If you are getting ready to sign a restaurant lease, you are almost certainly being asked to provide the name of someone who will provide a personal guaranty of payment on the lease. This person, whether it be you yourself, or someone with whom you are associated, will be personally on the hook if the tenant (usually an […]
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New Restaurant Location? Strongly Consider a New LLC.
I often say that opening a restaurant is like becoming a parent. It keeps you up late at night, it occupies most of your time and attention, it makes you worry whenever you leave it with someone else…. But like parenthood, restaurant ownership can also get easier over time. And, when it does, you may […]
Read more...Tough Market Makes a Good Restaurant Lease More Important than Ever
2017 has not been the easiest year for restaurants, particularly for sit down casual dining restaurants. Reports of store closures, missed earnings, and abandoned concepts have been a common occurrence this spring, as restaurants have tried to recover from its worst year since the recession. Even fast casual chains, which had been thought to be insulated […]
Read more...Can My Landlord Lease to One of My Competitors?
My family and I had dinner this past weekend at the newest location of a locally-based fast casual restaurant chain. It had a line nearly out the door and every table was full. After dinner we noticed that, in the same shopping center, was an existing restaurant serving the exact same type of food. It […]
Read more...In Restaurant Sales, its You and Me and the Landlord Makes Three
When involved in a restaurant transaction, the parties (understandably) spend much time and effort on examining the health of the business and the terms of the deal itself. The buyer will, among other things, study the restaurant’s revenues and operating expenses, any potential liabilities, and the condition of the equipment involved. On the other side, […]
Read more...The Four Relationships that Can Make or Break Your Restaurant Business
The restaurant business, like almost all businesses, is about relationships. And, of course, the most important one you will have is with your customers. If you don’t preserve that relationship, you won’t have a business for very long. But there are other relationships that must be protected just as jealously, because if any of them […]
Read more...Don’t Even Think About Buying a Restaurant Without Answering These Four Questions.
For generations, owning and operating a restaurant has been a common dream for would-be entrepreneurs. Unlike many other businesses, most of us think we understand how restaurants operate (we all eat at restaurants, don’t we?), and there is a certain charm and allure to the idea of welcoming our friends and neighbors to a place […]
Read more...Three Common Mistakes to Avoid When Starting your Business
Let’s get one thing out of the way: when you are starting a business you are going to make mistakes — a million of them. That’s okay. It’s how we learn and grow, and it also keeps things interesting. But what’s not okay is when we make mistakes that are easily avoidable, and which can […]
Read more...What are Your Options? Negotiable or “Market Rate” Lease Renewal Provisions
In a changing real estate market, especially one with rising commercial property values and rental rates, whether you have a renewal option in your commercial lease and the terms of any such option can be critical. It is highly preferable to have an option provision that specifies the rate of any renewal, e.g. some set […]
Read more...12 Questions to Ask (and Answer) Before Signing Your Restaurant Lease
As I’ve written here before, perhaps the document that will have the greatest impact on the success of your restaurant will be your lease. It sets the terms of your relationship with your landlord, governs the manner in which you may use your space, and determines what you must pay – each and every month […]
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