Tips to Lease A Restaurant

1. Tips on Leasing a Restaurant If you’re interested in leasing a restaurant, there are a lot of details to be aware of. With proper planning and assistance, you will be able to get the best possible outcome for your lease. Below are some of the things you should know. Beware of the Time Element Time can be very helpful to you. At the same time [no pun intended], it can cause specific challenges. Many new restaurant owners don’t estimate enough time when it comes to finding the best location. They frequently underestimate the amount of time for negotiating a restaurant lease and building or remodeling the space. Do you want to lease restaurant space? If so, be sure to give yourself more time than you would expect. Typically, you can estimate around 12 months to find the right space and to get the appropriate permit, to remodel the space and to open for business. Always be Ready Once you find the right location, which usually takes around six months, the rest of the process for starting a restaurant goes very quickly. You will need to be ready for things to progress quickly, once the space is found. Below are some factors you should already have figured out. Know Your Business Plan Some of the primary elements of your business plan will include your menu, your pricing and your target customers. These factors will impact where to lease your restaurant. A menu with low pricing will fit one location better than a menu with higher priced items. Think of the people who want to purchase your food. Where do they like to be? Where do they work, where do they live, where do they go for fun? This is something to think about. You want your restaurant to be where you customers are. Know Your Budget Nobody wants to pay too much rent on a lease. Your business plan will help you determine a realistic budget for your restaurant lease. Here are some general rules. Your total occupancy cost will not be greater than 6-10% of your gross sales. Your exact lease rate will depend on other specifics about your restaurant. More Tips for Leasing a Restaurant The tips above were all talked about in “How to Lease a Restaurant.” If you want more information, I’d encourage you to go to that website and read the full blog post. There is a lot that needs to be done to be a successful restaurateur. The original article will arm you with more valuable information.

2. Good luck with your business and if you need to find commercial real estate in the Los Angeles area [or anywhere else in California], let me know and I’ll be happy to help! Article Source: http://www.imfaceplate.com/richardm82/tips-on-leasing-a-restaurant