You may have considered liquidating your business if you're a restaurant owner. This can be challenging yet it may be your best option in the long run. In this guide, we will discuss the process of restaurant liquidation and what to expect. We will provide tips on how to get the most out of your assets using a liquidation type sale!
1) What Is Restaurant Liquidation?
A restaurant liquidation is closing down a restaurant or bar due to personal, financial issues, bankruptcy, or other legal reasons. During this period, all assets inside the establishment are sold off at discounted prices to recoup some capital and close the business quickly. Items to sell can include:
a) Furniture: A restaurant liquidator Indiana and other states may buy all for one price and remove those pieces, or they will conduct an online auction.
b) Kitchen Equipment: All kitchen equipment, such as grills, ovens, fryers, hoods, and dishwashers, are sold off in an on-line liquidation type sale.
c) Venue Decor: Wall art, decorations, and other branding items such as light fixtures. window treatments may be sold during a restaurant liquidation.
d) Smallwares: Silverware, plates, glasses, and other small items are typically sold in sets or individually at often outstanding prices. Smalls can really drive the price of the sale up. These items are often hard to find, yet needed greatly.
e) Restaurant Supplies: Any excess supplies and inventory the restaurant has on hand can also be added to the liquidation sale. Trash cans, camera equipment, outdoor generators, rugs and even POS systems bring very good money in many situations.
2) Why Do Restaurant Liquidations Happen?
Restaurant liquidations typically occur when a business is no longer profitable, has become too costly to maintain, loses control of their building lease or the owners cannot pay back their debts and need to close the business quickly. In some cases, the owner may voluntarily liquidate to make a quick profit or dispose of inventory that may not be selling.
Other reasons for liquidation might be changes in the local economy, competition in the area, or even changing consumer preferences. Regardless of the reason, restaurant liquidations using on-line auction methods are an effective way to quickly close down operations and redistribute capital resources so they can be used elsewhere.
3) What Are the Different Types of Restaurant Liquidation?
When a business is closing, there are typically two types of liquidation sales: auction or online sale. Each type has its advantages and disadvantages, depending on the circumstances. If you have more time, offering the entire restaurant in one lot price can work as a method of marketing the assets for sale.
When you choose a restaurant liquidator in the Midwest, you can choose between an online auction or a flat price lot sale method. Online auctions can be an excellent way for restaurateurs to quickly and easily liquidate their assets with minimal stress and effort. Additionally, auctions allow potential buyers to get needed assets and at times, a good deal on items they may not have been able to purchase otherwise. The lack of ability to resource items in today's economy often brings the price of these needed items up.
Online lot sales are an excellent option for restaurants with an inventory of items to liquidate and don’t want the hassle of hosting an auction. Online sales provide more control over pricing and terms, allowing restaurateurs to maximize their return on investment. These methods can work to bring a stronger return than most would believe, and it is simply a convenience for someone who truly needs the items offered.
4) What Are the Benefits of Restaurant Liquidation?
Here are some reasons to consider a restaurant liquidation when closing down a business:
1) It allows you the chance to maximize your investment return by selling all your assets as quickly and efficiently as possible.
2) The process is often much faster than alternative methods, such as donating or selling items individually. This can be especially beneficial if you need to vacate the premises quickly.
3) It eliminates the need to store or rent a storage unit for remaining items while you wait for buyers.
4) Many liquidation services provide support and expertise to help you get the best return on your investment, such as helping with appraisals, marketing, and logistics.
5) It eliminates the need to arrange pick-up or delivery of individual items, as everything is sold at once.
6) Most liquidation companies can help facilitate the sale of commercial equipment and appliances, furniture, fixtures, and other supplies.
Cardinal Selling Services offer liquidation solutions for many types of business owners, and especially restaurant owners who are looking to close their establishment. By utilizing the services of an experienced liquidator, you can ensure that you get the highest return on your investment. This can save you time and money and provide peace of mind knowing that the liquidation process was handled correctly.
Since 2006 Cardinal Selling Services has worked in their region to bring business owners together at the time of start up and the time of closing out. Their email lists drive their business success.