On tonight's sneak-peek Food Network premiere episode of "Buy This Restaurant," a young woman is looking for a fresh start. Kelly suffered a tragic loss, when her husband was killed in an accident caused by a drunken driver. She is in need of a change of pace, and her sister Lisa is going to be with her all the way. The closest thing they ever got to opening a restaurant was a lemonade stand about thirty years ago. So they will need Keith’s help all the way.
They are looking for a cozy café, where they can sell soup, sandwiches and great coffee. With $300,000 to work with, Keith will show her three properties in Minneapolis, Minn. where she will choose one to start her business. As an expert in his field, he will give her the pros and cons of all three properties, so she can make the best decision.
The first property is the Cottagewood General Store, that has the support of the entire community. With an asking price of $100,000, it would make a great starter restaurant for Kelly and Lisa. The rent is $1,000 a month, and they will have ample working capital to ensure success. The general store does about $20,000 a month, but is only open from May to October. With a vision, Keith can help change that to a year-round operation. When they went inside, they met the seller, who was moving from the area after having the shop for nine years. Keith gave them a vision of how to renovate the place and still have enough working capital left over. With $25,000 for renovations, and a total one-year cost of $137,000, they will be left with $163,000.
The next stop was a confidential sale. Confidential because the seller did not want the workers or the customers to know the place was for sale. It was in a large office building in the heart of downtown. So they went in undercover to check it out. It was a turnkey operation asking $120,000 with a rent of $2,200 a month. When they went in, nobody was behind the counter, which immediately let them know not to hire that person if they bought the place. When the place closed, they had a chance to look in the kitchen and Keith estimated a renovation cost of $12,000, and an all-in cost of $158,400, with $141,600 of working capital left over.
The third place was an abandoned bakery that was owned by the bank. The owners left it three years ago. It is on a busy thoroughfare and with a price of only $49,900, which includes over an acre of property. Inside the place was very dirty, and was in dire need of renovating. When he explained why he brought them there, and using his tablet, drew pictures of what it could be like, they started to see why they were there. They were actually at the bakery when they were children, so they remember how it used to be. Right now, the women see a big mess, but Keith foresees them making a huge profit. As Keith explained how they could make this place work, he even told them they could most likely get the place cheaper than the asking price. The renovations would be about $200,000, leaving at least $50,000 for working capital. He projected they would return their investment in about 18 months.
So the women went home to sleep on their decision. When Keith met with them the next day, they decided to go with the bakery, which they got for $30,000, saving them even more money.
Keith advises viewers to check here to see how the cafe is doing since he brokered the deal. Subsequent episodes will air starting Wednesday, so if you liked what you read, please Subscribe, and you will never miss another post from this Television Examiner. Thanks!