Are you finally ready to open up that eatery? If you’re like most restauranteurs, you’ve probably spent a long time thinking about the perfect concept, menu, and decor. But what about the actual space your customers will walk into? The truth is, just because a listing is on the market (and in an area you like) doesn’t mean it’s ideal for your business. Finding the right spot requires careful planning—and knowing what to keep in mind during your search is a great start.
If you’re beginning the hunt for the perfect restaurant space, here are a few things to keep in mind…
Location
The right location can mean the difference between a buzzworthy eatery, and one that barely stays afloat. And it’s not just the quantity of foot traffic that matters—it’s also about quality. When you’re looking at a space, ask yourself if the people who walk by every day are your potential customers. If you’re opening a gastropub, you may be better off searching in a vibrant, central area than in a well-established suburb. Then again, the opposite could be true. You won’t for sure know until you observe what’s happening in the neighbourhood firsthand.
Size and layout
Have you ever walked by a massive restaurant and noticed that just a few tables were occupied? The problem isn’t just that the owners are paying for too much space. Unfortunately, a nearly empty eatery also makes a bad impression—as does one that’s overly noisy, or hard to navigate because the tables are too close together. These are just a few of the reasons why size and layout matter. When you’re looking for space, be aware that looks are often deceiving. Square footage can fill up fast, and equipment and furniture may not fit in the way you’re imagining.
How the space was used before
It pays to do your homework. That means finding out how the space you’re considering was used before. Was the last business that occupied it successful? Why are they leaving? Of course, just because another restaurant failed to thrive in a specific location doesn’t mean yours will too. That said, learning about the eatery that was there before—and how its level of success may have been connected to the neighbourhood—can give you some clues as to whether it’s right for you.
The right lease
It’s hard to think about the possibility that your business won’t thrive. That said, we all know some restaurants don’t make it—and having your ducks in a row (financially) is never a bad idea. With that in mind, think long and hard before locking yourself into a lengthy lease. You should also be on the lookout for hidden costs and mysterious terms—never sign anything that isn’t crystal clear to you! Bottom line: to avoid major issues in the future, have your lawyer go through your lease carefully before signing it.
Your budget
One of the biggest mistakes restauranteurs make is creating a budget that’s too tight. As tempting as it may be to spend a little more than you expected on a great space, don’t lose sight of the many other new expenses you’ll be taking on. How much will you likely have to spend on equipment and renovations? If you’ll need a new ventilation system, that alone could make a major dent in your budget. When all is said and done, your rent is just one of many potential costs—one you should be able to cover with just a small percentage of your monthly sales.
No doubt about it: there’s a lot to consider when you’re looking for the right space. Luckily, with a restaurant real estate expert in your corner, you can focus on what matters most—your business, your vision, and (of course) your customers.
On the hunt for the ideal restaurant space? Reach out to learn how I can help you make the smartest purchase possible!
