The restaurant industry has one of the highest turnover rates in commercial business. As a result, the need for appraisals within this sector is considerable. Many factors will affect an appraisal of a restaurant and food services business. Here’s a shortlist of key factors: Purchase or lease terms of the facility; Conditions of its furniture, fixtures & equipment like cooking, refrigeration and fire suppression systems; Track record of earnings and sustainable sales; Location and desirability; Staffing considerations and terms of a Franchise agreement if applicable.
Refrigeration & Mechanical
In the area of food services, refrigeration and mechanical systems are crucial. Appraising the state of refrigeration and other mechanical equipment is a must. Refrigeration; chillers; boilers; pumps; ammonia systems; air flow and cooling towers are vital.
Every food processing operation is different. Appraisals in this industry require an understanding of the specialized machinery and equipment used. Some examples are: milk; grain & rice milling; wine making; nut and fruit processing; frozen foods; fresh greens; prepared foods; bakeries; dairies as well as food packaging and distribution equipment.