John Hayes speaks with Robin Gagnon, the co-founder and CEO of We Sell Restaurants, about the intricacies of buying and selling restaurant businesses. Gagnon explains that sellers often exit the business due to retirement, or because a restaurant needs a turnaround despite having a good concept and location. This is often due to costs associated with sales, food, labor, and lease. She also discusses how the demand for reselling changes based on trends, such as the popularity of pizza during COVID and the current interest in chicken, and the life cycles of brands. Gagnon emphasizes the importance of differentiation in saturated markets. She also cautions against "licensing" deals that may unintentionally violate franchise rules, and encourages education and legal counsel. For potential buyers, Gagnon stresses the importance of backward-looking financial analysis, using benchmarking tools for food and occupancy costs, and avoiding common mistakes such as relying on AI for legal work or making purchases based on emotion. She then provides insight into We Sell Restaurants' niche focus, slow franchise growth, transaction volumes, and the increasing trend of resales due to rising new build-out costs. This makes second-time buyers more advantaged, with key criteria being sales over $1M and occupancy costs near $100K.

- With Robin Gagnon.

TIMESTAMPS:

02:00 Bobby Flay Made Restaurants Sexy.

03:55 The Silver Tsunami Is Flooding Inventory.

05:15 One-Third Of Sellers Are Turnaround Opportunities.

08:00 Pennies Prove Restaurant Profit Margins Are Tiny.

09:05 Franchise Buying Power Beats Inflation.

10:20 Food Trends Are Cyclical—Pizza Peaks, Yogurt Fades.

11:30 A Billion-Dollar Brand Sale Lifts All Boats.

15:55 Differentiation Is The Only Pizza Defense.

18:30 Successful Operators Don't Know How To Franchise.

22:50 ChatGPT Is The #1 Buyer Mistake.

24:20 You Don't Have To Love The Food To Buy It.

25:35 Niche Discipline Beat The Generalist Brokers.

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