It may seem risky to buy a new restaurant when we still do not know how long restrictions will occur. Our local industry experts are saying that this is a prime moment to buy a restaurant in PA.
The restaurant industry’s comeback is predicted to be huge
Current predictions estimate that the demand for eating out will be higher than ever before when it’s widely accepted as safe. Many restaurant industry experts are expecting a second Roaring 20’s boom as soon as this summer.
68% of consumers said that they are “very excited to dine in” at restaurants again once they feel it’s safe, according to a 2021 Technomic Omnibus Survey. This pent-up demand should start to explode as vaccination rates increase.
Many prime locations are available in PA
Though the reasons are deeply unfortunate, there are many locations available for those who want to buy a restaurant in PA. Whether you’re looking to purchase real estate or lease a restaurant space of any size, there are options in many parts of the Greater Pittsburgh Area.
Things to consider when choosing a restaurant location:
- Foot traffic and visibility from the road
- Delivery area window
- Local competition
- Size of the space and cost of rent
- Demographic of the area
- Your future commute
- Set up and included fixtures, furniture, and equipment (FF&E)
Many landlords are also offering discounted rent and other lease features to fill their spaces. These features will likely go away as demand builds again, so starting the process now allows you to get in ahead and take advantage of the opportunity to find the perfect space and location for your concept.
Unique financing options exist to buy a restaurant in PA
As a result of ongoing economic uncertainty, there are unique financing options to try to give the economy a boost. The Small Business Administration (SBA) provides assistance and guarantees for loans, allowing restaurants to get funding with “Lower down payments, flexible overhead requirements, and no collateral needed for some loans.” Temporarily they are offering some incentives to help further with financing and those will likely disappear in the summer, so now is the time to take advantage of them.
Many other banks that do restaurant financing are also looking for opportunities during this time. If you need help connecting with the right banks and providing a proposal that’s likely to get accepted, our financing services can help!
You need time to plan
If you’re looking to open a new restaurant, you need some time to get everything in order. Usually, time isn’t on your side because the sooner you open, the faster you can start making money. Now is the perfect time to get started, though, because you’re just ahead of the restaurant boom.
Things You Need to Plan Before Opening Your Restaurant
- Put together a great team
- Complete market research
- Obtain suppliers.
- Develop a menu and determine pricing.
- Get a marketing plan together.
- Plan your big opening.
If you try to get this all done once restaurants are fully open and demand is high, you’ll be behind the restaurants that have weathered the pandemic so far.
If you need help getting your plan in order, contact us for consulting! Our typical consulting agreement is for 3 months, which is perfect for getting you off the ground for summer.
Assistance is readily available for restauranteurs
There’s more assistance than ever for restauranteurs from industry associations and small business support organizations. Everyone in the industry wants to see restaurants filled up and owners thriving again, so they are making assistance easy to find and access.
Resources for PA Restauranteurs
- PRLA Coronavirus Resources
- SBA Local Assistance/ Coaching
- US Foods Resources and Webinars
- Restaurant Business Webinars
For more in-depth consulting, we can help! Sofranko Advisory Group provides consulting services for restaurant owners or potential restauranteurs for everything from concept development and staffing to financing and liquor license services. And if we don’t have an expert for you, we can connect you with our network of trusted providers to help you be as successful as possible.