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Angel investors?


Does anyone think an angel investor will invest in a restaurant franchise such as an ihop or dennys, what do angel investors usually invest in?

Certainly, an angel investor might consider a restaurant deal. The issue is going to be the size of the deal and the return that you can offer.

Angels want to invest in deals that provide returns that are several times greater than they could get from traditional investments. A single deal to purchase a single franchised restaurant probably won't get a look. Where's the return? Of course, you're probably thinking that you'll work the heck out of that franchise and make it a whopping success. You probably could, but there still would not likely be enough there to attract an angel.

You might consider forming a holding company to purchase multiple franchises in certain high yield markets (the success of this pitch hinges on whether you or someone on your team has the expertise needed to successfully manage such a large operation).

You might also consider approaching the owner of a successful single location or small chain restaurant and partnering with him/her to franchise their operation. If the restaurant is a run-away success as a small operation, maybe you can convince an angel to invest in spreading the love.

Finally, you might consider getting a partner, not an investor.

Whatever you decide, keep in mind that the restaurant business is a tough sell anyway you slice it. Restaurants have a 57%-61% failure rate. And, they cost a bunch to get opened.

Bottomline: I don't think a single restaurant play is going to be very attractive to a professional investor. You might consider taking on a few partners or offering equity stakes to friends, family and associates in exchange for seed capital.

Don't get discouraged though. There are other avenues. Check out Bank of America's Restaurant Group at http://corp.bankofamerica.com/public/pro...
They offer some pretty good financial solutions for prospective and first-time restaurant owners.

Hope this helps,

Spring4th

goooood question I wished I had more info and an answer

Angel investors could invest, however they will not provide a lot of money. Expect about 50K at the most. Also, it is very tough finding an angel investor as they look at a lot of deals before choosing to invest. So you better have a very very good business plan and elavator pitch. However, don't give up - work on the idea, and try your best
Best of Luck !

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