Restaurant Real Estate Advisors
helps you open a restaurant, lease a restaurant or sell a restaurant at low cost, low risk and high profit.
Have you found the perfect spot to launch your restaurant but you’re not sure you can handle all the nearby competition?
Or do you feel you’re going to have a hard time attracting a lot of customers and good employees?
Well it’s time to consider location a top most priority!
As Concordia St. Paul has noted, the commonly held notion that “90% of restaurants fail in the first year” might be a bit exaggerated; the true number is closer to 60%, a common rate for businesses across many industries. While this is encouraging for many prospective restaurant owners, it is important to remember that the threat of failure still exists, especially if a new venture is ill-advised or badly managed.
Michael Philippou & Victoria Philippou are the Co-Founders of Frozen Fruit Co. Frozen Fruit Co makes FroFru, a revolutionary vegan friendly soft serve made just from fruit and natural fruit sugars.
Our journey into the food business began back in London, England. We were training as lawyers and as part of this our Law Firm sent us to do an MBA, before we starting our training at the firm. It was during this year that we both met and it planted the seeds of wanting to start and grow our own business.
Of course, we had no idea what business we actually wanted to do and furthermore we were tied in with our law firm in London for the next two years. It took about two years to come up with our concept. We were constantly searching and looking for gaps in the market. However, somehow we always came back to food. [Read more…]
How to add 1,000’s of names to your contact list in 24 hours for free
The pain is unbearable. It feels like sticking needles into my eyes.
It’s a necessary evil if you run a business. Each day, minutes feel like hours, as you slog your way pecking the letters and numbers on your keyboard, just trying to add or update contact information about your prospects and clients.
Sure you can outsource the misery, but first you need to find reliable help, trust someone with access to your data, and pay per contact or by the hour.
How to put your contact management on autopilot.
Just as there are different methods in cooking there are different methods to acquire a location for your new restaurant.
There are basically three options when you open a new restaurant:
1) Purchase or lease a property and build a restaurant to your specifications
2) Buy an existing restaurant and assume their lease agreement
3) Lease a former restaurant space that has been vacated.
There are pros and cons to each approach.
The method you choose will be determined primarily by your budget to build and the monthly rent you can afford based on your projected sales.
When it comes to building or remodeling a restaurant, the sky’s the limit. In most cases, you will have a limited budget to build or remodel an existing space.
Assuming your new restaurant will be of similar size and design as your competitors, we can use the competition to determine the cost of new construction.
For example, if you were planning to open a sandwich shop, you can find out the cost to build based on your competition.
Using our sandwich example, we determine it costs between $116,000 and $262,850 to build a Subway based on information on their website.
In addition to the actual cost to build a new restaurant, it’s extremely important to factor in other hidden costs or “opportunity costs.”
Depending on where you live the process of obtaining permits to build a new restaurant can add significant fees and time to your project.
Your budget will typically be the determining factor to build a restaurant or purchase an existing restaurant.
Prior to making a decision in either direction, you need to compare cost to purchase and remodel an existing restaurant compared with building from scratch.
If the cost is the same, you will need to look at the pros and cons of both scenarios.
Pros of Buying an Existing Restaurant:
Cons of Buying an Existing Restaurant
If your budget is $75,000 and the cost to build a space is $150,000, your choices will be reduced.
If you want to open your new restaurant without the funds to build or just don’t have the time to wait 6-12 months to open, buying an existing restaurant may be your only option.
Want to avoid common mistakes and open your restaurant fast at the best price?
