Britain is the home of fish and chips. As an island nation, our love of freshly caught fish, simply cooked, is enduring – which is why, wherever you live, you’ll find you’re never too far from a fish and chip shop. There are around 10,500 fish and chip shops in the country – according to the– more than any other fast food brand, with British consumers eating 167 million portions each year.
There’s always a market for a successful fish and chip shop, as people looking for a profitable, owner-run business favour an established proposition with a regular customer base and a solid trading history that can be easily transferred to a new operator. But how can you make sure you sell your business quickly and for the best possible price?
Make your proposition clear
Buyers will want to know whether the business operates from freehold or leasehold premises. A freehold business will represent a higher investment for any buyer, especially as they’ll have to factor in the cost of any repairs or maintenance, so it makes sense to bring your premises up to scratch before you market for sale. While a leasehold sale will broaden your pool of buyers, you’ll need to ensure you have permission from the landlord to transfer the lease. Serious buyers will perform due diligence on this aspect of the sale, so be prepared.
The cost of raw ingredients has risen in recent years, but there’s still a decent profit to be had on a portion of fish and chips. A buyer will want to understand exactly how much profit you make, so spend some time assembling your accounts for the last three to five years to show how income stacks up against outgoings. Average gross profits for the fish and chip industry are around 50 percent – it’s worth seeing where your business fits into this profile and if there are areas where you could cut costs or increase margins. It’s rarely a good idea to cut quality, though, as it’s a sure-fire way of losing customers.
Offer a ready-to-go operation
Make sure your equipment is clean, safe and well maintained. Buyers are usually prepared to pay more for bright, attractive and welcoming premises that don’t require any immediate attention. They’ll also be looking to see if your certifications are up to date and that you have a clean bill of health from the local authority. Remember that if you have five or more employees, you must have a written health and safety policy detailing procedures. No buyer will be interested in buying a fish and chip shop with a history of hygiene violations.
Get your branding right
Buyers will be attracted by a well-thought-out brand that is easy to market. This doesn’t mean you have to change your shop’s name or product range, but it does mean making the most of the way your shop looks and the values it projects. If you feel the outside of your shop looks a bit tired, consider investing a small amount in tidying it up with new signage and a lick of paint. A scruffy exterior will make buyers wonder what horrors may lurk inside. A simple website is inexpensive to create and will ensure prospective buyers can find you online.
Whether you instruct and agent or decide to sell your business the easy way with Bizdaq, if you get your paperwork in order, spruce up your image and continue serving customers with the best fish and chips in the area, you’ll be able to take your pick of buyers!
Posted on December 13, 2018 | how to sell a business, fish and chip shop, selling