What should I check before buying a hot pot restaurant?
Check the condition of the tabletop burners and their fuel or power supply, who owns the broth recipes and whether they can be passed on, how all-you-can-eat and à la carte service is managed against waste, and how much daily prep and which specialty suppliers keep the tables served.
A hot pot restaurant runs differently from most dining rooms. Guests cook at the table, so the equipment sits in front of every customer, and the broth is the heart of the menu. A buyer is taking on tables that double as stoves, a prep kitchen that works hard before opening, and recipes that may live in one person’s head. Here is what to look at.
Tabletop burners and the dining room
Walk the room and test the burners at every table. Find out their age, their service history, what they run on and who replaces a failed unit. Look at the ventilation, because steam and heat build up with every table cooking. Ask to see inspection and service records for the burners, and have a qualified tradesperson look at the gas or electrical connections if you have any doubt.
Broth bases and recipes
Ask who makes the bases, whether they are made in house or bought from a supplier, and whether the recipes are written down. If a chef or the owner holds them, ask how they will be passed to you and whether that person will stay on for a handover. Our page on whether recipes come with a restaurant explains what to put in the agreement.
All-you-can-eat or à la carte
Some hot pot restaurants charge a set amount per guest, others sell ingredients by the plate, and many do both. Ask which model the restaurant uses and how waste is tracked, since food left on the table costs the kitchen. Compare ingredient purchases with the number of guests served over several months, and ask how the menu changes when a favourite ingredient becomes hard to find.
Prep volume and suppliers
The dining room looks simple, but the kitchen slices, portions and plates a great deal each day. Ask how many people it takes, what time they start, and how well the team could run without the current owner. Meet the specialty suppliers for thinly sliced meats, seafood, noodles and sauces, and ask whether supply terms carry over to a new owner.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Restaurants CanadaIndustryRestaurants Canada - The Voice of Foodservice
- 02Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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