What should I check before buying a Filipino restaurant?

A Filipino restaurant can be a steam-table counter, a sit-down room or part of a store with a kitchen. Each has its own routines, so start by understanding how this one actually earns its sales and who does the work. The checks below are a starting list for your lawyer and accountant to build on, not a full due diligence plan.

Service style and catering

Steam-table service depends on daily volume and food waste; a sit-down room depends on tables and staff. Ask how each kind is run. Party trays such as lechon and pancit can be a separate revenue line, so ask for the order history, repeat clients and deposits, and check they show in the books.

Who cooks and who stays

Family-run kitchens often rest on a few cooks. Ask who makes which dishes, whether recipes are written down and whether those people will stay after a sale. See whether recipes come with the restaurant. A handover period can be written into the agreement.

Suppliers and attached stock

Imported ingredients may come from a small number of suppliers. Ask who they are, how long the relationships have run and whether they will deal with a new owner. If a grocery or bakery comes with the kitchen, ask how stock is counted and whether it is included in the sale. A similar review applies in the Caribbean restaurant checklist.

Lease, equipment and books

• Lease term, renewal and the landlord’s consent to an assignment.
• Equipment age, repairs and ownership, including leased items.
• Bank deposits and point-of-sale reports against reported sales.
• Cash sales, and how they are recorded.