Five Things to Consider When Buying a Restaurant

3 Min Read By Bruce Hakutizwi

Last year, the restaurant industry saw record high sales and brought in over $790 billion — a $30 billion increase compared to 2016. There is no question that the restaurant industry is trending upward thanks to consumer demand, and many hungry entrepreneurs are cashing in on the fact that going out to eat has become a staple of everyday American life.

We will let you in on a little secret: running a successful restaurant begins long before you fire up the fryers. Feed your entrepreneurial spirit, and keep these top considerations in mind when scouting out restaurants to buy.

Real Cash FlowFinancial records can be misleading and personal estimates can be outright wrong. One of the most important metrics of a restaurant's profitability is real cash flow. Real cash flow is a figure adjusted for inflation and it better reflects the change in money value.

Real cash flow is a concrete metric of a restaurant’s profitability, and when it comes time to broker a deal, the sales price is…