Fixed cost variables that would directly affect the purchase decision of restaurant can be rent of the building, Property tax, Employee Salaries, Depreciation and utilities cost (Alvis, n.d.). These are important fixed costs that do no fluctuate with the changes in the quantity of output. It is possible that these fixed costs may not remain fixing on the permanent basis over a period of time; they may change with the production quantity for some relevant period.
Among these variables if we consider rent, then with the increase and decrease of the sales in a restaurant, it will have no effect on the rent of that building; it will remain same and the owners must have to pay it. A business can never run successfully without the efforts and contribution of workers, so the owners must have to pay the wages of the hired employees like managers to run a restaurant in an effective manner, no matter they are earning profits or not.
Depreciation is also a fixed cost, as the value of assets decrease with the passage of time. The assets that may depreciate are furniture, office equipment, building etc. While purchasing a restaurant, it is very important to consider that what the condition of building and other assets in terms of depreciation is. As the business is already in loss and owners are not in a position to incur expenses on new furniture and other equipment that is important for running a business like stoves, dishwashers, grills.
Utilities cost are also fixed in a manner that it is mandatory to pay the bills of gas, electricity etc. every month irrespective of the profits. Although the bills may vary according to season but it comes under fixed cost because this expense is obligatory. The owner must also have to pay a property tax that is a charge on property. Its value is also fixed and compulsory to pay.