What’s the deal with all the St. Louis restaurants currently up for sale? —Jeanne F., St. Louis
It’s a timely question. Over the span of about a month, the restaurant scene has seen a slew of noteworthy establishments go up for sale, many of which were successful for years—if not decades:
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- Spencer’s Grill: The cavalcade started with the closing of the Kirkwood landmark in late June. The restaurant is currently under contract.
- O’Connell’s Pub: The beloved St. Louis institution remains open, but it was put up for sale earlier. (Here is the contact if interested.)
- Pi Pizzeria: The pizzeria that former President Barack Obama once proclaimed his favorite closed its last remaining location, in the Central West End, in July. The business—including the recipes, furniture, and fixtures—is available. (Here is the contact if interested.)
- The Benevolent King: After overhauling the concept earlier this year, owner Ben Poremba closed the Maplewood restaurant and announced that it and the company commissary (located on Cherokee Street) are both for sale. (Here is the contact if interested.)
- Kohn’s Kosher Deli: The Creve Coeur deli closed and has a temporary tenant, Nate’s Kosher Deli, but the building, name, and trademarks are for sale for $1.7 million. (Here is the contact if interested.)
- The Scottish Arms: Ally Nisbet’s Scottish institution closed last weekend, after a nearly 20-year run. (Interested parties can contact [email protected].)
- Soulard’s Restaurant: It was previously leased but never sold, according to Ron Kramer of Kramer Commercial Realty.
- The Pat Connolly Tavern: The Dogtown institution is for sale or lease.
While there might be a menu of noteworthy options, is it a good time to get into the restaurant business, especially for a novice? Inexperience can often be a detriment, but it’s not necessarily a recipe for failure. Among the important aspects to consider:
- Do adequate research to ensure the concept is timely and appropriate.
- Appeal to neighborhood demographics. (Destination restaurants, for instance, can be problematic.)
- Be mindful of overspending—on décor, management, kitchen labor, etc.
- Negotiate a favorable lease and lease renewal. (Try to avoid high rent and high common area maintenance charges.)
- Sell food and beverage at competitive price points, while being able to turn a reasonable profit at that level.
- Be properly capitalized, and have a sizable safety cushion.
- Be wary of partnerships.
- Avoid minority percentage situations.
- Be mindful of liability insurance rates, which have recently skyrocketed in Missouri.
More information on the above can be found in this article.
There are a handful of local real estate agencies and management companies that specialize in restaurant sales and leases. Most of their listings are confidential and not made public. Interested parties may contact the following individuals. Collectively, they curate dozens of local restaurant and business listings:
- Ron or Mark Kramer, Kramer Commercial Realty
- Kevin Shapiro, Location Commercial Real Estate
- Ben Strake, Premier Business Brokers
- Scott Sturdevant, Rothschild St. Louis
- David Schlafly, Schlafly Corporation
- Brendan Hickham, St. Louis Group
“A lot of iconic restaurants are currently on the market,” says Kramer, “and there are more, similar listings pending. It’s an opportune time for the right person to get into the business.”
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