Most NJ Businesses Suffered During Covid, but Delaney Restaurant Realty Increased Market Share. DRR’s Covid Transactions included 24 closed Deals in 19 New Jersey Towns. 

Out of all commercial real estate sales in NJ, the niche of restaurant real estate sales only holds 1.32% of the multimillion-dollar market. We are very proud and humbled with our growth throughout the pandemic. Delaney sales increased 54.02% from 2020 to 2021, and 75.98% from 2021 to 2022. Although two years removed from the start of the pandemic, last year still came with extraordinary challenges for the industry. Owners faced hard times through increased labor shortages, high interest rates, shipping delays, recession scares, and inflation pressures. These market conditions favored buyers, leaving sellers frantic to avoid these challenges.

Who Were the Covid Sellers?

1. A large percentage of our sellers were of the baby boomer generation. From the Great Recession, to Covid, and now the impending recession, their tolerance for dealing with any extraordinary future challenges has disappeared. Physically and emotionally many baby boomers wished to end their frustrations, resulting in selling their businesses. 
2. A portion of our sellers didn’t have the necessary cash reserves to continue to fund the financial needs of their businesses. These Covid and post Covid survivors relied on grants and loans like the PPP, EIDL and ERTC. Many of those who didn’t receive these grants listed their locations for sale. We anticipate to see more of these sellers in 2023.
3. The creative “pivoters”. These sellers were successful in getting back to pre-pandemic numbers and wanted to ride the wave out on a high note. We were successful in selling their businesses at aggressive prices.  
4. The retirees. Some of our older owners had successful restaurant careers for years that were ready to retire. Another trend we expect to see in 2023. Like the pivoters, we were able to get them aggressive prices for their well-established businesses. 
5. Restaurant/bar owners that owned their real estate along with their business (in most cases) were in a strong position to sell. An estimated 90% of our sold Covid transactions included the real estate and the business. This opportunity has always been attractive to buyers. It allows them to control their occupancy costs and have an appreciating asset. 

Who Were the Covid Buyers? 

1. Experienced restaurant owners who have existing restaurants and were looking to expand their concepts. These strong buyers were looking for a quality purchase in difficult times.  
2. Some first-time buyers came from different industries. We typically partnered the inexperienced buyer with an experienced restaurateur to help capitalize the business.  
3. An employee of the seller’s business whose strengths were recognized by us and the seller.  
4. A couple multi-unit, multi-concept restaurant groups formally familiar with leasing. After consulting with DRR, these buyers chose to invest in the real estate for the added benefits of long-term success.

What Type of Businesses Sold During Covid? 

1. Most of our covid transactions included full-service restaurants with a liquor license. 
2. The businesses we sold with real estate were all free-standing buildings owned by the seller.
3. A couple of businesses with a large emphasis of their business being take-out and delivery. 
4. A 12-room hotel with a full-service restaurant and bar and speakeasy. 
5. A few catering operations which included multiple acres. 
6. A number of American bar/restaurants. 
7. A couple of Italian full-service restaurants. 
8. A few Irish Pubs.  

Completed Covid Transactions:

1. Cousin Vinny’s in Wood-Ridge – a 3,000 sqft restaurant and bar on a .25- acre piece of property with a quiet outdoor patio. 
2. Maria’s in Manasquan – a 4,500 sqft restaurant and bar on a ¼ acre lot. 
3. Firehouse Pizza in Madison – a 5,000 sqft restaurant with 2, 1-bedroom, 2-bathroom rental units above the restaurant. 
4. Michaelangelo in Boonton – a 6,000 sqft restaurant and bar on a 1-acre lot. 
5. Soriano’s Parkside in Bridgewater – a 6,000 sqft catering facility on 3 acres. 
6. Tierney’s Copperhouse in Fairfield – a 5,000 sqft restaurant and bar in Essex County. 
7. I Love Subs in Flanders – a 2,500 sqft restaurant on the ground floor with a 2-bedroom, 1-bathroom rental unit above on a 1-acre lot. 
8. Ariane Kitchen and Bar in Verona – a 3,500 sqft restaurant and bar on a  ½ acre property amongst a busy downtown retail area. 
9. Harper’s Table in Clinton – a 4,000 sqft restaurant and bar on 3 acres. 
10. American Spirits in Asbury – a 5,000 sqft indoor/outdoor entertainment venue on 6 acres. 
11. Venue 518 in Bound Brook – a 7,000 sqft restaurant and bar on a 3-acre lot.  
12. Gusto Grill in East Brunswick – a 5,000 sqft restaurant and bar on a 2-acre property. 
13. Thatcher McGhee’s in Fairfield – a 5,000 sqft Irish pub on a 1.5-acre lot. 
14. National Hotel in Frenchtown – a 12-room hotel, restaurant & bar built in 1700’s with a speakeasy bar in the basement. Including all sections, this building is 10,000 sqft and sits on a ½ acre lot.

Delaney Restaurant Realty Has Increased Sales during Some of the Hardest Financial Times NJ Has Seen in Over 30 Years. This is a Direct Result of Our Unique Marketing System and Experienced Team.

during covid DRR Closed 24 Deals in the Following 19 New Jersey Towns: Cedar Grove, Somerset, Whippany, Wood-Ridge, Andover, Boonton, Bridgewater, Fairfield (2), Flanders, Verona, Wayne, Annandale, Asbury, Bound Brook, East Brunswick, Frenchtown, Jersey City, Randolph, and Warren. 

Other Activities Which Helped influence covid transactions: 

1. We expanded the company. Our newest hire was Jennifer Bono from Bergen County, NJ. Jen brings over a decade of hospitality experience to her role as a restaurant industry professional and licensed foodservice real estate agent, working in every FOH position to back-office responsibilities.
2. The agency remains active in targeted monthly networking groups:
   • Metro Restaurant Experts, Current Association Member and Past President.
   • NJLBA, Current Association Member.
   • NJRHA, Current Association Member, Current Board of Directors, Past Chairman, Past President NJR Education Foundation.
3. Tim Delaney has participated as an expert witness, being hired by attorneys throughout the state to testify in depositions and in court on various legal matters ranging from partnership disputes to various operational issues. 
4. Each Delaney agent is an authorized business appraiser. On many occasions we even provided consulting services as we are considered experts in our industry.  
5. We continue to invest in our skillfully confidential and aggressive marketing/advertising through: 
   • Internet Marketing Activity – depending on our seller’s discresion, our listings appear on BizBuySell, Crexi, LoopNet, and Ten-X.  
   • Emails Campaigns – we send updated listings to over 4,500 buyers in our database. 
   • Social Media – we regularly post our listings and other industry information on LinkedIn (5,800+ followers) and Instagram (1,500+ followers). 

We are Now celebrating our 27th year! Delaney Restaurant Realty has a successful track record helping over 2,000 clients in completing over 500 Business and Real Estate transactions, including: Selling/leasing over 300 restaurant/bars/nightclubs/catering facilities, Brokering over dozens of related commercial buildings, Leasing over 250,000 square feet of commercial space, and Completing hundreds of related business valuations. The majority of our staff have worked in, managed, or owned restaurants and/Or related businesses throughout their careers. Our Broker of Record himself started as a multi-unit/multi-concept owner operator. This deep experience and passion for the industry means our team understands your business and personal stress of buying and selling from having been there. 

Jennifer

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