What a buyer looks at in a pizzeria
| Sales by channel | Dine in, carryout, your own delivery and third party apps, with what each costs you in fees and labor. |
|---|---|
| The lease | Years left, renewal options, rent increases and whether the landlord must approve a new tenant. |
| Kitchen | Ovens, mixers and walk in coolers, with age and service records. |
| Recipes and systems | Written recipes, prep sheets and ordering routines a new owner can follow. |
| Liquor license | Whether you hold one, its type, and whether it can transfer to the buyer. |
The Lease Comes First
For a restaurant, the lease can make or break the sale. A buyer and its lender want enough years left to pay off the purchase, usually with renewal options. If the landlord has to approve a new tenant, talk to your attorney about when to ask.
A short lease does not kill a deal, but it lowers the price and narrows the buyers.
Proving the Sales
Buyers trust what your point of sale system and bank deposits show. They compare those to your tax returns. Cash that never made it to the books does not count, no matter how busy Friday nights are.
Third party delivery can be a big share of sales. Buyers look at what those orders really earn after fees, since a busy app channel can carry thin margins.
The Owner in the Kitchen
Many pizzerias depend on an owner who makes the dough, runs the line and knows every regular. A buyer worries about what happens when you leave.
- A kitchen manager who can run a shift
- Written recipes and prep routines
- Staff who have stayed more than a year or two
Those three things make a pizzeria easier to sell and easier to finance.
A Liquor License Changes the Deal
If you serve beer and wine or liquor, the license is part of what the buyer is paying for.
In Michigan, a license can transfer to a buyer, but the state Liquor Control Commission has to approve it first. Our guide to liquor license transfers explains the steps.
Health permits and city business licenses are separate. The buyer usually applies for its own, and an inspection may come before the doors reopen under new ownership.
What It Could Bring
Most pizzerias sell as asset sales priced on owner cash flow. Equipment, the name and the recipes go with the business. Read what buyers check in due diligence to get your records ready.
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