Buying/Converting a Restaurant Business vs
Building a Business from Scratch
Consider these questions …
- The market – Greenville’s commercial market has started to hit the same challenges as the residential market. Inventory has not kept pace with demand at all – and rental rates are climbing drastically. Therefore, much of the inventory available is for new build shell space & the competition for that space is tight, at best, with some of the nation’s best restaurant talent entering the market daily. Purchasing someone else’s assets, including their existing lease may net you a much lower market rent structure.
- Your concept – does your concept require a specific build plan or can an existing space be “tweaked” to meet the demands of what you need? If your build-out needs are very specific (i.e. must fit the demands of a franchisor or the image of other existing locations), then a shell space may be the best option. But, if you’re able to tweak and re-invent someone else’s design within a reasonable budget, a buy-out may make more sense. We have worked with a number of regional concepts that have done this very successfully.
- Your budget – how much do you have and how far does it need to stretch? Calculate the cost of a shell space build-out … now further calculate the time and unknown expenses associated with architects, permits, construction delays and such. Compare both the knowns & unknowns versus buying out another concept and you likely will find the savings to be substantial.
- Your ultimate goals – every restauranteur has one goal in mind, to make much more than they spend. By examining an existing business’ income & expenses, whether you decide to keep certain elements or do a complete conversion – you will go into the project with a much clearer picture of what you need to do in order to be successful. But there’s a number of other factors to consider as well.
When you work with National Restaurant Properties, you’re not working with JUST a real estate professional – we are well-versed in restaurant operations (most of us having owned restaurants ourselves) & the core components of a successful location (beyond the traffic counts and the demographics). We handle everything from negotiating leases on vacant new-build scenarios to helping you find a suitable turn-key location.
Call us for a confidential conversation about ALL of the options available to you.