Should I sell my restaurant’s catering side separately?

Look at how the businesses overlap. Do catering orders use the restaurant’s kitchen, equipment, staff and suppliers? Do clients know you as one name? If the answer is yes to most of these, a split may mean both halves are weaker, and a buyer of the restaurant may expect the catering to come with it. Ask your accountant whether the books separate the two sides cleanly.

Then think about who would buy each part. A caterer might want the client list and the contracts but not the lease. A restaurant buyer might only want the dining room. Talk to a few likely buyers about what they want, and consider offering both as a package and as separate pieces so you can compare. A broker or adviser who knows the trade can help you test the interest without revealing your name.

If you do split, plan the details. Decide who keeps the kitchen time, the shared equipment and the phone number, and whether you will agree not to compete. Your lawyer should draw up contracts that cover both parts, and you should check that existing catering agreements can be assigned to someone else.

Key takeaways

• Check how much the catering uses the restaurant’s kitchen, staff and name.
• Ask likely buyers what they want before deciding on a package or two sales.
• Have your lawyer set out shared equipment, kitchen time and competition terms.