How is buying a winery different from buying a restaurant?

Behind the scenes they work very differently. A restaurant lives on today’s sales. A winery lives on what was grown, made and held in a cellar months or years earlier. If you are weighing the two, it helps to know where the risk sits in each.

Where the revenue comes from

A restaurant’s sales come from daily covers, so the statements show week-to-week patterns, and the lease and staffing sit near the centre. A winery sells through a tasting room, a wine club, restaurants and stores. Ask for sales split by channel, and ask how much comes from repeat members rather than one-time visitors.

Grapes, vintages and ageing stock

Grape supply is the winery’s raw material. Ask whether the winery grows its own fruit or buys it, and what the supply contracts say. Each vintage is its own batch, and some wine sits in barrels or bottles before it can be sold. Ask for an inventory list by vintage, and who verifies it. This guide on buying a winery goes deeper.

What the lease means in each case

A restaurant’s results can hinge on its lease terms and location. A winery may also depend on land, buildings and tanks that stay for years. Ask whether the land is owned or leased, and have your lawyer review what transfers. The lender will set its own terms for either purchase, so talk to them early.

• Grape supply: grown, bought or contracted, and for how long?
• Inventory: counted by vintage, and checked by someone independent?
• Channels: club, tasting room, wholesale and restaurant accounts.
• Property: owned, leased or shared with a grower.