Cost Savings. An existing restaurant space for lease includes important assets you can use going forward. Original infrastructure items like a hood, grease trap or refrigeration are expenses that the first operator incurred. You can take advantage of these items which are generally left behind when the concept is abandoned. Many states have laws that require an owner to leave behind anything that was permanently affixed to the space so that always means the hood and refrigeration. The grease trap (at least underground ones) can’t be moved and are pretty much permanent once installed. The difference between taking over a 2000 square foot space that already has refrigeration, a grease trap and hood and a “white box” space where you have to install these items is $50,000 dollars or more. That money can go into your new concept’s advertising and marketing program to drive your success instead of in items critical to your success but not too fun to buy or show off.
Time is money. If you have a great idea for a restaurant; second generation restaurant space is ideal. You can be open and operating in a very short period of time when the location has already been permitted, licensed, and operating as a restaurant. Reducing the amount of red tape and time spent dealing with government entities is a winning idea in more ways than one. You can also get your concept to market first. When a lot of competition is taking place and new concepts are launching, being first in the market place assures you greater market share than following by even a few months.
Customer Habits. An existing restaurant space for lease has already developed some traffic patterns from the initial operator, even if it wasn’t a great concept. You have the opportunity to banner to front entrance and market a new location that customers are used to visiting. Don’t underestimate the value to that original traffic pattern when taking over an existing restaurant space for lease.
Expertise. Face it. You’re going into the restaurant business. You’re probably better at assembling a menu than you are at swinging a hammer (at least we restaurant brokers hope so). Your effort and energy needs to be one hundred percent focused on your new concept instead of chasing down the electrician or plumber to finish a job or finding a painter that will show up on time.
The corresponding reason why some owners don’t want an existing restaurant space for lease is much less practical and a lot more tied into emotion. As restaurant brokers, we find the number one reason people don’t want to lease an existing restaurant space is because of ego. As an owner, you want to put your stamp on something and “build” it from the ground up. Our best advice to you is to put aside these emotional elements and focus on the success of the business. You will be much better positioned to build the “ideal” restaurant after you have on successful model open and operating. Renting an existing restaurant space for lease is the most cost effective and quickest path to opening that first unit.
If you’re in the market for an existing restaurant space for lease, contact the restaurant brokers or visit our listings online. Read also our Winning Tactics for Leasing a Restaurant.
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Robin Gagnon, Certified Restaurant Broker®, MBA, CBI, CFE is the co-founder of We Sell Restaurants and industry expert in restaurant sales and valuation. Named by Nation’s Restaurant News as one of the “Most Influential Suppliers and Vendors” to the restaurant industry, her articles and expertise appear nationwide in QSR Magazine, Franchising World, Forbes, Yahoo Finance, and BizBuySell. She is the co-author of Appetite for Acquisition, an award-winning book on buying restaurants.