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Our Team Answers Commonly Asked Questions from Buyers and Sellers

Since being founded in 2000, our team has brokered countless deals and secured properties for some of the most distinguished restaurateurs in the industry. We have noticed that, over the years, some of the same questions crop up from both buyers and sellers. In this article, we will answer some of these queries and, if you still want to know more, please do not hesitate to get in touch with us directly. 

  

Q: What is a premium? 

  

A: A premium is what’s paid to the outgoing tenant or operator of a site. This is either for the value of the remaining lease, the location of the property, or any fixtures or fittings and equipment that is agreed to be left by the departing operator. Unlike the rent, the figure that is quoted can sometimes be up for negotiation, but we will ensure that the two parties come to an agreement at the beginning of any transaction. 

 

  • Jack Coat, Surveyor, Sales and Investments in Central London and the M25 

  

Q: How do you value the premium? 

  

A: This is always a difficult question to answer as it's simply a question of supply versus demand in any one given area. In areas like Mayfair, where there is a lack of supply, prices are often higher. However, there are many other factors such as the size, rent per square foot, fit out or inventory and local amenities. Of course, when selling a business we use multiples of profits (EBITDA).  

 

  • David Rawlinson, Founding Director 

  

Q: How long will it take to sell my premises? 

  

A: No one can predict an exact timeframe and market fluctuations can influence timing. However, we focus on what we can control, and we have three main components which maximise interest:  

  1. Our expertise to compute a sensible price – there is, of course, a direct correlation between a realistic price for a site and how quickly it will sell 
  2. Our extensive database of active buyers – because of our outstanding track record of sales in London we have a record of all buyers looking in a certain area at the click of a button 
  3. Our successful marketing strategy – we have various marketing platforms to highlight the best features of your property and reach as many operators as possible 

  

Using our professional advice and resources we can usually find a buyer within a matter of weeks, with the legal process taking on average four to six weeks. 

 

  • Danielle Agami, Surveyor, Central London Sales and Specialist in A1 Acquisitions 

  

Q: We are a new entrant into the market, and we are just starting to look for our first restaurant. How do we secure our first site? 

  

A: One of the first things you should do is make sure you have an expertly created landlord pack. A landlord pack is a document that includes a thorough description of your proposed concept, with attractive visuals of the food and planned restaurant interior, a draft menu, information about the founders/investors and your market research. Essentially, it must prove that you have covered the groundwork. This is the best way to sell yourself and your brand to a landlord and you will find that having this will minimise the time it takes to find yourself a desirable property. Our acquisition service can guide you through this and help you find your desired site. 

 

  • Guy Marks, Senior Surveyor, Central London Acquisitions and Sales 

  

Q: What are the benefits of your acquisition services? 

  

A: At Restaurant Property, we have a huge database of available sites through our extensive network of operators, landlords and existing agents in the industry. This means that, as an operator, you will not be missing out on sites which fit your requirements. Restaurant Property will be acting on behalf of the client to secure the best deal possible by negotiating a premium for a lease assignment or new lease terms. We use our expertise to advise the client throughout, from sourcing an off-market site that matches our clients requirements, submitting an acceptable offer and coordinating with solicitors up to exchange and completion. 

 

  • Daniel Rogers, Surveyor, Sales and Acquisitions in Central London and the M25 

  

 

Q: How much rental deposit should I budget for? 

  

A: I would always suggest to budget for 6-12 months especially if you are taking a site under a new company. 

 

  • Gaby Sether, Surveyor, Central London Acquisitions and Sales 

 

Have more questions? We would be happy to answer them, just give us a call on +44 (0)20 7935 2222 or email us at enquiries@restaurant-property.co.uk. 

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