In Ontario, real estate is one of the most common avenues of investment – and for good reason. As Canada’s most populated province (and core hub of culture, business, and economics), real estate here is in high demand. This goes for both the residential and business sectors. That said, not all real estate investments work the same way. So should you invest in restaurant real estate if you don’t have a restaurant business?
The short answer is this – in today’s economic landscape, investing in a restaurant property with the sole intention of renting it out to other entrepreneurs (rather than operating a food business in the space yourself) usually doesn’t make sense. However, there are other areas of opportunity for investors who are drawn to the restaurant industry.
In this blog post, we’ll explore a handful of those potential ventures. Keep reading for more insights.
The Ins & Outs of The Restaurant Industry
Making an investment in residential real estate is fairly straightforward. You find an existing property, make a few upgrades, add tenants, and you’re ready to start generating some serious cash flow. However, while both realms may seem similar, commercial real estate (especially the restaurant field) is a lot more complicated. To that end, buying a restaurant property and finding a tenant business to fill the space won’t have the same ROI potential as a residential investment. So nine times out of ten, this move wouldn’t make sense for an investor or entrepreneur.
All that said, the restaurant industry is still full of investment opportunities. Depending on your personal and business goals, you should be able to find a venture that suits your ambitions.
Thinking about opening a restaurant in Toronto? Check out these other blog posts for helpful tips!
- How to Sort Through Restaurant Listings
- Buying a Restaurant? Here Are 5 Questions to Ask
- How to Hire Restaurant Staff
Be a Restaurant Owner
If you’re set on owning a physical restaurant space, you could purchase an existing business with property. While this will mean owning (and operating) an actual restaurant, it allows you to make two investments at once. In addition to owning an operational business, you also own a piece of high-value real estate which can appreciate over time. To that end, purchasing a restaurant within a mixed-use property can help you further diversify your earnings by tapping into the residential market.
If you have reservations about running your own restaurant, you may consider making this investment with a business partner who is experienced in the industry. Alternatively, you could work closely with consultants and other industry experts who can help you get your restaurant operating smoothly.
Investing in an Existing Restaurant Business
One alternative to being a restaurant landlord is to directly invest in an existing restaurant business. Starting, operating, and eventually scaling up a restaurant business takes drive and dedication, but above all else, it takes money. There are always restaurant owners seeking the capital to bring their vision to fruition. This opens the door to investors who are eager to get into the food and beverage industry.
Like any venture, investors should be extremely diligent in vetting and interviewing restaurant owners before committing to a contribution. This goes for small but eager start-ups and larger brands or franchises.
Looking for more restaurateur resources? We’ve carved out some helpful tips for starting your restaurant on our blog. Check it out.
- How to Find a Restaurant For Sale in Toronto
- The Essential Restaurant Start-up Checklist
- How Long Does it Take to Build a Restaurant From the Ground Up?
Invest in Restaurant Tech
In today’s digital day and age, the restaurant industry is evolving quickly. A number of new technologies (many of which are A.I. powered) have seen quick adaptation by restaurant owners and other industry professionals in hopes of making everyday work smoother and more efficient. This tech evolution has created almost countless opportunities for entrepreneurs to invest in digital products, and start-ups, or even create new innovations for the market.
Unlock Your Next Venture
If you’re passionate about the food and beverage industry and are searching for a high-ROI investment opportunity, the best place to start is with a professional restaurant real estate agent. That’s where we come in – Carve Real Estate.
Whatever your restaurant real estate goals look like, our industry-specific expertise and business prowess can guide you toward an exceptional investment venture.
Considering a foray into restaurant real estate? We can help! Send us an email or give us a ring at 416-618-0054 to get in touch.
