Hospo Hints

 

We’ve put together a page of hospo hints and tips, hard earned over years of owning, operating and designing restaurants, cafe and bars. These tips should hopefully help you overcome some of your fears, answer some of your questions, and help you build the foundations of your successful venue.

 

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Contents

Click on any of the links below or scroll through to read it all.

1. Building consents – the key compliance elements you need to cover off when fitting out a venue from scratch

2. The easiest, most cost effective way to set up a restaurant, cafe or bar – some tips to ease the financial burden and effort learned from years of designing and owning restaurants, cafes and bars.

3. Creating a strong concept for your restaurant, cafe or bar – skipping past the technical, here’s something more fun (and critically important) to your successful venue.

Hospo Hints

1. Building Consents

If you’re setting up a new venue, you’ll most likely need a building consent. Below are some key compliance elements you’ll need to consider if you are fitting out a space from scratch.

Fresh Air (Mechanical)

Contaminated air (from cooking and in toilets) will need to be removed and fresh air will need to be introduced. 

You’ll need a mechanical engineer to provide a design of this showing your hood, fan and ducts sizes and specifications and how fresh air will be reintroduced to the space.

 

1. Building Consents

If you’re setting up a new venue, you’ll most likely need a building consent. Below are some key compliance elements you’ll need to consider if you are fitting out a space from scratch.

Fresh Air (Mechanical)

Contaminated air (from cooking and in toilets) will need to be removed and fresh air will need to be introduced. You’ll need a mechanical engineer to provide a design of this showing your hood, fan and ducts sizes and specifications and how fresh air will be reintroduced to the space.

Plumbing & Drainage (Hydraulic)

How waste water from sinks and equipment is connected to the sewer will need to comply with the building code. If you are washing dishes, you will likely need a grease trap.

In most instances a design of this will need to be approved by the council before the work is done. You’ll need either your plumber, designer or hydraulic engineer to complete this.

Fire

People in your venue need to be protected from fire and be able to easily escape if there is a fire. This will require certain materials to be used, signage, emergency lighting, and many other requirements.

A fire engineer will be needed to design the fire protection elements and will advise you what is required.

Hospo Hints
Hospo Hints

Accessibility

Your venue will need to be accessible to all types of people regardless of their mobility. This includes people in wheelchairs, crutches, older people etc.

There are specific requirements around counter heights, access path widths, toilet sizes and many other things. Your designer will be able to help you with this.

Food Hygiene

There are a lot of requirements around cleanable surfaces, multiple sinks (cleaners, hand wash, dish wash, food preparation), non slip flooring and other things that are needed to ensure your venue complies.

Now what?

Most of the above information and more is searchable online for your specific area. But this gives you a taste of the multitude of compliance requirements needed when opening a restaurant, cafe or bar.  If you need help, send us an email.

 

Accessibility

Your venue will need to be accessible to all types of people regardless of their mobility. This includes people in wheelchairs, crutches, older people etc.

There are specific requirements around counter heights, access path widths, toilet sizes and many other things. Your designer will be able to help you with this.

Food Hygiene

There are a lot of requirements around cleanable surfaces, multiple sinks (cleaners, hand wash, dish wash, food preparation), non slip flooring and other things that are needed to ensure your venue complies.

Now what?

Most of the above information and more is searchable online for your specific area. But this gives you a taste of the multitude of compliance requirements needed when opening a restaurant, cafe or bar.  If you need help, send us an email.

2. The easiest, most cost effective way to set up a restaurant, cafe or bar

The easiest, most cost effective way to set up a restaurant, cafe or bar, is to take over an old restaurant, cafe or bar. Either by buying a failed business for not very much, or taking over the lease for a venue that has failed.

A site that has never been a hospitality venue, will require a building consent (and possible resource consent), plus the installation of plumbing, electrical, gas, fire protection systems, flooring, lighting and so much more.

A failed site already has all these things and just requires a surface level changes to suit your concept and operation. Taking over a failed site can literally cost 1/4 of the money of a new venue.

Not to mention the months of stress and hassle and costs of working with your local council and other consultants to achieve compliance with the building code.

Hospo Hints
Hospo Hints

I’ve seen people spend $140,000 on a fit out and do $40,000 a week in sales. I’ve seen others spend $500,000 on the same size fit out and do $15,000 sales.

You tell me which one works better

Taking over a failed site isn’t always the best way. Sometimes an area doesn’t have a restaurant, cafe or bar and it needs one. Sometimes you can spend $1,000,000 on a fitout and do $150,000 a week in sales. The maths can work well both ways.

But if you’re looking for a way to achieve your dream of having a restaurant, cafe or bar on a limited budget, then finding a failed site can save you a lot of money on things you cant see.

Giving you more money to spend on interior design, furniture, lighting, music, branding – all the fun things that make a space enjoyable for yourself and your customers. If you do take over a failed site, be sure to look at the lease first.

I’ve seen people spend $140,000 on a fit out and do $40,000 a week in sales. I’ve seen others spend $500,000 on the same size fit out and do $15,000 sales.

You tell me which one works better

Taking over a failed site isn’t always the best way. Sometimes an area doesn’t have a restaurant, cafe or bar and it needs one. Sometimes you can spend $1,000,000 on a fitout and do $150,000 a week in sales. The maths can work well both ways.

But if you’re looking for a way to achieve your dream of having a restaurant, cafe or bar on a limited budget, then finding a failed site can save you a lot of money on things you cant see.

Giving you more money to spend on interior design, furniture, lighting, music, branding – all the fun things that make a space enjoyable for yourself and your customers. If you do take over a failed site, be sure to look at the lease first.

3. Creating a strong concept for your restaurant, cafe or bar

Skipping past the technical, I thought we’d look at something more fun (and critically important):

The concept for your restaurant, cafe or bar.

Your concept gives people a reason to visit you. It makes you stand out from competition.

It gives media something to write about. A strong concept makes everything clearer and strongly increases your chances of success.

Hospo Hints
Hospo Hints

Your concept is defined by many things:

Your skills and talents that make you unique and appealing (butchery, specialty coffee, vegan food, sourdough pizza, craft beer and on and on)

Your likes and dislikes (you may love bright colours and dislike monotones, or the other way around)

Your competition (if you’re exactly like everyone else, it’s unlikely you’ll be any busier)

Your location & target market (a lunch offering will do better in a business park than a fine dining dinner restaurant)

Check out our concept development form here to give you some clarity on what you want to do

Your concept is defined by many things:

Your skills and talents that make you unique and appealing (butchery, specialty coffee, vegan food, sourdough pizza, craft beer and on and on)

Your likes and dislikes (you may love bright colours and dislike monotones, or the other way around)

Your competition (if you’re exactly like everyone else, it’s unlikely you’ll be any busier)

Your location & target market (a lunch offering will do better in a business park than a fine dining dinner restaurant)

Check out our concept development form here to give you some clarity on what you want to do

4. What utilities your hospitality site needs before you sign a lease

Your venue is going to need power, water, drainage, gas, fresh air, and fire protection.

It’s not enough to have a power board, a water feed and a sewer pipe to connect to – these things have multiple layers of complication.

I’ll break these down simply below:

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Power

In simple terms, power comes into a building in the form of a cable which carries a number of Amps (a unit of power) to the electrical distribution board (DB). A site may have 60, 180 or any other number of Amps available.

Different pieces of typical hospitality use different amounts of Amps. A large coffee machine may use 32A. A fridge may use 10A. A sandwich press 15A.

A site that has only 60A of power available will need to have the power supply increased to have enough power to supply your restaurant, cafe or bar (dependent on equipment you’re using).

The upgrade process can cost many $1,000’s of dollars and take a long time because you have to deal with utility companies that charge a lot and take a long time.

If you love the site, try to negotiate that your landlord pay for this. Always have your electrician confirm if your site has enough power for the equipment you want to use.

Don’t forget about air conditioning and mechanical extraction – these use a lot of power.

Power

In simple terms, power comes into a building in the form of a cable which carries a number of Amps (a unit of power) to the electrical distribution board (DB). A site may have 60, 180 or any other number of Amps available.

Different pieces of typical hospitality use different amounts of Amps. A large coffee machine may use 32A. A fridge may use 10A. A sandwich press 15A.

A site that has only 60A of power available will need to have the power supply increased to have enough power to supply your restaurant, cafe or bar (dependent on equipment you’re using).

The upgrade process can cost many $1,000’s of dollars and take a long time because you have to deal with utility companies that charge a lot and take a long time.

If you love the site, try to negotiate that your landlord pay for this. Always have your electrician confirm if your site has enough power for the equipment you want to use.

Don’t forget about air conditioning and mechanical extraction – these use a lot of power.

Drainage

In order to drain, sewer pipes rely on gravity. So the location of your sewer connection matters a lot.

If the sewer connection is at the rear of the site, and you want to put sinks at the front, there needs to be enough ‘fall’ for the waste water in the pipes to reach the sewer connection. ‘Fall’ (the angle of the sewer pipes to allow water to drain) depends on the amount of waste water going in to them and the size of the pipes.

There are building code requirements around this and your plumber will be able to confirm this for you.

Fall can happen above ground (i.e. from under the sink) to the floor level. But if the distance from sink to the sewer connection is too long, you will have to go under the floor. 

If it is a timber floor, with a cavity below it, this may be easy. If it is a concrete floor, you may need to cut the concrete, dig a trench, and reinstate it the concrete floor. If you have a car park or basement below, it may be easy.

But it’s not as simple as just connecting your sinks to the drain. Talk to your plumber to make sure what you have in mind is achievable.

Hospo Hints
Hospo Hints

Grease Trap

A grease trap or interceptor collects oil and grease from waste water to ensure the grease does not congeal in and block the sewer system.

If you are cooking with oil and washing dishes, you will need a grease trap connected to your dish washing sink.

These can be under bench units that are cleaned daily, or larger passive exterior units that are emptied by a truck with a suction hose. They have different levels of effectiveness, maintenance and costs. Learn more here.

Sometimes a site will have a ‘greasy line’ (a sewer pipe available for you to connect your dishwashing sink to) and a grease trap already installed.

Be sure to check because a grease trap is many $1,000’s of dollars.

Grease Trap

A grease trap or interceptor collects oil and grease from waste water to ensure the grease does not congeal in and block the sewer system.

If you are cooking with oil and washing dishes, you will need a grease trap connected to your dish washing sink.

These can be under bench units that are cleaned daily, or larger passive exterior units that are emptied by a truck with a suction hose. They have different levels of effectiveness, maintenance and costs. Learn more here.

Sometimes a site will have a ‘greasy line’ (a sewer pipe available for you to connect your dishwashing sink to) and a grease trap already installed.

Be sure to check because a grease trap is many $1,000’s of dollars.

Water

Thankfully, water is pretty easy. Water doesn’t rely on gravity.

Water pipes are under pressure, so can be installed anywhere and you can get water where you want.

You will need to think about a hot water heater though.

These come in many types. Instant, continuous hot water systems are the best (and most expensive).

Small electric ones can run out of hot water quickly or take a long time to get hot water to a tap.

Talk to your plumber about the best one for your situation.

Hospo Hints
Hospo Hints

Fresh Air

Dirty air needs to be removed from your venue and fresh, breathable air needs to be supplied.

You will need to extract dirty air from your kitchen and bathrooms using fans, duct work and kitchen hoods.

Fresh air needs to come into your space either through openable windows or doors or mechanically introduced through fans and ductwork.

Local councils will have regulations based on what is required to keep air fresh and breathable for people using your space.

You can talk to your mechanical contractor or mechanical engineer to get exact requirements for you space.

Fresh Air

Dirty air needs to be removed from your venue and fresh, breathable air needs to be supplied.

You will need to extract dirty air from your kitchen and bathrooms using fans, duct work and kitchen hoods.

Fresh air needs to come into your space either through openable windows or doors or mechanically introduced through fans and ductwork.

Local councils will have regulations based on what is required to keep air fresh and breathable for people using your space.

You can talk to your mechanical contractor or mechanical engineer to get exact requirements for you space.

Gas

Gas is either natural gas or LPG. Natural gas is the one in the ground, connected to the main city gas lines.

Your site may either have a natural connection connection and gas meter already, or not. If you have a meter, great, create an account with a gas retailer and you’re good to go. If there’s no meter – you’ll need one installed. You’ll need to check whether gas is available in the street.

If gas is available at your address, you’ll need to apply with your gas utility to have a meter installed. This will take time and cost money – they will need to dig up the street and footpath to install it in your site.

If natural gas is not available, you will need to use LPG bottles that a LPG supplier can drop off and replace as required. If LPG is required, you’ll need a level, caged platform that is away from openable windows and doors.

Talk to your plumber to confirm local requirements and availability.

If gas is all too hard, you can use electric equipment only. This is not standard but is a possibility if you have enough power supply.

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Bar Design

Fire Protection

Depending on how big your space is and how many people will use it, what type of people use the building or neighbours (commercial or residential) and a number of other factors, will determine what fire protection requirements are needed for your space.

Fire protection includes types of fire alarms (visual or audible or both), whether sprinklers are required, and what type of materials are allowed in your space (i.e. timber walls may not be allowed because they can burn quickly).

There will be requirements on the number of doors people can exit from in a fire and how wide the ‘escape path’ is in an emergency.

You may be required to install ‘emergency lights’ depending on how far people have to travel to escape the building (these are lights that turn on when the power is cut to ensure people can find their way out).

Fire Protection

Depending on how big your space is and how many people will use it, what type of people use the building or neighbours (commercial or residential) and a number of other factors, will determine what fire protection requirements are needed for your space.

Fire protection includes types of fire alarms (visual or audible or both), whether sprinklers are required, and what type of materials are allowed in your space (i.e. timber walls may not be allowed because they can burn quickly).

There will be requirements on the number of doors people can exit from in a fire and how wide the ‘escape path’ is in an emergency.

You may be required to install ‘emergency lights’ depending on how far people have to travel to escape the building (these are lights that turn on when the power is cut to ensure people can find their way out).

Accessibility

This is about ensuring all types of people can use spaces that are intended to be used by the public, whether they can walk freely, are in a wheelchair, or on crutches or any other scenario.

This will mean that it is free an easy to get into the space (either through a level entry or a ramp – i.e. no stairs).

And that there is a certain width available for people to walk through a space (in New Zealand it is a clear 1.2m wide unobstructed path).

Toilets will have to be supplied that are usable by people in wheelchairs.

Not to mention payment methods.

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Hospo Hints

Conclusion

As you can see, there are many factors that come into play on whether a site is suitable for a restaurant, cafe or bar.

Try not to sign a lease without thinking about these things first.

If you rush into it, you can end up with huge costs that you hadn’t imagined.

Talk to your different trades to get answers before you proceed.

Or shoot us an email or give us a call and we can help.

Fire Protection

Depending on how big your space is and how many people will use it, what type of people use the building or neighbours (commercial or residential) and a number of other factors, will determine what fire protection requirements are needed for your space.

Fire protection includes types of fire alarms (visual or audible or both), whether sprinklers are required, and what type of materials are allowed in your space (i.e. timber walls may not be allowed because they can burn quickly).

There will be requirements on the number of doors people can exit from in a fire and how wide the ‘escape path’ is in an emergency.

You may be required to install ‘emergency lights’ depending on how far people have to travel to escape the building (these are lights that turn on when the power is cut to ensure people can find their way out).

5. Lease terms for your restaurant, cafe or bar

Outside monthly profits, the biggest return you’ll get on your restaurant, cafe or bar is when you sell it.

Good lease terms can set you up with money for your next venue, retirement, travel, or an entirely different venture whatsoever.

Bad lease terms can make your business nearly impossible to sell and feel like you’ve wasted 3 to 5 years of hard work and $100,000’s of dollars.

Some key points on what to look for when agreeing on lease terms for your restaurant, cafe or bar:

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Mille

Rent & OPEX

Check out my article here on rent and the 6% rule you should be aiming for. This is critical.

Lease term

The lease term is the length of time you legally agree to pay the rent and OPEX and have exclusive use of the space. This can be anything – 1,2,3,5,10 years. Any number is possible.

Rights of renewal

These are standard in commercial leases. A right of renewal is an agreement, that at the end of your current term, you have the right to renew your lease for another term.

This means the landlord cannot kick you out, you are allowed to lease the space at the end of term, or end the lease and move on.

Like the first lease term, rights of renewal can be any length of time. 1,2,3,5,10 years or any other length.

Rent & OPEX

Check out my article here on rent and the 6% rule you should be aiming for. This is critical.

Lease term

The lease term is the length of time you legally agree to pay the rent and OPEX and have exclusive use of the space. This can be anything – 1,2,3,5,10 years. Any number is possible.

Rights of renewal

These are standard in commercial leases. A right of renewal is an agreement, that at the end of your current term, you have the right to renew your lease for another term.

This means the landlord cannot kick you out, you are allowed to lease the space at the end of term, or end the lease and move on.

Like the first lease term, rights of renewal can be any length of time. 1,2,3,5,10 years or any other length.

Lease term + rights of renewal

The right lease term + rights of renewal are fundamental to a good lease.

Think about your restaurant, cafe or bar 3 to 5 years from now. 

Sales are amazing and you are ready to sell and move onto your next venture.

 A seller comes along to buy the business. They will want to look at the lease.

When looking at the lease, they will want to know that they have enough time to earn back the money they spent on the business.

And that enough time is left on the lease for another seller to come along and buy the business from them. So:

Hospo Hints
Hospo Hints

You want a first lease term + rights of renewal that provide ‘security of tenure’ for potential future sellers.

A good length to aim for is 15 years overall. This could look be: 5x5x5 (5 year first term, with 2×5 year rights of renewal).

Or: 3x3x3x3x3 (3 year first term, with 4×3 year rights of renewal).

In the first example, you spend 5 years operating, sell to another owner and they still have 10 years to operate or sell to another owner. Makes sense?

The value of your business will be drastically effected by your lease terms.

I’ve seen busy restaurants, cafes and bars that have shut rather than sell, because no one would buy their business because their lease was not set up correctly.

This literally meant $100,000’s of dollars and years of hard work down the drain.

Rent & OPEX

Check out my article here on rent and the 6% rule you should be aiming for. This is critical.

Lease term

The lease term is the length of time you legally agree to pay the rent and OPEX and have exclusive use of the space. This can be anything – 1,2,3,5,10 years. Any number is possible.

Rights of renewal

These are standard in commercial leases. A right of renewal is an agreement, that at the end of your current term, you have the right to renew your lease for another term.

This means the landlord cannot kick you out, you are allowed to lease the space at the end of term, or end the lease and move on.

Like the first lease term, rights of renewal can be any length of time. 1,2,3,5,10 years or any other length.

6. What rent is okay to pay for your restaurant cafe or bar?

You can have a busy venue, but if your rent is not right, you could make no profit. Below are some key definitions and items you should be looking for:

RENT + OPEX = TOTAL OCCUPANCY COST

Rent is the annual rent for your space.

OPEX are ‘operating expenses’ charged in addition to rent. This is normal in a commercial lease. OPEX are maintenance costs associated with the building.

You can sometimes negotiate not to pay certain OPEX. E.g. there is a lift in the building, you are ground level and never use the lift – why should you pay for lift maintenance?

Rent + OPEX is the total occupying cost of the space.

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THE 6% RULE

A simple rule of thumb, is to try have your ‘total occupancy cost’ (rent + OPEX) at 6% of sales. I.e. If you total occupancy cost is $60,000 per year, 6% of this is $1,000,000 sales per year.

This is roughly $20,000 sales per week, excluding sales tax. Make sure you think you can achieve this level of sales.

This formula comes from a breakdown of typical hospitality profit & loss statements. If you have 100% of sales ($1,000,000), your cost of goods sold (COGS – the cost of your ingredients – food, coffee, alcohol etc) should usually be around 30% or less. Your labour cost (staff wages) should be around 30%. And your other expenses (insurance, marketing, cleaning, utilities, etc) should be around 19%.

So: 100% sales minus 6% rent

30% cost of goods sold, 30% labour, 19% other expenses

Leaves 15% net profit, a healthy margin in the restaurant, cafe and bar world.

THE 6% RULE

A simple rule of thumb, is to try have your ‘total occupancy cost’ (rent + OPEX) at 6% of sales. I.e. If you total occupancy cost is $60,000 per year, 6% of this is $1,000,000 sales per year.

This is roughly $20,000 sales per week, excluding sales tax. Make sure you think you can achieve this level of sales.

This formula comes from a breakdown of typical hospitality profit & loss statements. If you have 100% of sales ($1,000,000), your cost of goods sold (COGS – the cost of your ingredients – food, coffee, alcohol etc) should usually be around 30% or less. Your labour cost (staff wages) should be around 30%. And your other expenses (insurance, marketing, cleaning, utilities, etc) should be around 19%.

So: 100% sales minus 6% rent

30% cost of goods sold, 30% labour, 19% other expenses

Leaves 15% net profit, a healthy margin in the restaurant, cafe and bar world.

THE GOLDEN GOOSE VS THE NOOSE

This 6% rent can be hard to achieve, but should be your target.

Once your rent is locked in, it is fixed, and very hard to reduce.

A low rent % can be your golden goose, while a high rent % can be a noose around your neck.

If you can find a low rental site, with low competition you are setting yourself up for success.

Yes, high rent sites can work, if high sales are achieved.

But these are usually best left to highly experienced operators with multiple venues under their belt.

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Hospo Hints

My first venue had rent of $20,000 per year and set me up for success. We did sales of $15,000 per week, which meant our rent percentage was around 2.5%. We operated at 20% profit because all our costs were so low and our space so efficient. This meant we made $150,000 profit per year, after my salary. It was an incredible feeling.

My last venue had rent of $100,000 per year, but by then I had earned my stripes and knew what I was doing. We did sales of $40,000 per week, which meant our rent % was just under 5%.

You get into serious trouble when your rent is $100,000 and your sales are $10,000 per week. This erodes your profit margins and puts pressure on you from all angles.

If you ever need help, or have any questions when it comes to looking at a site or making a decision on a lease, email me [email protected]. I’m always happy to help.

My first venue had rent of $20,000 per year and set me up for success. We did sales of $15,000 per week, which meant our rent percentage was around 2.5%. We operated at 20% profit because all our costs were so low and our space so efficient. This meant we made $150,000 profit per year, after my salary. It was an incredible feeling.

My last venue had rent of $100,000 per year, but by then I had earned my stripes and knew what I was doing. We did sales of $40,000 per week, which meant our rent % was just under 5%.

You get into serious trouble when your rent is $100,000 and your sales are $10,000 per week. This erodes your profit margins and puts pressure on you from all angles.

If you ever need help, or have any questions when it comes to looking at a site or making a decision on a lease, email me [email protected]. I’m always happy to help.

7. Demand and supply

Opportunity in the outer suburbs

The inner suburbs, the ‘cool’ areas, are overrun by restaurants, cafes and bars. The demand is high but so is supply. But in some under-serviced outer suburbs, the demand is high and there’s no supply.

People are there, with money, looking to eat out. But they have nowhere to go. If your concept is right, your chances of success are higher in the outer suburbs.

Just look at Peach’s Hot Chicken. They opened in Panmure, an area better known for pawn shops than dining, and now they have crazy queues out the door every single night. An excellent concept plus low competition has meant a much more profitable restaurant than if they had opened in the inner suburbs.

Rents

Not only is competition lower in the suburbs, so are rents.

A shop that costs you $80k per year in rent in an inner suburb, can cost $25k in the outer suburbs. That’s $55k in your pocket, immediately. The old real estate saying that you ‘make your money when you buy’ applies to leasing a space for a hospitality business too.

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Hospo Hints

In an industry where margins are slim, lower rents can make a huge difference.

If you do $15k in sales per week, the lower rent means a drop in your annual rent percentage from 10% to 3% – an additional 7% of profit.

Post Covid-19 – There is going to be a lot less demand for retail spaces so you will have increased negotiating power with landlords. This could mean a long rent free period or a significant capital contribution from landlords.

You will also be in a good place to negotiate a ‘sale friendly’ lease i.e. a lease that will be attractive to future buyers of your venue (multiple rights of renewal, annual rental increases capped at CPI, no demolition clauses). Get in touch with me any time if you want me to explain these ideas.

There will be potential in failed venues. The financial and emotional impacts of a failed concept are nothing to be taken lightly. But at some point these venues and their unused equipment will need to be used again. This can be an excellent opportunity to open a venue, without the massive expense and risk that comes from setting up a kitchen from scratch.

Lastly, lower rents can mean bigger spaces. This allows more room for social distancing, if this ends up being a concept we have to continue living with for a while.

In an industry where margins are slim, lower rents can make a huge difference.

If you do $15k in sales per week, the lower rent means a drop in your annual rent percentage from 10% to 3% – an additional 7% of profit.

Post Covid-19 – There is going to be a lot less demand for retail spaces so you will have increased negotiating power with landlords. This could mean a long rent free period or a significant capital contribution from landlords.

You will also be in a good place to negotiate a ‘sale friendly’ lease i.e. a lease that will be attractive to future buyers of your venue (multiple rights of renewal, annual rental increases capped at CPI, no demolition clauses). Get in touch with me any time if you want me to explain these ideas.

There will be potential in failed venues. The financial and emotional impacts of a failed concept are nothing to be taken lightly. But at some point these venues and their unused equipment will need to be used again. This can be an excellent opportunity to open a venue, without the massive expense and risk that comes from setting up a kitchen from scratch.

Lastly, lower rents can mean bigger spaces. This allows more room for social distancing, if this ends up being a concept we have to continue living with for a while.

Where to from here?

As I said in the beginning, for some of us, there is no other industry we can or want to operate in.

Hospitality is our life!

So we have to go looking for the opportunities regardless of the world we find ourselves living in.

If you need any help in evaluating a site, or tweaking your concept, get in touch with me anytime and let’s figure out a way to keep moving forward!

 

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