Netflix’s Selling Sunset has some competition… Over here in NJ, Delaney Restaurant Realty is Selling Happy Hour, one cocktail at a time. Instead of costly California coastal views, the Delaney team focuses on selling long term success in restaurants with real estate and liquor licenses throughout NJ. The restaurant scene can be just as glamorous as Sunset Drive. Whether it’s showing a restaurant at 8:00am before opening, or taking inventory at 4:00am after closing, we at Delaney do what it takes to keep our listings confidential. However, there are other factors that sellers are worried about during listing appointments. One of the biggest initial concerns is the 12-month listing agreement. A year does seem like such a long time. But it is necessary when you consider all the factors that go into Selling Happy Hour.

BizBuySell.com published an article recently stating, “The general rule is it takes six to twelve months to sell a business… Higher priced businesses will take longer to sell than lower priced businesses.” This proves even more true for NJ and specifically Delaney deals. Why? This report was based off restaurants/bars throughout the country at an average list rate of $380,000. (See chart below (bizbuysell.com))

At Delaney, we specialize in real estate deals involving restaurants which typically are $1,000,000 and above. On top of having a more niche target market, NJ also faces some of the most excessive real estate and liquor laws (see my other article, Analyzing NJ’s Real Estate Market!), making for a very litigious environment. So how does this relate to listing timelines?

We highly encourage our sellers to take a 12-month listing to allow enough time for the sale process. For example, a buyer can submit a Letter of Intent (LOI) on one of our available listings. Even if the sellers accept quickly, it can still take up to 8 months to close from this point. Sellers and buyers, their attorneys, buyers’ and seller’s spouses, lenders, town clerks, phase one environmental, appraisers, the fire department, the health department, plumbing and electrical departments, and wait, let’s talk about certificates of occupancy (CO’s) – I could go on. It’s very easy for things to go sideways with so many people involved in such a tedious and unique process. Delaney agents are hired because we make this messy part as easy as possible. We provide our buyers with a free education. We skillfully navigate this unparalleled system to help make buyer’s and seller’s dreams come true.

Considering selling your restaurant? Give me a call! I’d love to meet you for a consultation and learn if Delaney is the right fit for you.

Cheers 🥂

The Restaurant Realtor

Source: How Long Will It Take To Sell Your Business? (bizbuysell.com)