Restaurant Rentals & Sales - Restaurants Space for Rent

March 4, 2019February 25, 2019

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

How much more can be written about El Cap restaurant in St. Pete? An institution to when JFK was president and an anchor on 4^th 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 4^th 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.

February 25, 2019

The Artist of Sushi

Orlando/Winter Park Fl – Mikado Sushi & Grill is a titan in the restaurant and sushi scene. Executive Chef Liu and his team have a passionate commitment for preparing the highest quality Sashimi, Omakase, and sushi in town. Chef Liu has garnered a following of loyal customers based on his artistry and innovation in seafood. Many ingredients are sourced directly from Tsukiji market in Tokyo, in order to ensure supreme quality.

The Mikado in Metrowest (6417 Raleigh street) was their first debut on the restaurant scene, which has boasted more than 10 years of continued success. Chef Liu plans on premiering a new locale, Boku Sushi & Grill in Winter Park, estimated to begin operations Summer 2019.

February 21, 2019

Effects of $15 Minimum Wage on the Restaurant Industry

The raising minimum wage rate has had a major impact on many service industries across the country, and restaurants are no exception. The topic is a political hot potato, and it’s one that has been tossed around for many years now.

Advocates for a higher minimum wage promise a more productive and healthy workforce that is motivated to perform. Opponents say a lower minimum wage lets entry-level and young workers gain experience and that raising it will hurt businesses.

Those who are for increasing minimum wage rates argue that anything less than $15 an hour is not a livable wage. They claim workers earning less will have to take government subsidies just to survive. But, opponents take on a different stance, pointing out that forcing a business to pay more doesn’t just make more money appear in their budget. This means a higher minimum wage could force a business to hire fewer people and have them work less hours.

This brings up the important point that, oftentimes, it’s not about a business’ unwillingness to pay workers more—it’s a financial inability to do so. In these situations, a higher minimum wage will only harm small, medium, and local businesses. That will end up hurting communities in other ways, even though advocates for a higher minimum wage have helping communities and workers as their primary focus.

Regardless, we are not here to debate the pros and cons. The purpose of this article is to help you understand how a higher minimum wage requirement can effect your restaurant’s operations. Whether or not such a law is in effect in your area yet or not, it is already active in many places and on the horizon in many others. That means preparing for it is important.

One consideration that both sides need to make is that machines are capable (and already in the process of) taking many entry-level jobs away from humans. In the restaurant industry, automation is already taking away jobs with self-serve kiosks in QRS (Quick Service Restaurants).

It is reasonably believed that upping minimum wage requirements will only further encourage restaurants to pursue the implementation of such automation. Data is still murky as far as automation’s impact on the industry, but as the economic cycle rounds to an end, cause and effect will begin to become clearer.

Another potential impact of an increased minimum wage rate is an overall lower number of restaurants. Currently, there is an abundance of marginally profitable chains operating in the industry. Low interest rates and financial engineering are currently keeping them alive. For two decades, the restaurant industry has been on an unprecedented run—and it’s due for a reset. Increasing cost pressure will have a big impact in this regard.

Finally, the elimination of tipping is another thing to look to on the horizon. For instance, many restaurants now default to a 20% service fee divided amongst all staff. Advocates of this movement claim that all back-of-house and front-of-house staff contribute to increasing sales, so they will all perform better with increased per-ticket sales.

These are just a few of the changes we expect to see. We will follow up in a few years and see how accurate and transferable these items are to other cities and states that adopt an increase in the minimum wage.

January 28, 2019

5 Common Trouble Areas of Restaurant Leases

Opening a restaurant is an exciting venture, indeed; but finding the ideal space to lease can be challenging. From the moment that you decided to open a restaurant, there’s no doubt you began conducting massive research from the get-go, including market investigation to determine if an area will prove lucrative for your restaurant business, to getting familiar with your competition and defining how you will set yourself apart and finally finding the perfect spot. It is likely that perfect spot involves a lease and getting in a hurry to tie up the property can lead to a multitude of issues, if you are not careful. Below are some of the items commonly found in restaurant leases that can result in nightmares if you’re not careful.

#1 Common Area Maintenance (CAM)

The rental of square footage is not the only thing you pay with a retail lease. You will also pay a pro-rata share of expenses to maintain the property, referred to as Common Area Maintenance (CAM). CAM fees are accrued and billed in various ways; ranging from monthly, quarterly, or annually and sometimes may be assessed based on repairs, upkeep of common areas, security systems and even taxes and insurance.

In regards to common areas, those may include bathrooms, parking lots, lobbies, elevators, and landscaping. CAM can be a tricky thing for tenants. Landlords like to put in language that permits them to cushion the expenses (i.e. asset management fees for the owner on top of property management fees) and this fee is oftentimes termed as an administrative fee that permits the landlord to charge tenants as much as 15% of the expenses incurred.

One major factor of CAM is that it can also contain capital improvements of the property. These go beyond standard repair and maintenance and although such improvements will inevitably benefit current tenants, including you; the landlord will continue to benefit for years to come. The reason for mention of the CAM is that such fees can result in a major upfront expense or recurring additional charges that you didn’t budget. Therefore, when reviewing lease terms, make sure that controllable expenses have a CAP on how much they can increase any year. The landlord can do little to affect insurance and property tax fees, but they can regulate how much is charged for asset or property management fees.

#2 Landlord Matters

Get acquainted with the landlord prior to signing a lease. A landlord could have the greatest personality ever, but bottom line, you’ll be running a restaurant business to make money and he or she will be overseeing property to make money as well. Some landlords are great, but do your homework and check with other tenants to be sure the landlord is responsive when issues come up and also verify that matters are handled promptly and efficiently.

Regardless of how likeable a landlord is, there is no guarantee you will be interacting with that same person for the tenure of the lease. Naturally, there are landlords who have the best of intentions and might act in 100% conviction, but at some point they will sell; and because of this, get the details in writing.

#3 Get It In Writing

While in a perfect world, someone’s word would be enough, protect yourself and your restaurant business by getting everything in writing. Ambiguous lease terms could lead to problems, and in the event the property changes hands, you want to ensure the terms protect you and alleviate the possibility of lease-price increases or an unexpected termination of the lease.

Lease Term

The location of your restaurant plays a major role in ongoing success. You may have the best food and service around, with customers’ coming from near and far. But what happens if you’re forced to move? If the terms of your lease do not secure you in a specific location long-term, it could be detrimental to your business. You can extend the term of the lease with options, such as in a unilateral agreement, which essentially holds the landlord to additional years on the lease. In addition to this, the unilateral agreement allows you, the operator to exit the space at the end of the original term. This is a great way to secure a property for 20+ years without 20 years of fixed liability.

#4 Exit Strategy

Protect yourself and ensure the fine print of the lease does not lock you in for a prolonged period, if business dynamics were to suddenly change. A number of possibilities could incur while conducting business. Naturally, no one enters business with the anticipation of failure, but unfortunately it happens. An unexpected sickness or injury could occur; a partner may suddenly throw in the towel and walk out, or licensing and permit issues may arise. Then, there’s also the alternative positive aspects such as receiving an offer of a lifetime to sell your restaurant; regardless of the potential possibilities, have an exit strategy defined in the lease.

If a landlord is ethical and wants tenants to succeed, then lease terms that are renewable on an annual basis are beneficial. However, if you encounter a potential landlord who refuses to offer any leniencies, it is probably an indication they will be difficult to work with later on.

#5 Signage

Read the details of the lease and make certain that you can install the signage you want. Depending on your locations, signage regulations and permit fees can fluctuate substantially. Multiple forms of signage are recommended and typically include having access to the road pylon, as well as raceway signs on the front of the building and window signage. Verify the lease details regarding size, location, lighting and aesthetics where applicable.

These are some of the more common issues encountered with restaurant leases. Prior to signing a lease, take into account that it is much more than a monthly payment. It is not uncommon for a restaurant lease to consist of twenty or more pages with a multitude of provisions. For this reason, oftentimes, it is beneficial to consult a commercial restaurant real estate broker or agent who is experienced in negotiating restaurant leases. This individual, an expert in the operations and lease structure needs in your business environment could become a valuable asset to your team and help set you up for success in your restaurant business.

December 26, 2018

What You Should Know About Finding a Restaurant Space for Lease

Let’s be honest, finding a restaurant space for lease is a rather frustrating and time-consuming process. It’s true, and as if that’s not enough, the risk of choosing the wrong location is pretty high.

You see, there’s a good reason as to why most restaurants fail and while poor decision-making is at the core, location is often the cause. In other words, the location of a restaurant is critical for success yet the importance of site selection is often a factor which many restaurant owners seem to ignore.

But what makes a good location and how can restaurant owners avoid this common mistake?

What to Consider When Searching for a Restaurant Space for Lease

Well, there are many factors which can influence the fortunes of a new business and it’s not simply a case of finding a restaurant space for lease. Budget will inevitably impact the final decision but facilities and local economy are just as important. At the same time, taking a macro view of the area is critical, for long term stability is needed for a restaurant to flourish in a new location.

For example, neighborhoods can change quickly and the truth is, even one or two miles is enough to impact the chances of success for a new business. With this in mind, many restaurant owners can end up in trouble as the location is simply a poor choice or their primary reason for choosing that location may have disappeared.

Either way, choosing the right location is critical and here are some important factors to keep in mind when searching for a restaurant space for lease:

Research and Ask the Right Questions

As a rule, there’s no such thing as the perfect location and every area will have a diverse range of unemployment, salary and source of jobs. At the same time, you should still find that some areas are more prosperous than others and through research, you can start to ask questions that will identify locations with the most potential. For example, what type of jobs or professionals are common in the area? Is the median salary increasing or decreasing? What large factories or companies are in the area? Is the number of jobs rising or falling?

Remember to Stick to Your Plans

If you end up with a real estate broker, remember to stick to your guns. After all, most brokers are reliant on commission and so advice can be somewhat biased or less calculated than you would like. Now, that’s not to say every agent wants to take advantage but through your own due diligence, you should have criteria for this site selection and sticking to this formula is often better than simply trusting the advice of a real estate agent.

Keep Your Intention and Budget Under Wraps

When it comes to negotiations, keep your intentions and emotions in check. For many listing agents, the main objective is to find the highest bid. For this reason, if they know your budget, you can be sure that the agent will push for the closest possible fee to this amount. On the other hand, if you remain neutral and try to conceal whatever budget you have available, you can retain more control over the initial asking price.

Avoid Repeating the Mistakes of Previous Tenants

As you know, existing infrastructure plays an important role in the site selection process. For example, when a property is already fitted with a kitchen, bathrooms and proper electrics, this can offer a ready made location for restaurant owners. However, great care should be taken with these properties and this is especially true if the property was the site of a previous restaurant.

The truth is, there is often good reason why these “burn locations” were often unsuccessful in the past. That is to say, when you find a restaurant space for lease, this may be the remnants of a previous restaurant which failed due to an ineffective location.

As you can see, site selection is critical and location is usually the most important aspect of finding a restaurant space for lease. After all, you can improve or renovate a property as much as you want but easily changing location is neither realistic, feasible or possible. Either way, take time to do your own due diligence and know that the research you put into choosing the right location for a restaurant will be a defining moment in the history of your business.

December 5, 2018

{Review} 4 RIVERS SMOKEHOUSE is SMOKIN’!!

The owners and crew at 4 Rivers have created a place where BBQ is king but this court is full of many different delights including a surprisingly impressive array of well-crafted desserts. 4R is on it’s way to becoming a south Tampa institution.

Your order is taken in a cafeteria-style line and served on metal trays lined with butcher paper. No frills, just good food. Rolls of paper towels are on the family style tables and you’re going to need them. The meat is the star with deep flavored long smoked Brisket, Pulled or Sliced Pork, Pulled Chicken, Smoked Turkey, Sausage and, of course, the prized Burnt Ends. They also serve up perfectly cooked Tri-Tip and Prime Rib. I highly recommend the sausage. It’s a juicy, leaner combination of beef and port – a real Texas-style link. All the meats are available as full dinners or as a stacked sandwich. Smoked Chicken and Ribs round out the menu.

Beyond the carving stations 4 Rivers offers 18 sides so you’ll have no trouble doubling down on your appetite. While the Collards were under seasoned, there is a large array of sauces to spice things up. I love the house Hot BBQ sauce that is a perfect blend of sweet and heat. The Baked Cheese Grits are a shout out to corn pudding cut into squares of luxurious cheesy goodness. If you are adventurous try the Smoked Jalapenos or Fried Pickles.

There are also 5 offerings “From the Garden” including a Smoked Portobello sandwich and a substantial list of “Lil’Bites” meals for the little ones.

There are grab-n-go drinks available as well as fountain drinks but if beer is your handle this is not your place as there is only small selection of bottled beer. Convenient call-ahead take out is available and there is a large covered patio for outdoor seating. While 4 Rivers is casual enough to be relaxing it is also well appointed enough to make dining there a real pleasure. Huge portions of carefully crafted smoked meats and sides, house made desserts, dressings and sauces will make you feel right at home in this smoke house kingdom.

More info is available at 4RSMOKEHOUSE.COM

November 29, 2018

Common Mistakes You Should Avoid When Selling Your Restaurant

restaurants for rent, sale or lease in Tampa, Orlando, Bradenton, St Petersburg, Sarasota FL

It could be that you are selling your restaurant due to profitability and sustainability issues, or because you are venturing into other businesses or relocating to an entirely new place. Whatever your reason is, It is no doubt that you look forward to making a successful sale that gives you value for your property and effort.

While you may have been successful in the running of your business over the years, the process of selling your establishment is a different ball game altogether. It requires careful planning and preparation. You will also need the services of experts like attorneys, accountants, and restaurant real estate agents to help you speed up the transfer of ownership.

According to statistics, only 20 percent of businesses put on sale every year actually sell. If you are looking to sell off your restaurant, here are some common pitfalls you should avoid to ensure you do not fall into the 80 percent statistic of unsuccessful business sales.

1. Poor pricingThe pricing of your restaurant is one of the critical factors that will determine whether you will find a buyer quickly or not. However, most restaurant operators make the mistake of setting a price that does not reflect the real value of their business. The location and financial performance of your restaurant are key factors that determine the price you should sell your restaurant.

Poor pricing results from lack of valuation of the business and inadequate knowledge of market trends and pricing. It is therefore important to conduct a comprehensive assessment of your restaurant and have your financials in order and updated. This ensures that the price you choose is not too low, or too high compared to the value of your restaurant.

2. Selling to the wrong buyers

Finding the right buyer for your restaurant can be a daunting task. There are a lot of buyers and sellers in the restaurant real estate industry which makes competition tough and finding the right buyer for your property tougher.

Due to the difficulty of finding a buyer and doing a shoddy job in vetting prospects for their suitability, many restaurant operators make the mistake of selling to the wrong buyers who end up not offering value for their property. Poor negotiation skills also put you at risk of being cheated out of your restaurant’s proper worth — this especially common for those who do not seek the services of restaurant real estate brokers.

3. Failing to get involved in the marketing process

After deciding to sell your restaurant, you have found a real estate agent to help you in the process, and you think your work is officially done, right? Wrong! Most restaurant operators make the mistake of leaving everything in the hands of their restaurant real estate brokers.

As much as brokers are going to leverage on their expertise and networks in marketing your restaurant, you should also chip in. No one knows your restaurant and its selling points better other than you. It is prudent to consult your broker on the best way to market and advertise your restaurant that will not interfere with their activities. Getting involved instills confidence on prospective buyers and improves your chances of getting your restaurant off the market quickly.

November 29, 2018December 4, 2018

Things To Consider When Leasing Commercial Real Estate

Commercial Real Estate Leasing Tips

A business can rent a commercial space from a commercial building owner by signing a rental agreement called commercial real estate lease. There are three main forms of commercial leases, namely full service, net, and modified gross leases.

It is important to understand how the entire process of identifying the right commercial lease works to avoid making costly mistakes. In this guide, we discuss the steps to follow and tips on how to choose, negotiate, and sign the right commercial lease.

Set your property parameters

With numerous commercial property options in the market, you need to set some commercial property parameters to help narrow down your search. In other words, the commercial space you are looking for should satisfy your business’s specific needs. Some of the important considerations you need to make when setting parameters include:

• Ideal customer: Businesses such as restaurants that are focused on attracting physical visitors should consider locations with high foot traffic. Also, you should know where your ideal customer is located. For example, while a Michelin Star restaurant will thrive in an affluent location, a fast-casual restaurant will do well in an area with people who have a preference for fast casual dining.

• Commercial property zoning: In the world of commercial real estate, zoning is done to dictate the type of business that can operate on a particular commercial property. Meaning, as a business owner, you cannot start a retail business in an area that is zoned for industrial use.

• Desired Size: You need to determine your workforce and the expected number of customers to derive the desired square footage. For instance, a restaurant requires 15 sq ft per customer, while offices may require up to 150 sq ft per employee.

• Maximum Budget: You have to determine your maximum monthly budget. With a predetermined budget, you can limit your searches to commercial spaces you can afford.

• Accessibility: It is important to ensure your restaurant or retail business is accessible, for you to do business. In fact, such businesses may need to have ample parking space.

Find the right broker

Leasing agents and tenant brokers facilitate most commercial real estate leases by representing landlords and tenants, respectively. Typically, the leasing agent is paid a commission of around 5% of the total lease by the landlord, while tenant brokers earn a percentage of the landlord’s overall commission called tenant broker’s fee. Remember, since the tenant benefits from the commission, he or she doesn’t have to work in the best interest of the tenant necessarily.

Although it is not mandatory to hire a tenant’s broker when searching for a commercial space, he or she can help you with a list of available options, give you potential financing options, and provide accurate marketing data and pricing.

Understand the types of commercial leases

• Full-Service Lease: The lease is commonly applied in leasing office space. This is an all-inclusive rent lease, which requires the landlord or property owner to pay for any expenses that may be associated with the commercial space including, utilities, repairs, maintenance, insurance, and taxes. The lease allows you to know and prepare for well your monthly or annual lease payments.
• Net Lease: This is an agreement where you pay a lower annual rent as compared to the actual lease amount of a full-service lease. However, the landlord may require you to pay the monthly “usual costs” of the commercial space such as property taxes and insurance. The net lease can be designed to be a single, double, or triple lease.
• Modified gross lease: This is a commercial lease that is considered as a compromise of the full service and net commercial leases. For instance, you may pay for the usual costs such as insurance and taxes, but in lump sum along with your rent. However, the landlord covers the cost of janitorial services and utilities.

It is possible to get caught up in a long-term commercial lease. ROI Commercial Property Brokerage is a leading provider of unmatchable commercial real estate services. We are focused on helping businesses scale their commercial spaces up or down depending on their current needs without the risk of facing penalties.

Our team of experienced restaurant property agents maintains close relationships in the Florida local markets, and thus a great source of valuable information. So, if you are looking for commercial real estate restaurants or help with negotiating favorable lease terms consider consulting with ROI Commercial Property Brokerage.

November 20, 2018November 20, 2018

Starting a Food Service Business without a Traditional Retail Restaurant Lease

Starting a business is not easy. There is the question of capital, labor, taxes and location. All of these things tend to make most people interested in starting a business strongly question whether or not they want to do it.

Multiply these factors by ten, and you have an idea of what it is like starting a restaurant.

The return on restaurant startups can be volatile, to say the least. Once you take everything into consideration – labor, food cost, utilities and location, your dream restaurant concept can turn in to a paralyzing affair.

Location is one of the main things to consider. Most young people enjoy the convenience of delivery and take out. The best locations to start a restaurant that meets these needs are extraordinarily expensive. Cheaper rents can be found in outlying, light industrial areas. There is a tradeoff, however. Potential patrons are unlikely to venture in to a decidedly “uncool” space.

There is a solution, though….the Ghost Kitchen.

This is not a place where pots and pans clang together for no reason, and people get a chill just walking inside of it. Instead, it is a way for entrepreneurs looking to start a restaurant.

Ghost kitchens are like the AirBnB of the restaurant world. Different entrepreneurs and franchise owners use a shared space to create dishes, serve customers and meet the needs of the delivery world, all without having to worry about paying a lease or exorbitant buildout costs. A shared space, ghost kitchens can find and rent the space without the worry of meeting the high price of retail rent.

Another advantage of a ghost kitchen – they are not open to the public. This means a significant savings in capital. The only expenses are food, utilities, human resources and marketing. Unlike the fixed costs of rent and retail space buildout, these aforementioned expenses are not fixed, and if you are not certain that the general public will be as crazy about your concept as you think they will, you are not committing in the long term. You are able to have your cake and eat it too, by starting in a low overhead kitchen, but still able to test your concept.

Using services like Uber Eats, it gives the restaurateur time to learn valuable information about its customer base – what they like and don’t like, what their delivery times are and whether or not it is worth it to open a full customer centered stand alone. When you work out the tweaks in your concept and food offerings, you can take the next step….signing a retail lease…when you are much more certain of its success.

Several large, metropolitan cities have successfully experimented with ghost kitchens, and the trend is certainly on the rise across the U.S.

November 6, 2018November 6, 2018

{Review} Noble Rice – Indeed

Noble Rice Review — KAMU – Grilled Duck with Cherry Asuki Gohan

Chef Eric Fralick and his partner in life and work, Adriana, have created a space in an intimate setting (at Platt and S. Blvd) where each evening a few lucky diners can feast with all their senses engaged. The design of both setting and food is a delicate balance of texture, color, taste and artistry all inspired by nature. With rough-hewn wood planks and exposed brick line the walls, soft suede covers the menu and carefully chosen vessels of wood, Asian-inspired china, rustic pottery, Plexiglas “ice pucks”, small wooden spoons, and other surprisingly creative serving pieces, Noble Rice delivers a beautiful and satisfying dining experience that is worth every dollar. You can see and taste the attention to detail with which each offering is created (without becoming precious) and this creates an amazing epicurean adventure.

Chef Fralick and his small, attentive staff afford every diner the opportunity to enjoy true Omakase (7 course chef-directed menu tasting) or Grand Tasting (15 courses) with an option for sake and wine pairings (the sake menu is extensive and impressive). Some of the best offerings beyond the traditional Nigiri, the menu, which changes frequently, include creative originals such as Oregon Maitake with Ramp Bleu and Leek Ash, Triple Black Ramen (with 18 hour house-made stock), and delightful creations such as pickled Kumamoto Oysters, Hokkaido Uni w/ caviar, Hokkaido Scallop (green curry vinaigrette and garlic chips), Purple Potato Gnocchi, and Foie gras Gelato! All served w/ house-made white and dark soy sauce along side bright pickled ginger and the best freshly made wasabi you’ll ever taste.

Tampa Fl - Shisho Leaf — SHISO LEAF TARTARE

The menu is rounded out with larger plates perfect for sharing such as King Salmon, Scallops, Duck and several grilled Wagyu offerings (my personal favorite is dressed in white truffle oil). Given the intimate space (which includes 4 prime seats at the Chef’s bar) reservations are recommended and you can find more information at www.noblericeco.com.

Umami thrives at Noble Rice.

E.G. Fendrick
11/06/2018