What should I check before buying a Caribbean restaurant?
Check the jerk smoker or drum and where it is installed, any patty or roti side line sold wholesale or to caterers, who owns the family recipes and seasoning blends, how much of the trade is takeout, and which specialty importers supply the ingredients. Together these show what a new owner can actually keep running.
Caribbean restaurants often grow out of one family’s cooking, and the business may include more than the dining room: a smoker out back, a patty line, a catering side. A buyer needs to see all of it. Visit at lunch and at the dinner rush, order the signature dishes and ask which parts of the operation are separate sources of income.
The smoker, drum and where they sit
Jerk is often cooked in a smoker or drum, sometimes outdoors or in a shared yard. Ask where the equipment sits, who owns the space and whether the landlord has agreed to it in writing. Ask your lawyer to read the lease for how it treats cooking, smoke and outdoor equipment. Also ask about fuel storage, cleaning routines and what the equipment would cost to replace.
Patties, roti and other side lines
Some shops sell patties or roti to stores, caterers or events. Ask whether those customers have agreements, who prepares the goods and whether the work happens in the same kitchen. A side line can be a real source of income, or it can depend on one relationship. Find out which. Be clear on what is included in the sale and what the owner keeps.
Family recipes and seasoning blends
Ask who created the recipes and who holds them. If a seasoning blend belongs to the owner’s family, the buyer should know whether it is part of the sale, licensed or simply taught. Our page on whether recipes come with a restaurant explains what to ask. Try to cook the blends with the owner before you commit.
Takeout trade and specialty suppliers
Many Caribbean restaurants do most of their business at the counter or by phone. Compare takeout figures with the point-of-sale reports, and ask how orders are taken. Then ask about the importers who supply items like peppers, flour and specialty meats. See what to check before buying a takeout-only restaurant for the questions that apply to counter sales.
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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 CanadaGovernmentEquipment valuation: How to do it
- 03Business Development Bank of CanadaGovernment13 terms you need to understand before signing your commercial real estate lease
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