Costs of Taking Over a Restaurant or Bar Business in Thailand
Plan the seller payment, lease deposit, renovation, licences, staff, stock, opening expenses and working capital required for a takeover.
Quick answer: The advertised takeover price is only one part of the cost of taking over a restaurant or bar in Thailand. A buyer should prepare a complete funds schedule covering the seller payment, landlord payments, renovation, licences, professional fees, stock, staff, opening expenses and working capital.
1. Seller payment
Clarify whether the seller calls the amount key money, takeover price, asset price, goodwill or share price. The name does not determine what is included. Use a signed asset and rights schedule showing furniture, kitchen and bar equipment, stock, brand, online accounts, customer deposits and contracts.
2. Landlord payments
Budget for the security deposit, advance rent, first month’s rent and any landlord or transfer fee. Confirm whether the seller’s old deposit will be refunded to the seller or formally transferred. Do not pay for a lease position until the landlord confirms acceptable terms in writing.
3. Renovation and compliance
Allow for repairs, signage, extraction, electrical work, plumbing, grease traps, sound control, fire-safety equipment and any required building work. Confirm the intended activity is allowed at the premises before committing to non-refundable renovation expenditure.
4. Licences and professional costs
Costs may include company, accounting, legal, tax, food, alcohol, signage, music, entertainment and other applications depending on the business. Some permissions may need a new application rather than a simple transfer. Obtain current advice for the specific operator, premises and activities.
5. Staff and supplier commitments
Plan for recruitment, uniforms, training, payroll before opening, social-security registration and possible obligations connected with existing staff. Review deposits, minimum purchases, equipment loans and cancellation terms with beverage, gas, laundry, booking and delivery suppliers.
6. Stock and opening expenses
Agree how usable food, beverages and consumables will be counted and valued. Include menus, photography, marketing, point-of-sale setup, internet, cleaning, pest control, opening promotions and utility deposits.
7. Working capital
Keep enough cash for payroll, rent, suppliers, utilities, tax and repairs during a slower-than-expected opening period. The amount depends on fixed costs, credit terms, seasonality and the reliability of the sales forecast.
Illustrative budget structure
| Category | Examples |
|---|---|
| Acquisition | Seller payment, assets, stock |
| Premises | Deposit, advance rent, first rent, landlord fees |
| Setup | Repairs, fit-out, equipment replacement, signage |
| Compliance | Legal, accounting, company and licence work |
| Opening | Staff, training, suppliers, marketing, systems |
| Reserve | Working capital and contingency |
Official starting points
Check company records with the Department of Business Development, tax requirements with the Revenue Department, alcohol-related requirements with the Excise Department, and premises requirements with the responsible local authority.
Before paying a deposit, prepare a source-and-use-of-funds schedule and connect every payment to a document, condition and responsible recipient.