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.
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).
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:
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.
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.
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 client’s requirements, submitting an acceptable offer and coordinating with solicitors up to exchange and completion.
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.
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 email@example.com.
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