A Full Service Inn –
Often buyers are concerned with the risk associated with purchasing a restaurant because of low profits, high staff turnover, and high food costs, and so on.
But when that restaurant business is supported by a strong lodging component, then the restaurant becomes less of a concern, and more of an amenity.
- Does the restaurant’s presence tend to fill rooms?
- Is the restaurant another reason to book?
- Is the restaurant’s ambience welcoming?
- Does the restaurant get much local business?
- Does the menu appeal to tourists and locals alike?
- Is the restaurant filling a need in the area?
- Is the restaurant a destination in and of itself?
- Is the restaurant an amenity allowing for increased room rates?
- Does the restaurant keep guests on the property, since they don’t have to go into town to dine?
Keeping guests on property could increase revenue: relaxing by the fireplace with wine and cheese, enjoying in-room spa services, a picnic lunch’ to go’ on the lawn, mid-day drinks around the firepit, a fruit and nut board while playing cornhole on the lawn, etc.
These become important points to consider when looking at an inn with a restaurant. The F&B (food and beverage) component can really enhance the overall business and provide a very nice supplemental revenue stream, particularly if it’s a manageable size that complements the lodging business. An ideal revenue split is Lodging in the 65% – 75% range, F&B/Restaurant 25% – 35%…just enough F&B to enhance the guest experience. With a much greater profit margin of the lodging side, this offers a nice balance.
Adding events to the business also enhances the bottom line, as profit margins are greater with events than F&B/Restaurant.
Another thing to consider is if the restaurant is chef owned (whereby once they sell, the chef is gone) or is there staff in place to run the kitchen?
In the case with The Bradley Inn and Restaurant, they have a very similar operation with rooms, events and restaurant/tavern.
And Chef Ross has expressed interest in remaining at The Bradley Inn. Ross and his wife, Carissa, got married at the inn and bought a house nearby. They are committed to both the inn and the area!
To view The Bradley Inn listing details: https://www.danamoos.com/the-bradley-inn
