What should I check before buying a chicken restaurant?

Chicken restaurants cover a lot of ground: fried chicken counters, rotisserie shops, hot chicken places and wing bars. They share one feature, which is that a single ingredient drives the cost side of the business. The records can show a lot, if you know where to look. The checks below apply whichever style the shop serves.

Chicken costs in the records

Ask for supplier invoices going back several years and compare them with sales over the same months. Look at how the owner handled a stretch when the cost of chicken rose: did the menu change, did portions shrink, did margins fall? Ask which suppliers the shop uses and whether any terms are in writing. Your accountant can tell you what the numbers show.

Equipment

Fryers, pressure fryers, rotisserie ovens, warmers and the walk-in cooler carry much of the operation. Have a technician inspect them and ask for service records. Check the hood and exhaust, and find out which equipment is owned and which is leased. If the shop will need new equipment soon, factor that into your plan and your talks with the seller.

Delivery apps and the recipe

Many chicken shops sell through delivery apps, and the commission those platforms charge changes what a sale really earns. Ask what share of orders come through them and whether the app accounts transfer to you. Then ask who owns the recipe, the breading blend and the sauces, and whether the seller will teach them to you. See whether recipes come with a restaurant.

If it is a franchise

A franchised chicken location adds the franchisor’s approval, required suppliers and brand standards. Ask early what the franchisor needs from you and how long its approval takes.