Who are the Buyers and Sellers for Restaurant, Bar and other Related Food and Beverage Businesses in 2026

The buyer and seller activity at Restaurant Realty is noticeably more active the first quarter of 2026 versus the first quarter of 2025 for some of the reasons indicated below.

Buyer Activity in 2026

Smart buyers can position themselves to capitalize on purchasing second, third, fourth, etc. generation restaurants for a small fraction of building out a new built to suit restaurant.  In some cases, experienced buyers can negotiate better lease terms and conditions than the former tenant. Buyers are looking for locations with strong demographics and discretionary income that are in areas that are built out to minimize new head on competition coming into the immediate trade area.  They want minimally a five to ten year base term with multiple options with rent adjustments based on a fixed percentage and/or dollar amount rather than to be subject to fair market value adjustments to minimize getting priced out of the market.  In some cases, landlords will negotiate making a contribution to tenants’ improvements and/or free rent during the buyers remodeling period if applicable.

The reasons why buyers are buying restaurants, bars and other related food and beverage businesses at this time are indicated below.

1. They have an existing successful concept, and they want to expand it to additional locations.
2. Some buyers in other industries have been laid off due to their jobs being replaced by technology and in some cases specifically artificial intelligence (AI).  Although in some cases these buyers have no food and beverage experience they frequently partner with an associate that does have food and beverage experience so they can operate and adapt to the challenges of successfully operating a restaurant, bar or other related food and beverage related business.
3. A family member that wants to buy out an aging relative who is running the business.
4. Former restaurant employees that want to be their own boss and control their future destiny and not have their future dictated by someone else.
5. Some buyers realize that due to the extraordinary economic challenges in today’s market they can make a purchase on a discounted basis versus during a more stable economic period .

Seller Activity in 2026

This year like most of last year it is a buyers’ market meaning that generally buyers have an economic advantage in negotiations with the seller.  This is largely a result of many sellers hurting financially due to increased operating costs such as food, labor, utilities, insurance and rent increases.   Due to consumers having a decrease in disposable income in many areas in California food and beverage owners can’t raise their menu prices dollar for dollar against increased costs. This results in the operators profit margins being reduced and in some cases being eliminated. In some cases, sellers accumulated so much debt from taking out low interest loans during and immediately after Covid resulting in their debt being greater than the value of their business and therefore being unable to sell their business at this time.

The reasons why sellers are selling restaurants, bar and other related food and beverages businesses at this time.  

1. Many operators are finding it difficult to make a profit and in some cases are struggling just to break even.
2. Many operators who have been profitable in the past are finding now that they are losing money and need to get out before they go out of business.
3. Many baby boomers can’t physically or emotionally deal with the demands of the business and have no family members to succeed them and need to get out of the business as they want to retire.
4. There are partnership disputes between owners who can’t resolve their disputes and/or married couples getting divorced and can’t agree on buying each other out and therefore decide to sell to a third party.
5. Some sellers are relocating out of the state as they feel it is too expensive to live in California or they have relatives living in other states they want to be physically near to.
6. Some sellers have unreasonable landlords who won’t work with them and keep raising their rent and other occupancy costs making it difficult to be profitable.  In some cases these operators will sell their business and find another location with a more reasonable landlord.

Restaurant Realty Company has sold more restaurants, bars and other related food and beverage businesses in California in the past three decades than anyone.  If you are a seller and would like a valuation of your business, please contact us per the information below.

If you are a buyer and not receiving our weekly e-newsletter which includes our new, featured and price reduced listings you can subscribe for free by clicking on the following link E Newsletter Registration – Restaurant Realty

For further information, please contact Principal Broker Steve Zimmerman at steve@restaurantrealty.com or call 888-995-9701.

Now celebrating our upcoming 30th year, Restaurant Realty Company® has a successful track record helping over 3,400 clients in completing over $1,000,000,000 (billion) of Business and Real Estate Transactions including the following: Selling/leasing over 1,700 restaurant, bar and/or nightclub businesses, selling over 80 related commercial buildings, Leasing over 3.5 million square feet of commercial space and completing over 8,000 valuations. Most of our staff have either owned and/or managed restaurants. Our deep experience as operators means we understand your business from the inside out.  Restaurant Realty has Closed Escrow and/or Leased 500+ Deals since 2020!