and demonstrating that you have a strong repeat customer base makes your restaurant much more attractive. By utilizing as much data collection as you can shows you’re putting an effort behind keeping those customers. Developing a strong rewards program shows you’re actively showing your appreciation, which in turn, keeps your restaurant customers coming back to your establishment.

Embrace Technology

Deloitte and Touche estimated that by the end of 2017 more than half of all retail transactions will have some sort of digital component. And no, we are not suggesting you build a mobile app, but you should embrace technology in your restaurant by adding things such as online ordering capabilities, digital menus, and current POS systems and most importantly a mobile-friendly website that is updated on a regular basis. A recent study by The National Restaurant Association found that 79 percent of diners think technology makes restaurants more convenient, and 70 percent believe it improves order accuracy.

Add a Delivery Service, or two, or three…

OK, maybe your restaurant is not placed in a trendy neighborhood with uniformed teenagers in mopeds careening through the streets and back alleys to bring office workers their favorite chow. But you may be missing out on a large chuck of the market share. Just one of the many services that picks up food from restaurants and delivers it to customers, GrubHub, found a 50% increase in revenue among small restaurants that signed up, along with a 20% increase in take-out orders. And that’s just one of the nationwide services. There are dozens more and hundreds of regional services. The more you delivery services you align with, the more valuable your restaurant becomes.

Happy Employees and Valued Vendors

It’s not just about your customers. Take your employees. Happy employees directly equates to good service and good service equals a valuable restaurant. In valuating your restaurant, potential buyers may try and gauge employee satisfaction. Make sure you are offering ample training and that you are presenting opportunity for development, as well as making every effort to accommodate their schedule requests.

On the vendor side, you certainly want the best pricing. But also investigate local farmers, sustainable agriculture, and other “green” and “organic” food initiatives that are hot right now. And strong relationships with vendors who supply these products and services creates value for your restaurant.

Might be Time for a Remodel

Nothing says you have to have the same look your restaurant had the night JR got shot on Dallas, at least the last time we checked. Sometimes a place really deserves a new look, a modern kitchen, better lighting, and more. There are few things that beat an overdo remodel in bringing value to a restaurant.

Elan Capital has flexible funding for restaurants. Whether it’s digital menus or a total makeover, Elan can help.

Because when it comes to the value of your restaurant, you get what you give. So while some of these tips for increasing the value of your restaurant won’t cost you much, others will require serious capital investment. It will pay off, should you decide to sell, but if the money just isn’t there right now don’t wait to get it done. Contact Elan Capital and we’ll get you on your way to increasing your restaurant’s value and increasing profits.

At Elan Capital, we treat our clients with honesty, courtesy and integrity. We guarantee an efficient service that achieves remarkable results. Our years of experience and notable expertise ensure that your access to business funding in Dallas, or wherever your business resides, is in good hands.

Talk to us. The call is free. Find out how we can help you.