Sell Your Café, Restaurant or Hospitality Business in Melbourne

Food and hospitality is the industry we sell more of than any other. Since 2017, Vic Brokers has sold cafés, restaurants, takeaway shops, bars, bakeries, bottle shops, supermarkets and food franchises across Melbourne and regional Victoria. We know what hospitality buyers ask, what their accountants check, and what makes a food business sell.

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Hospitality businesses we've sold

A selection of food and hospitality businesses Vic Brokers has sold:

IGA supermarkets and independent grocers
Subway and other food franchises, including pizza, juice bar and health food stores
Cafés, from small coffee shops to large café-restaurants
Licensed restaurants and bars, including venues run under management
Pizza, kebab, charcoal chicken, burger and fish and chips takeaways
Bakeries, gelato businesses and coffee roasters
Bottle shops and liquor businesses
Fruit and vegetable shops and food delivery businesses

What buyers look for in a hospitality business

Hospitality buyers range from first-time owners buying a job, to experienced operators adding another venue, to investors wanting a business that runs under management. Most of them focus on the same things:

Reliable trading figures. Buyers want weekly sales they can verify through POS reports, bank statements and BAS, not just the owner's word.
A realistic wage bill. Buyers will calculate what the business earns once every shift is paid at award rates, including the hours the owner currently works.
Rent they can sustain. Rent relative to turnover is one of the first numbers a hospitality buyer checks.
Trading hours that suit them. A business trading five days is often more attractive than one open seven days for similar profit.
Condition of the fit-out and equipment. Buyers budget for anything that will need replacing soon, such as coffee machines, coolrooms and exhaust systems.
Online reputation. Google and delivery-app ratings are often checked before a buyer even inspects.

What affects the value of a food business

Most hospitality businesses are valued on their adjusted net profit: profit with one working owner's wage and any personal or one-off costs added back. Where a business lands in its price range then depends on:

The lease. Remaining term, renewal options, rent reviews, and whether the lease allows the current use. A short lease is the most common reason a good hospitality business sells for less than it should.
Owner involvement. A café where the owner works every shift is worth less than one with a manager and trained staff.
Consistency of sales. Steady or growing weekly takings across several years give buyers confidence.
Location and foot traffic. Neighbouring tenants, parking, and any nearby development or roadworks.
Licences and permits. Liquor licences, footpath trading permits and seating capacity all add to what a buyer is getting.
Franchise terms. For franchised stores, the time left on the franchise agreement, royalties and any required refurbishment.

Things to sort out before selling a hospitality business in Victoria

Lease. Talk to your landlord early about extending the lease or adding an option, and about consenting to transfer it to a buyer.
Food business registration. Food premises in Victoria are registered with the local council, and a new owner has to arrange registration in their own name. Make sure your registration and recent inspection reports are in order.
Liquor licence. If you're licensed, the licence has to be transferred to the buyer through Liquor Control Victoria, so allow time for this in the settlement date.
Franchise approval. If you run a franchise, the franchisor usually has to approve the buyer and the transfer. We involve the franchisor from the start.
Staff. Have employment records, award classifications and leave balances up to date, because buyers and their accountants will ask for them.
Equipment list. Prepare a list of the plant and equipment included in the sale, noting anything leased rather than owned.

How we sell hospitality businesses confidentially

In hospitality, word that a business is for sale can unsettle staff, regular customers and suppliers. We advertise without naming your business, screen buyers before they see any details, and require a signed confidentiality agreement before releasing your figures or address. Inspections are arranged to suit your trading, usually outside busy periods.

Frequently asked questions

How long does it take to sell a café or restaurant in Melbourne?

Most hospitality businesses receive an acceptable offer within 2 to 6 months of going to market. The lease transfer, and any liquor licence or franchise approval, then usually take another 1 to 3 months before settlement.

Is my café worth a multiple of its profit or just the value of its equipment?

A café with steady, provable profit is usually valued on its adjusted net profit. A café that isn't making a profit is often sold for close to the value of its fit-out and equipment. An appraisal will tell you which applies to your business.

Can you sell a Subway or other food franchise?

Yes. We've sold Subway stores and other food franchises. Franchise sales need the franchisor's approval of the buyer, and often a review of the franchise agreement and any refurbishment requirements, so we work with the franchisor from the start.

Does a liquor licence transfer with the business?

A liquor licence can usually be transferred to the buyer, but it isn't automatic. The transfer is lodged with Liquor Control Victoria, and the contract is normally made conditional on it being approved.

Is stock included in the price of a hospitality business?

Usually not. The price normally covers the goodwill, fit-out and equipment. Stock is counted at settlement and paid for on top of the price.

Thinking of selling your hospitality business?

Start with a free, confidential appraisal. You'll get a realistic price range and a clear picture of what's helping or holding back your business's value.

Call (03) 9918 6739 or request your free appraisal. You can also read about selling your business with Vic Brokers.