On today's Food Network episode of "Buy This Restaurant," expert restaurant broker, Keith Simpson came to Indianapolis to help Keith and Raquel revert from a home catering business to a full-fledged restaurant.
From being friends in high school, this couple has been married for ten years. Keith is a chef and very successful in the catering business they operate from their basement. When Keith saw their basement, he was amazed at how professional it was, and will try to find them something comparable for their restaurant.
After starting a family, and Raquel returning to school, his dream was on hold. Now it is his turn as they start a new chapter in their lives. His concept is an American Bistro, but more healthier with fewer fried items.
With a budget of $250,000, they are looking for something that will continue to accommodate his catering business as well as the restaurant clientele.
The first location of the three was a quaint location in Noblesville, about forty minutes from Indianapolis, but it is the town where they live. The building was immense and with no business to purchase, they only had to pay rent. The place was originally a car showroom, but then became a restaurant for the last fifteen years. With monthly rent of $4,500 a month, it includes utilities. The bonus of an upstairs allowed for catering for about fifty people or more. There was no kitchen equipment, because it was not up to code and the owner was forced to tear it out. When Keith showed them the projected restaurant after renovations, and cost of about $170,000, they were left with $80,000 for start up and working capital and rent. Keith expects them to recoup their investment in 12-18 months.
The second place was a turnkey restaurant in Castleton. The prior Mexican grill was closed down, so there is no need to buy the business. The free standing restaurant has several businesses in the area with a monument sign for advertising, and it is on a busy road. With a high rent of $7,000, all fixtures and the liquor license was included. The kitchen was gigantic, and the proposed design was lovely. Keith gave them an estimate of the renovations to be $50,000, leaving them with $200,000 for startup, rend and working capital.
The third one was about six blocks from downtown Indianapolis. It was a wild card, because the business and the real estate are included in the price. It is currently operating as an Italian restaurant, they would have to buy the business as well as the building. The building is 5,000 total square footage, and the price is $325,000. Keith told them they could put a down payment and borrow the rest from the bank, giving them a long-term loan, rather than rent. If they get an SBA (Small Business Administration) loan, they typically would put 20% down or $66,000 with ten years to repay. It would need updating, and Keith’s proposal gave them much hope for the least desirable location. For about $100,000 in renovations and a return on investment of between 20-24 months, it does have potential.
The next day, the couple immediately eliminated the third location. So between the first and second locations, they chose the first location, close to their home in Noblesville. The new location will be called The Ville Restaurant and plans are to open in June of 2014. Best of luck!
Keith advises viewers to check here to see how the restaurant is doing since he brokered the deal. If you liked what you read, please Subscribe, and you will never miss another post from this Television Examiner. Thanks!