Should I sell my restaurant as a going concern or just sell the equipment?

Some owners decide to close and sell the equipment because it feels quicker and cleaner. Others find a buyer who wants the restaurant as it runs today. The two paths leave you with different obligations afterward, so look at the lease, the staff and the equipment before you decide which one to pursue.

What a going-concern sale includes

A going-concern sale hands the buyer a restaurant that is still open, with its name, menu, team, regulars, equipment and lease named in the sale terms. You keep the doors open until closing, so buyers can see the restaurant trading. The cost is a longer process, with buyers examining your records and the landlord reviewing the new tenant.

What an equipment sale leaves behind

When you close and sell equipment, the regulars and staff disperse and the buyer gets used machines rather than a business. The lease may still bind you, and the landlord may expect the space returned in a certain condition. Ask your lawyer what the lease says about ending early and about improvements you built into the space. Check whether any equipment is leased or has a lender’s claim on it.

How to choose

Ask a few buyers or a broker whether a trading restaurant would draw interest. Check how much time the lease has left and whether the landlord would accept a new tenant. Your accountant can explain how each route affects your tax position. See our page on selling a business quickly for how timing changes your options.