Restaurant Property Case Study

858 Words4 Pages
Restaurant Property A restaurant’s success is often dependent on its location. Restaurant’s that are located near other restaurants can enough synergistic benefits due to their location (Parsa, Self, Njite, & King, 2005). However, choosing the wrong location can also spell certain doom for the establishment. In general, restauranteurs must ensure that they are making enough profit to justify the demands put forth by their landlord and the local government. For this reason, the restaurant’s deed or rental agreement is one of the most important document in determining a restaurant’s fate. This paper seeks to examine the issues associated with leasing restaurant property; in particular Harlequin and Brine, an upscale casual restaurant. Types…show more content…
Purchasing the property allows the owner to benefit from equity, avoid landlord-tenant issues, and eventually benefit from a paid-off mortgage. However, renters have a wider variety of locations to choose from, and avoid the liabilities and obligations associated with owning the property (Willerton & Grandfield, 2013). Most importantly, 95% of commercial spaces are for lease instead of being for sale (Willerton & Grandfield, 2013). Furthermore, many restauranteurs simply cannot afford to buy a property outright. Due to availability and cost requirements, Harlequin and Brine will lease a property instead of buying…show more content…
Restaurants have their own sets of unique obligations that they must face. Most states will require that the establishment be accredited as food service establishment. This will impose several requirements related to the building such as textiles, flooring, ventilation, storage areas, and even the number of exits that the establishment has (Mealey, 2016). Another important aspect to consider is whether or not the establishment will be permitted to serve alcoholic beverages. Through the combination of landlord, city, and county, many properties are not allowed to serve any alcoholic beverages on the premise (Mealey, 2016). Restaurants must also examine their lease agreement and local zoning laws to confirm they can indeed be open during their preferred hours of operations. Within the lease, a landlord may dictate the business’s hours of operation (Levey, 2017). Furthermore, many cities and towns had historical blue laws that prevented businesses from opening on certain days of the

More about Restaurant Property Case Study

Open Document