Buying a restaurant based on unverified revenue figures is like navigating blindfolded through a minefield. Many sellers embellish their numbers or leave out costs, causing you to pay way too much. You need to know which documents to request and how to spot when the numbers don't add up.
Which documents should you request?
A serious seller shows transparency. Always ask for these documents from the last 3 years:
- Annual accounts - official figures at the Chamber of Commerce
- VAT returns - monthly revenue reporting
- Cash register reports - daily revenue per month
- Bank statements - actual cash flows
- Tax returns - what was actually earned
⚠️ Watch out:
Won't the seller show these? Then something's fishy. Don't proceed without complete financial transparency.
Check the revenue figures for consistency
Different sources should tell the same story. Verify that the numbers match:
- VAT return vs. cash register system - difference max 2-3%
- Bank statements vs. revenue figures - money must come in
- Seasonal patterns - logical peaks and valleys
- Weekly patterns - Friday/Saturday usually highest
💡 Example:
Restaurant claims €50,000 revenue per month:
- VAT return: €45,000 (9% VAT = €3,670)
- Cash register reports: €52,000
- Bank statements: €41,000
These numbers don't match - red flag!
Check the revenue per square meter
Every hospitality type has standard revenue figures per m². This helps you estimate whether the numbers are realistic from analyzing actual purchasing data across different restaurant types:
- Fine dining: €3,000-5,000 per m² per year
- Casual dining: €2,000-4,000 per m² per year
- Fast casual: €4,000-8,000 per m² per year
- Café/bistro: €1,500-3,000 per m² per year
💡 Example:
Bistro of 120 m² claims €600,000 annual revenue:
- €600,000 ÷ 120 m² = €5,000 per m²
- For a bistro this is on the high side
- Ask further: how do they achieve this?
Analyze profitability
Revenue means nothing without the costs. Check these ratios:
- Food cost: 28-35% of revenue
- Personnel costs: 25-35% of revenue
- Rent: 6-12% of revenue
- Net profit: 5-15% of revenue
⚠️ Watch out:
Many owners don't include their own salary as a cost. Always ask: "Is your salary included in this?"
Verify with external sources
Check the figures with independent sources:
- Call suppliers - how much does he order per week?
- Ask neighbors - how busy is it really?
- Online reviews - do people complain about wait times?
- Count visitors yourself - go check a few evenings
💡 Example verification:
Restaurant claims 150 covers on Saturday evening:
- Go check yourself: do you count 60 guests?
- 50 seats × 2 seatings = 100 max possible
- Claim of 150 is impossible
Red flags to watch for
These signals point to unreliable figures:
- Cash payments only - hard to verify
- No cash register system - how do they know the revenue then?
- Sudden revenue growth - from €30k to €60k in 1 year?
- Perfect months - every month exactly the same
- No seasonal dip - also full at Christmas and summer?
How do you verify revenue figures? (step by step)
Request complete financial documentation
Demand annual accounts, VAT returns, cash register reports and bank statements from the last 3 years. No documents means no deal.
Compare all sources with each other
Check whether VAT returns, cash register reports and bank statements tell the same story. Large differences are red flags.
Calculate revenue per square meter
Divide annual revenue by floor space and compare with industry standards. Much too high or low indicates incorrect figures.
Verify with external sources
Call suppliers, ask neighbors and count visitors yourself. Independent verification prevents costly mistakes.
Have an accountant take a look
An experienced accountant can tell within an hour whether the figures check out. That €500 could save you thousands.
✨ Pro tip
Cross-check the claimed daily covers against seat count and turnover rate over 14 consecutive days. A 40-seat restaurant claiming 120 covers nightly but only turning tables twice is mathematically impossible.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
What if the seller won't show VAT returns?
Then you walk away. VAT returns are official documents that prove actual revenue. Without transparency, no takeover.
How do I recognize forged cash register reports?
Watch for perfect figures, missing details and inconsistencies. Real reports have peaks, valleys and specific transaction data.
Can I call the restaurant's suppliers?
Yes, if the seller is serious he'll allow it. Suppliers can confirm how much is actually ordered and paid for.
What if the figures don't match but I still want to buy?
Renegotiate the price based on the actual figures. Or find another restaurant - there are plenty of honest sellers.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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