A restaurant partnership is a business arrangement where two or more individuals jointly own and operate a restaurant. This joint venture involves sharing responsibilities, resources, legal liabilities, profits, and losses incurred by the restaurant business. Each individual is responsible for paying taxes on the profits of the restaurant.
It is crucial to:
- Select the right partner
- Agree on the restaurant’s goals
- Outline each partner’s role
- Agree on ownership stakes
- Draft a written partnership agreement
- Have regular meetings
Local partnerships make for great marketing opportunities and help foster personal relationships that are resilient. Larger institutions can offer myriad benefits as well. The restaurant business is a team sport. The many players on a team have to be aligned and have each other’s backs.
Some restaurant owners build their business from the ground up in collaboration with a business partner, while others open their business alone, and then seek out a business partner later to sustainably grow the business.
It is quite common for family members and friends to venture into the restaurant business together. Buying and operating a restaurant can be much more successful in a partnership venture. Joining forces has its difficulties. It is important for both partners to agree on issues before jumping into a partnership.