Key Takeaways
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Buyers assess verified earnings, weekly trading, wage costs and seasonality. Prepare several years of records where available, plus current figures.
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Lease length drives saleability. Buyers want term and options that outlast their payback period, and retail lease assignments need landlord consent.
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The price multiple rises with lease security and systems, and falls with owner dependence.
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Address food and liquor licensing requirements early so the buyer has the required authority before trading.
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Agree stock treatment, staff arrangements, training and any restraint in the contract.
Selling a cafe or restaurant involves preparing the financial records, lease and operating information a buyer needs. A planned campaign and handover help maintain trading while the sale progresses.
Gold Coast business brokers can help coordinate preparation and marketing alongside your accountant and solicitor. Begin early enough to resolve material issues before committing to sale terms.
Start With Clean Numbers
Prepare profit and loss statements, BAS, tax returns, bank statements and current management accounts. Include several years where available and explain any shorter trading history or changes in the business.
Ask your accountant to reconcile the books, bank records and point-of-sale reports, allowing for GST, timing and accounting differences. Buyers need evidence supporting the earnings presented.
Add-Backs and Normalised Profit
Explain the earnings measure used to price the business. Normalisation adjusts reported profit to a realistic ongoing basis, and adjustments can increase or reduce earnings. Review:
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Owner and family labour, including the market cost of work that is unpaid or underpaid.
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Personal expenses run through the business.
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Interest and depreciation where consistent with the earnings measure, without double counting.
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Genuine non-recurring expenses, distinguishing these from ongoing maintenance and capital spending.
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Rent paid to a related party at a non-market rate.
Support every adjustment with records. Below-market wages or rent may require a reduction in earnings; they are not automatic add-backs.
Weekly Takings
Cafe buyers think in weeks, not years. Expect questions on average weekly takings, the weekday and weekend split, and how far the quieter months drop against Gold Coast peak periods.
Wage and Food Costs
Buyers also check wages and cost of goods as a percentage of sales. Where your wage percentage runs high, be ready to explain why.
Secure Your Lease Position
Check the remaining lease term, options and assignment provisions. A short or uncertain lease can affect both buyer interest and finance.
Ask your solicitor to confirm landlord consent, disclosure documents and any legal or financial advice reports required for the assignment. Queensland retail lease rules include timing requirements and exceptions that need to be considered before sale documents are signed. Discuss any proposed extension with the landlord early.
Present a Business Worth Buying
Present the venue as a buyer would expect to operate it. Priorities include:
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Fit-out, with everything clean, repaired and compliant with council and fire requirements.
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Equipment, with service records and an itemised list of plant showing whether it is owned or leased.
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Menu, with current dishes costed and priced to today’s input costs.
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Reviews, with recent online reviews and any complaints answered.
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Staff, with a stable roster and up-to-date entitlement records.
Written procedures for opening, closing and ordering tell a buyer the venue runs without you.
Price It the Way Buyers Do
A valuation may consider sustainable earnings, assets, lease security and comparable sales. Confirm whether stock is included or payable separately, and explain the basis of any earnings multiple.
Set an asking price supported by the business and relevant sale evidence. An unrealistic price can discourage buyers and extend the campaign.
Before you set a figure, get a read on what comparable Gold Coast venues have actually sold for, not what they were listed at. A free business appraisal can give you that range and the add-backs a buyer is likely to accept.
Market It Confidentially
Agree a communication plan that protects confidential information while meeting employment and contractual obligations.
A campaign may begin with a non-identifying listing, followed by buyer qualification and a confidentiality agreement before detailed information is released. Arrange inspections through the broker and agree how staff and customers will be approached.
Some Gold Coast cafes and restaurants change hands off-market, matched directly to buyers already registered with a broker. That suits owners who want the sale done before the market knows it was for sale.
Licences and Compliance
Food and liquor licences follow separate paths on a sale:
Food Business Licence
Food business licences in Queensland are issued by the local council and do not transfer with the sale. The buyer applies for their own licence, timed to settlement so the venue never trades unlicensed. Have your current licence, last inspection report and food safety program ready.
Liquor Licence Transfer
A liquor licence transfer application must be addressed with the Office of Liquor and Gaming Regulation. Check current requirements and processing expectations early, and have your solicitor align the contract and settlement arrangements with the approvals needed. An interim authority may be relevant, but should not be assumed to apply automatically.
Many sellers have their solicitor and accountant review the licence, lease and tax treatment of the sale before contracts are exchanged.
From Offer to Settlement
Have your solicitor review an offer or heads of agreement before you sign. The contract should address the deposit, due diligence, finance where relevant, lease, licences and settlement requirements. Set dates around the actual approvals needed.
Confirm employee arrangements and any required consultation, notice or entitlement treatment with your advisers. Have your solicitor assess any restraint and record agreed handover obligations.
Stock at Valuation
Saleable stock is normally paid for on top of the purchase price, counted at cost on settlement day. Agree the method in the contract, including who counts, what is saleable and whether there is a cap. Run stock down to sensible levels in the final week.
Training and Handover
Agree a practical training period, including supplier introductions, operating procedures, rosters and system access. Specify who provides training, when it occurs and whether any support continues after settlement.
Maintain normal trading and service standards through the campaign and handover. Discuss any material change in performance with your advisers.
Plan the Handover
A clear contract and handover plan help both parties understand their responsibilities. Keep the financial records, staffing arrangements and approvals current as the sale progresses.
Thinking of selling your cafe or restaurant? The team at Bond Business Brokers can give you a realistic view of what the venue could achieve today.
Common Questions
When should I tell staff about the sale?
Plan the timing with your advisers. Confidentiality matters, but consultation, notice obligations and the role of key staff may require communication before the contract becomes unconditional.
Is stock included in the price?
Check the agreed terms. If stock is payable separately, record the valuation method, saleable items, any cap and the stocktake arrangements.
Can a loss-making cafe still be sold?
A buyer may value the lease, equipment, location or an opportunity to improve operations. The achievable price depends on the assets, obligations and available buyer interest, so obtain an appraisal before deciding.
This article provides general information only. Obtain advice from appropriately qualified advisers about your circumstances before entering into a transaction or relying on tax, legal or regulatory information.