Restaurants for Sale in Dallas

Occasionally I peruse real estate websites to find restaurants for sale. This morning I found lots of juicy deals.

Contemporary Indian Restaurant located in far North Dallas. Partnership break-up forces sale.  $395,000

Sports Bar with award-winning pizza. $875,000

Classy nightclub downtown. $4,500,000

Big lime green building on Northwest Highway. $1,200,000

Popular bar on Greenville Ave.  $250,000

Two Tex-Mex restaurants with “all kinds of synergies.”  $729,000

Sports bar with Asian Cuisine located in “the hub of where is called restaurant capital” $295,000

16 comments on “Restaurants for Sale in Dallas

  1. Let’s speculate!

    Indian – Roti Grill? I think it’s (just barely) in Richardson though, not Far North Dallas.

    Sports bar w/ pizza – Tough one. I wouldn’t exactly consider BST or Louie’s as sports bars. Open space, great patio, near downtown…I’ll guess either Frankie’s or Knox Street Pub.

    Greenville Ave. bar – I honestly can’t think of a place that was started up in 2008 and is a “hot spot” on Greenville. Must be one of the crap bars on Lowest.

  2. Plush (1400 Main) described as a “classy nightclub” is hilarious. I didn’t know real estate listings were so funny.

  3. I’m chewing on the math of paying off a $4.5 million dollar purchase price on the downtown club, especially when their TABC numbers indicate they were doing $2 million (or less) a year in total liquor sales?

    Let’s say the new owners put 10% on the bottom line (if they make a profit at all in this economy and being downtown) with sales at $2,000,000 – that’s a 25 year note payment – probably longer than the terms of the lease. Even at 20% profits, you’re looking at over 12 years of all your income going towards paying off the note.

    Investors in the new club however would want to be paid back entirely within 2 years in a risky venture like this one. So why would anyone provide the capital for purchase?

    Good luck on that one.

  4. All kinds of synergies? Sounds like more of that molecular gastronomy BS.

  5. Scagnetti, I think you’re right.

    I couldn’t get the Indian restaurant’s ad to come up, but my first thought was Clay Pit.

  6. Indian restaurant has to be India West. Sports bar with pizza? Maybe Brackets is already out (and still referencing Il Cane Russo pizza).

  7. Bryan Street for sure, they have a DT from July 2010 of $417,000 which is assumable. You can search for it at ROAM dallas.

    Nancy or Amy S. – what is the standard valuation for a restaurant 3 x pre tax profits?

  8. There are so many factors that go into the valuation of a restaurant. How long has it been in business? How many years are left on the lease? Is it an “owner recognized” place (which can be a challenge to continue when the “owner” is no longer present)? It can go as high as 7 x earnings for a well-established “favorite” place with good margins and a long lease period in it’s future. If it hasn’t been open past it’s 3 year anniversary it may only be worth the marked down priced of the furniture, fixtures and equipment.

    You can put whatever price you want on the sign, but unless there’s a buyer it really won’t matter. There is much empty, available restaurant space with landlords willing to throw in rent concessions – if there are any in the same neighborhood a buyer might find the lower costs more appealing. Our restaurant site was empty for two years after Loma Luna closed. We purchased all the kitchen equipment (walk ins, grills, mixers, refrigerator units, stoves) for the amount of the property taxes owed on it by the landlord – less than $8,000.

    Then there’s capital – who is going to put up the money? If the buyer is independently wealthy, skip this. But most purchases will require a loan or investment, and right now, banks are not lending to restaurants. Period. And capital investors want a payback in a very short amount of time – and ownership control, so the seller may have to be ready to “hold the note” on the business sale. This adds another risk element as you are basically handing over your “baby” to strangers to either succeed or fail. And if they really fail, you lose the business and the balance of the note. Sometimes sellers find it more desirable to mark down the price rather than to have to hold a note on the entire balance.

  9. @kindofabigdeal – “All kind of synergies” is restaurant codespeak for “twice as much work”.

  10. Anyone care to explain how this business listed on Fred Venners’ site is legal? I thought Plano laws required liquor to be less than 50% of gross.

    Bar/Grill-Very Profitable!

    Great Bar & Grill.!!! Located North West Area of Plano, 85% Liquor, Beer, 15% Food. Great Volume: $1,800,000.+ sales. Established 3 years in November of this year. THREE IN ONE: Neigborhood Bar, Sports Bar, Night Club. Great Books! Cash flow of $355,000+/- for owner/operator (includes owner’s salary). For more information, please call: Fred Venners 972-867-0039. For other listings visit our web site: www. fredvenners.com

  11. Even within a city there can be different zoning for different licenses, each license has differing ratios of liquor to sales. The laws change over the county lines too (Plano straddles two), there may be some difference if it is located in Denton County instead of Collin County.