What should I check before buying a Mexican restaurant?

Mexican and taqueria concepts vary widely, from a counter with a few tacos to a full bar with a large menu. What you are buying depends on which kind it is. Start by working out what draws guests, then check whether the supply chain, the kitchen and the bar can support it under new ownership.

Tortillas, masa and specialty supplies

Ask whether tortillas are pressed in house or bought in, and from whom. A restaurant that makes its own masa needs equipment, space and a person who knows how to run it. A restaurant that buys in depends on a supplier who may or may not deal with you. Ask the same about dried chiles, cheeses and produce, and whether pricing and delivery are in writing.

The bar and the drink share of sales

In many Mexican restaurants, margaritas and other drinks are a large part of the business. Ask how the sales records separate food and drink, what the happy hour and event business looks like, and which licence arrangements apply to the premises. Your lawyer can explain what happens to a licence on a sale and what has to be approved.

Concept and the risk of changing it

Ask how the restaurant positions itself, whether as regional Mexican cooking or a Tex-Mex crowd pleaser. Guests who like one may react badly to the other. If you plan to change the menu, name or decor, read the reviews and talk to staff first. Ask which dishes sell most, and who has the skill to make them.

Questions to put to the seller

• Are tortillas made in house or bought in, and from whom?
• Which supplier terms are in writing, and will they carry over?
• How are food and drink sales recorded separately?
• Which dishes sell most, and who has the skill to make them?
• What would change if the concept or name changed?