Restaurant Purchase Guide
Business Acquisition Guide - Australia
This guide covers the essential due diligence, licensing requirements, and settlement considerations when purchasing a restaurant or hospitality business in Australia.
Purchasing a restaurant involves careful assessment of multiple factors including food safety compliance, liquor licensing, lease terms, equipment condition, and staff arrangements. The hospitality sector has specific regulatory requirements that must be satisfied for ongoing operation.
Key regulatory bodies include the relevant state health authority for food safety, state liquor licensing authority for liquor licensing, and local councils for development approvals and outdoor dining permits.
Key Points
- • Food business license must be transferred or new license obtained
- • Liquor license transfer requires separate approval process
- • Lease assignment is critical - review landlord consent requirements
- • Equipment valuation and condition reports recommended
Trading Name & Intellectual Property
- Business name registration transfer
- Trademark registration (if any)
- Domain names and social media accounts
- Website ownership and hosting
- Recipes and menu as intellectual property
- Logo and branding materials
- Customer database and mailing lists
Goodwill Considerations
- Basis of goodwill valuation
- Customer base and repeat business analysis
- Online reviews and reputation (Google, TripAdvisor)
- Vendor restraint of trade clause
- Non-compete and non-solicitation terms
- Transition support from vendor
Restraint of Trade
Ensure the vendor agrees to a reasonable restraint preventing them from opening a competing restaurant nearby. Typical restraints are 2-5 years within 5-10km radius.
Pre-Settlement Checklist
- Lease assignment executed by all parties
- Food business license application lodged
- Liquor license transfer application (if applicable)
- Staff transition arrangements confirmed
- Supplier accounts opened or transferred
- Insurance policies in place
- PPSR searches completed
- Final stock take date agreed
Settlement Day
- Final walkthrough and stock count
- Verification of equipment against inventory
- Handover of keys, codes, and access cards
- Collection of business records and documentation
- POS system and password handover
- Supplier and contractor introductions
- Staff meeting and introduction
Post-Settlement
- Update business registration details
- Transfer utility accounts
- Update food business license holder
- Complete liquor license transfer (interim authority)
- Notify customers of ownership change (if desired)
- Update online listings and social media