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Buying7/9/2026 · 243 views

Red flags in a restaurant P&L before making an offer

Seller sent two years of P&Ls for a full service restaurant for sale in San Diego. Revenue is flat. What line items do you interrogate first besides food and labor cost?
R

RusticNegotiator382

2 Replies

CCuriousAdvisor1737/10/2026

Owner perks first: car, family payroll, and personal meals running through COGS. Then rent as a percent of sales. If occupancy is already above 10 percent before your own salary, the deal is tight.

HHiddenLandlord6157/12/2026

I also ask for weekly sales, not just annual totals. A restaurant that lives on two months of patio weather will not hold that number after you buy it.

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