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Business Plans are Important When Acquiring the Right Real Estate – Here’s why!

restaurant business plan for real estate

You have a phenomenal idea for a new restaurant. You’ve perfected your recipes, designed your concept  and now you’re ready to lease the perfect space in which to make your dream a reality. But it isn’t as simple as handing over cash and signing paperwork. Landlords won’t let just any new business concept set up shop in their plazas. You have to pitch your restaurant idea to them so that they can decide whether or not it appeals to the market they are reaching and whether or not it will provide value to the retail space. The best way to pitch your concept is to formulate a business plan. It is the most widely used genre in business settings and an invaluable tool to have as an entrepreneur.

Here is a comprehensive template for creating a restaurant business plan. You can create a word document or a PowerPoint to display this information.

Concept Description

Begin by describing what it is you are offering at your restaurant – what type of food will you serve? Will it be a fast-food type of establishment, a casual sit-down eatery, or a fine dining experience?

Customer Type

Think about the demographics of the customers that shop in the plaza in which you are seeking to rent.  Why are they choosing this restaurant? (i.e. to drink and socialize…experience fine food…or unique coffee)?  What is their household income level? Their age bracket?

In addition, what will be the heaviest traffic time for customers (breakfast, happy hour, lunch, etc.)?

Sample Menu

Even if it isn’t artfully created by a graphic designer yet, provide the landlord with a rough draft of what your menu will look like so they can gain an even better understanding of the type of establishment you are opening.

Management Team Bios

Give a face to the people behind the concept. Who are they? What are their professional backgrounds? What unique skills are they bringing to your team? This will help build credibility and trust.

What type of improvements will be made to the property?

Get specific about the modifications you will be making to the building so that the landlord is aware in advance. Are you installing a grease trap and hood? Implementing an elegant interior design that requires a lot of painting, light fixtures, etc.? There may be some changes you need to make that they do not approve of, so it is best to be upfront about everything.

Market overview and why your concept will work

Do some research and find out what the market for your particular offerings looks like. Is it growing? Is there a demand? Use sites like IBISWorld, Upserve and Toast  to find the trends and market information. Then, based on your findings, explain how your concept addresses a need or gap in the market and why you have a unique value proposition that will lead your business to be successful.

Other locations?If you have a franchise or are looking to open multiple locations (or already have), mention that. If your other locations or planned locations are in close proximity to the space you are trying to lease, that may create an issue.

Business structure

Explain the hierarchy of your business. Who will be signing the paperwork? Whose name will be on the lease? What are your team members’ titles? Is it a partnership?

Financials

Where is the money coming from? What are your reserves? Do you have investors? Are you investing your own personal funds into the restaurant? Have your crowd-sourced funds? Be transparent about your financials so that the landlord knows they can trust you to keep up with your payments.

For this section, you may want to seek assistance from an accountant. Include documents such as a budget and profit and loss statement for the first five years of operation.

Your business plan doesn’t have to be a ten-page essay. Keep it simple and to the point so that the landlord knows exactly what your restaurant will be and how you will make it happen. Your business plan could be the difference between landing your dream restaurant real estate space and losing out on it.

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{Review} Noah’s Eat: La Teresita – Legendary Cuban

la teresita restaurant review Tampa

Around the time CB radios were reaching their peak of fame, the Capdevila family founded this taste of home from which they emigrated during the rise of Fidel Castro. Not far from “Malfunction Junction”, as CB chatter called the Intersection of 1-4 and 1-275, La Terisita was born in 1972 as a grocery store on Columbus Drive in “Cigar City,” also a reference to Tampa’s heritage with the Cuban culture. The thread of political significance has endured as the restaurant has hosted the likes of George W. Bush and Al Gore!

Politics and trucker lingo aside, La Terisita is as authentic and delicious as any restaurant can be, Cuban or otherwise.  There are three distinct aspects to the place; the full sit down experience, an old school lunch counter and even a take-out wing in the back. Full disclosure, I love Cuban food and I’ve been eating it in Tampa even before La Teresita opened, but LT does it with a real family feel. This is why I always pick up a Cuban sandwich from LT and bring it to my Mom any time I visit Tampa! Their ropa vieja and palomilla are absolutely amazing, especially when accompanied with a bowl of the Spanish bean soup and some plantains.  Made even more divine when topped off with some flan and café con leche. Oh, and did I mention the prices? Well, it reminds me of traveling in the Asturias region of Spain (who populated much of Cuba!), where the cost of the amazingly prepared meal seems to be the same as the cost of the actual ingredients! From Havana, to Miami, to Tampa, nobody does it better than the restaurant La Teresita. Do yourself a favor and take a trip to a place where tradition and flavor live.

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Restaurants Can Still Earn Revenue without the Restraints of Fixed Real Estate

restaurant catering off site

If you own a restaurant or food service business that gives you the opportunity to offer catering services, there are virtually no limits to the number and types of events you can attend. You just have to be willing to think outside the box….and away from from your fixed restaurant real estate location.  

Rita’s Italian Ice of San Jose provides a stellar example of how a franchise can maximize their catering revenue. Shortly after opening the brick and mortar location, the owners sought community events at which to bring their food truck or set up a booth. But instead of limiting their options to events that were actively seeking food vendors, such as food festivals, they subscribed to the philosophy of “If you don’t ask, you’ll never know.”

The marketing team reached out to even the most unlikely events such as a dog festival and a vegan festival to see if the organizers would like to add a food truck to the event.

Here are just a few examples of events they have attended:

  • Bark in the Park

You might not think people food has any place at a festival for dogs and dog lovers, but this festival accepted a small number of vendors for the “human food” section. Numerous cities around the country host this event, so just Google “Bark in the Park” and see if you can find a festival near you.

  • Vegan festival

Many major cities host annual vegan festivals. Even if you are not an all-vegan establishment, bring what menu items you have that are vegan so that you do not miss out on the money-making opportunity. Being a vendor at a vegan festival will also help you reach a new customer segment who may not otherwise visit your restaurant.

  • Italian Festival

Is your food associated with a certain culture? Rita’s Italian Ice had no problem booking a spot at the local Italian festival (I mean, it’s in the name!), but if, for example, you are a boba tea franchise, you could look for local Taiwanese festival or partner with a Taiwanese Student Association event at a local college.

  • Night Market

Night markets are becoming increasingly more popular. They are basically farmer’s markets- only they are held at night and are usually more entertaining. There usually aren’t too many limits as to what you can sell, so they are ideal events for almost any type of restaurant concept.

  • Farmer’s Markets

Most farmers markets allow restaurant vendors, but be aware that some markets only allow you to buy a stall if you agree to commit to selling every week for several months.

  • Flea Markets

Many local flea markets also have a food section. Again, like the farmer’s markets, there may be a commitment clause when you apply to be a vendor, so be careful that you don’t sign up for something you cannot follow through with.

No matter what type of event is going on in your city, chances are they might be open to having you as a food vendor. It never hurts to ask, even if you don’t think your offerings are aligned with their event theme. For example, at the Mushroom Mardi Gras in Morgan Hill, California, not all of the vendors are mushroom-based; there is typical fair food like funnel cake and shaved ice. However, on the other hand, some very niche festivals like bacon festivals sometimes require you to sell bacon products (Can you easily modify an existing menu item to include bacon just for the event?).

To find events in your area, check out Eventbrite, your city calendar, Facebook, Eventful, Craigslist, Nextdoor, and your local newspapers.

Tips:

  • Look at past events to do a quick analysis to see what kind of vendors they have had or are missing.
  • Apply early, spots at popular events fill up fast.
  • Market your services to the event organizer by clearly explaining why having your business at the event would be beneficial- especially if there isn’t a clear connection between your product and their event.
  • Estimate your ROI. If the event doesn’t have a successful track record or is brand-new and charging high vendor fees, it may not be worth it.
  • Know what equipment you would need, such as electricity.
  • Have any necessary insurance forms/permits readily available.
  • Share the event on social media
  • Keep in touch with the event organizers after the event. You might be able to score priority sign up for the next year!

 

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Noah’s Eats {Review}: El Cap – Baseball & Burgers

El Cap Restaurant Review

How much more can be written about El Cap restaurant in St. Pete? An institution to when JFK was president and an anchor on 4th Street, just north of Sunken Gardens, another shrine that welcomed pre-Interstate travel to the Sunshine City.

It’s roots are traced to the family of Augie Donatelli, the famous (or infamous) umpire who called Willie Mays out at home plate in the 1973 World Series, sparking a charge from the dugout from Yogi Berra, then the manager of the New York Mets. Coincidentally, I frequented Augie’s Dugout in the mid ‘70s, a quaint little bar located even further north on 4th street.  Controversy aside, Augie is forever captured on the first cover of Sports Illustrated. The restaurant is adorned with some pictures of him, along with other eclectic paraphernalia.

With this pedigree, you’d expect the place to deliver, and it does. For me it’s all about the burger. Look no further, beef ground on premise every day. Juicy and delicious with pickle and onion, served with a side of steaming fries overflowing from their red basket! The Daily Double (whose name pays homage to races at Derby Lane, the local greyhound track) is my go to. Double the meat and perfect for recharging after racing the St. Anthony’s Triathlon, exactly my routine for about 15 years straight!  These days El Cap is also a bit of a sports bar, where you can grab an affordable drink or beer, and catch whatever game’s in season.  The servers are as authentic as the place, so pull up a concrete patio bench outside, take in some history and the best burger in the Tampa Bay Area, and possibly the state! From a guy that’s lived all over the US, I’d put the El Cap burger in my top three all time, anywhere, which is why visitors and locals alike will be enjoying this gem for another 50 years.