Can I sell my restaurant while it is temporarily closed?
Yes, closed restaurants do change hands, but closed doors mean a buyer cannot see sales, staff or customers. Expect harder questions. Be ready to explain why you closed, show records from when you operated, and confirm that your lease, licences and insurance are still in good standing.
Buyers see a closed restaurant as a question mark. Say plainly why it closed, whether that was a renovation, an illness, a lease dispute or a slow stretch, and show what changed. Offer records from the time you traded, and be ready to explain any gap in the books. A clear, honest story helps more than a polished one that leaves holes.
Check the things that can lapse while you are shut. Ask your lawyer and your landlord about whether the lease still binds you and whether rent is accruing. Confirm that insurance, licences and approvals are valid, and that equipment has been looked after, because cold rooms, hoods and gas lines deteriorate when left. Keep the premises clean and the utilities on so a buyer can walk through.
Think about what a buyer is really getting. Without trading, they are buying a location, a kitchen and a name, and they will want to restart on their own terms. Be open to terms that reflect that, such as a longer review period. A buyer who can visit the closed site is easier to satisfy with the records you keep.
Key takeaways
- Prepare a straight explanation of why you closed and what has changed since.
- Confirm that the lease, insurance and approvals remain in good standing while closed.
- Keep equipment maintained and the premises ready so buyers can inspect everything.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- Expert answerHow do I transfer a food premises licence when buying a restaurant?
- Expert answerWhat changes when you buy a food court restaurant instead of a street-front one?
- Expert answerWhat should I check about the drive-thru before buying a fast food restaurant?
- GuideBuying a full-service restaurant in Canada
- GuideBuying a quick-service restaurant in Canada
Selling
- Expert answerHow do I sell a food court restaurant?
- Expert answerHow long can a receiver keep a liquor licence while selling a restaurant?
- Expert answerWhat happens when the franchisor inspects my fast food restaurant before a sale?
- GuideSelling a full-service restaurant in Canada
- GuideSelling a quick-service restaurant in Canada
- GuideSelling a restaurant in Canada
- Expert answerHow do I keep my kitchen staff calm while my restaurant is for sale?
- Expert answerHow do I explain a restaurant’s slow Tuesdays to buyers?
- Expert answerHow do I keep my event rental company’s phones answered while buyers visit?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernment13 terms you need to understand before signing your commercial real estate lease
- 03Business Development Bank of CanadaGovernmentWhat are financial statements?
- 04Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
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