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The Realities of Restaurant Real Estate
- Develop your location/site selection criteria or model as a business plan.
- Complete all due diligence including current and detailed demographic reports, traffic studies, parking field plans, and tenant mix.
- Verify that all land entitlements, licenses and governmental permits are in place and can be acquired to open your restaurant.
- Meet with city planning departments to achieve your construction or re-modeling plans.
- Make sure your chosen prime location economically pencils with your financial pro-forma.
- Analyze restaurant competition and their bottom line performance in your trade area to determine what your estimated market share percentage will be.
- Live in the trade area for 7 days and nights to obtain maximum on site information and record accordingly.
- Honestly and objectively determine form your research and your gut – Is there a marriage between the demographic profile of the area and your customer profile?
- Location – Location – Location means visibility, accessibility and positioning your site selection development program.
- Operators must create win-win relationship deals with their landlord developers.
- Document a detailed paper trail consisting of letters of intent, counters, site submittals, governmental regs, and lease drafts.
- Negotiate your deal so that your company does not compromise its cost of fixed overhead – knowing that cost is constant heather your restaurant is open or closed.
- Make sure you have an existing company infrastructure in place to forward effectively.
- WALK AWAY from a deal that does not make sense for your Company or makes you feel uncomfortable.