How to Choose the Right Broker When Selling Your Café
When it comes to selling your café, choosing the right broker is critical to ensuring a smooth and profitable transaction. But not all brokers are created equal. Some are genuinely focused on selling your business, while others prioritise building a large portfolio of listings without much effort in closing deals.
This post aims to help café owners understand the differences between brokers who actively sell and those who merely list businesses. We’ll also provide actionable tips for spotting reliable brokers who will work hard on your behalf.
Why the Right Broker Matters
Selling a café isn’t the same as selling other types of businesses. It requires knowledge of the hospitality industry, sharp negotiation skills, and proactive marketing strategies. A skilled broker can make all the difference in saving you time and maximising the value of your sale. Unfortunately, some brokers focus more on acquiring your listing fee than actually selling your café.
If you choose a broker who isn’t committed to the sales process, you could end up wasting months (or even years) without a serious buyer—and still be out of pocket for fees.
Are They Selling or Listing? Red Flags to Watch For
One of the most common traps sellers fall into is working with brokers who are more interested in building up their list of businesses than actually selling them. Here are a couple of red flags to watch for:
1. Excessive Active Listings
A broker can only dedicate so much time and effort to each listing. If they manage an overwhelming number of businesses (more than 10-15 active listings), it could indicate that they’re more focused on volume than quality.
Ask them directly about how many businesses they currently represent and how much time they can devote to your specific sale. The answer should give you some insight into their priorities.
2. Upfront Fees Without Follow-Through
Some brokers charge non-refundable upfront fees for listing a business but don’t follow through with earnest efforts to market it. While listing fees can be reasonable and necessary, be cautious if your broker seems to be pocketing the cash and not actively advertising your café, networking with buyers, or conducting effective follow-ups.
How to Identify Brokers Who ACTUALLY Sell
Not every broker is just “listing” or passing time. Experienced, results-driven brokers will demonstrate their commitment in the following ways:
1. A Proven Sales Record
Ask your potential broker how many hospitality businesses they’ve sold recently and in the last year. Specifically, inquire about cafés similar to yours. A proven track record in selling similar businesses is a strong indicator of their expertise and dedication.
Look for recent sales on their website and socials:
E.g. https://www.gsehospitalitybrokers.com.au/businesses-sold/
2. Industry Specialisation
Selling a hospitality business requires specialised knowledge of the industry. A broker with hospitality experience will understand unique challenges such as cash, COGS, lease agreements, vendor arrangements, and staff transition during the sale.
For instance, GSE Hospitality Brokers specialise exclusively in selling hospitality businesses. Our background in the industry allows us to focus on connecting café owners with the right buyers, ensuring smoother sales.
3. Transparent, Realistic Valuations
A trustworthy broker provides a fair and realistic valuation of your café based on financial performance, location, and current market conditions. Be wary of brokers who inflate the valuation just to win your business—or those who don’t provide you with detailed reasoning behind their numbers.
4. A Hands-On Approach
Does the broker offer a detailed sales plan? Do they proactively communicate with interested buyers and give you regular updates? Brokers who are serious about selling involve themselves in every part of the process, from preparing your business for sale to finalising contracts.
What Questions Should You Ask a Broker?
Before signing with a broker, make sure they’re the right fit by asking the following questions:
- How many active listings do you currently have?
- How many similar cafés have you sold in the last year?
- What is your marketing strategy to advertise my café?
- What is the average time it takes you to sell businesses like mine?
- How will you handle inquiries from potential buyers?
- How often can I expect updates on progress?
Their answers should give you valuable insight into their expertise, approach, and overall commitment to selling your café.
Why GSE Hospitality Brokers Are Different
At GSE Hospitality Brokers, we focus solely on the hospitality industry because we know cafés, restaurants, and bars inside-out. What sets us apart? It’s our hands-on approach to helping café owners sell their businesses efficiently and at the best possible price.
What We Offer:
- Expert Curation: With a limited number of listings at a time, we prioritise quality over quantity to deliver the best possible service.
- Tailored Marketing Plans: Our strategies target the right buyers, using comprehensive marketing efforts and extensive networks in the hospitality industry.
- Full Transparency: From realistic valuations to proactive communication, our process is designed to keep café owners informed every step of the way.
- Additional Support Services: Need help with your exit strategy? We offer tools and templates to streamline preparations and maximise your café’s value.
What Café Owners Say About Us:
Ensure Your Broker is the Right Choice
Selling your café is a significant milestone, and you deserve a broker who’s as invested in your success as you are. Working with someone who is committed to selling rather than just listing can streamline the process, reduce stress, and ensure you get the best return possible for your business.
If you’d like to work with brokers who specialise in hospitality and have a proven track record, consider booking a call with GSE Hospitality Brokers. Our small, dedicated team is ready to guide you through the sale of your café from start to finish.
Interested to learn more? Book an Appraisal Call Today https://calendly.com/paul-gse/appraisal_call
