Friday, May 29, 2009

Restaurants and the Economy

As the current economy wreaks havoc with the hospitality industry I have seen more and more of our local restaurant industry close it's doors. this may seem to some as a death knell for the dream of owning the restaurant of your dreams, but taking a closer look, there is financial opportunity for the taking along every busy thoroughfare.
Restaurants by nature always seek out the prime locations. the previous owners have left behind in these locations the perfect shell for a new restaurant transformation. The incredible infrastructure that had to be built and put into place, ie; proper plumbing, drainage, waste traps, ADA sized restroom facilities, industrial heating and air. vent hoods, fire suppression and the like have already been installed. Once a restaurant has closed, the infrastructure contained within makes it highly unlikely that the building will ever be converted into, let's say, an office. with the mortgage lenders holding so many of these properties, real deals are available out there for buildings that can more easily and less expensively be re-transformed into a winning restaurant, than trying to convert any other type of building, let alone the expensive task of building from the ground up.
Adding to this is the decline in the cost of building materials, The economics of Lowes & Home Depot. Now is the optimal time to consider your plan into restaurant ownership, seek out closed locations that will suit your purpose. contact the mortgage lender and begin a rapport they may be holding other properties with better deals. contact a designer and discuss your plans. generally transformations and simple upfits do not require the expense of an architect or engineer. Getting all of your ducks in a row now, will place you in a better position as the economy makes it's inevitable turn to a more normal state.

2 comments:

Suzie the Foodie said...

Interesting perspective. It's true, if you have been wanting to open something in a "hot" location that is usually unattainable, perhaps it will become so now?

The pub we went to is called The Library Pub and it was on Main Street. As far as I know, it isn't online, like most of Nova Scotia.

So happy you enjoyed my blog, thank you so much for your kind comments.

Isabel Bradley said...

Interesting post. I agree that there are some intriguing opportunities out there right now. Taking the time to conduct research and engage in strategic conversations can land you an excellent place. From there, you can make relatively simple adjustments like installing high pressure sodium bulbs to ensure the exterior is safe and well-lit for future patrons.