Hello glad to answer your question
To determine that a restaurant's profitability is real, you can take the following steps:
1: Ask for financial data: Ask the owner to provide the restaurant's financial statements, including the monthly profit statement, balance sheet and cash flow statement. These data can help you understand how the restaurant is doing.
2: Review the financial data: scrutinize the financial data provided, checking the accuracy and consistency of revenues, expenses, costs, and profits. If you are not familiar with analyzing financial statements, seek the help of an accountant or financial expert.
3: Investigate the target market and competitors: Learn about the restaurant market situation and competitors in your area. Analyze the restaurant's position and competitive advantage in the target market to assess its long-term profitability.
4: Communicate with staff and customers: Communicate with the restaurant's staff and regular customers to learn about the restaurant's operations, reputation and customer base. Their opinions and feedback can provide additional information about the restaurant.
5: Get professional evaluation and consulting: Hire a professional evaluator to conduct an evaluation and due diligence on the restaurant. They can provide an objective assessment through detailed research and specialized knowledge.
These steps can help you get a fuller picture of a restaurant's profitability and business prospects. Keep in mind that adequate research and due diligence are critical before making a decision. Please be careful to complete these items to get a full understanding of the establishment before you start.