The Costa del Sol offers a large international hospitality market, but restaurant performance varies sharply by location, season and concept. Taking over an existing venue can save time, yet it also means inheriting a physical layout, commercial history and contractual framework. Every element should be tested before the price is agreed.
Location must fit the concept
A seafront tourist venue, residential neighbourhood restaurant and destination dining concept each require different opening hours, pricing and staffing. Measure passing traffic, visibility, terrace quality, parking, delivery access and nearby competition. Visit during both busy and quiet trading periods.
Study revenue quality and seasonality
Review monthly sales, covers, average spend, gross margin and payroll. Compare figures with tax filings, bank receipts, till reports and purchasing. Identify how much profit depends on summer, events, delivery platforms or the current owner’s personal presence.
Confirm the operational permissions
Check the registered activity, capacity, terrace licence, extraction, opening hours, accessibility, fire safety and any music permission. A restaurant can appear fully operational while some areas or activities are not correctly authorised. Independent local verification is essential.
Review lease, staff and contracts
The lease should provide sufficient duration and clear transfer conditions at a sustainable rent. Review employee contracts, seniority and accrued obligations, as well as equipment leases, utilities, reservation systems and supplier commitments. Establish what continues and what must be replaced.
Agree the correct deal structure
Clarify whether you are buying assets, accepting a traspaso or acquiring shares in a company. Record inventory, deposits, licences, digital assets, stock and handover support. Conditions should cover satisfactory due diligence, landlord consent, financing where relevant and the absence of undisclosed liabilities.
- Test the concept against the exact location and seasonality.
- Verify sales and profit using independent records.
- Check all licences and terrace rights.
- Review the lease, employees and ongoing contracts.
- Use a conditional written offer and detailed inventory.
