How to go about renting out an existing Coffee Shop

Log in to reply
L

Longdean0053

  • #1
    Hi, I'm new to this and am interested in knowing if anyone can advise on how we are best advertising our fully equipped and stocked Coffee Shop for rent? We are based in Birtley near Gateshead in the North East. The 'retail space' has been converted into a Coffee Shop with a very large rear kitchen (hopefully to deliver on buffet/parties/catering orders) and as we have already 3 businesses in the same premises, we can't provide the focus on developing the Coffee Shop further. Thus, our thoughts were to rent it out. We've spent approx £17,500 on converting/equipping the shop and we are real proud of what we've achieved to date, but really need to hand over the day to day running to another business person. As some of the facilities are shared, its important for us to work with someone who we feel we can trust (as well as obviously having the legal stuff in place plus references and Guarantors). Any idea how we best go about doing this, other than an advert on Gumtree?!!! All suggestions would be most welcome, with thanks in advance. Dav
     
    L

    Longdean0053

  • #3
    5wire said:
    How about employing a manager with relevant experience to run it for you?
    Click to expand...

    Hi,

    THANK YOU for taking the time to look at my query and provide your valuable feedback, very much appreciated. We did this, that is employ a Manager for the first 6 months, and despite all the assurances and wonderful things that could be done, ultimately it just simply came down to us paying the wages and the employee just doing the standard hours behind the counter, without any further input into developing the business out there. We really want to continue on our existing businesses, because otherwise there is a danger you could spread yourself too thin. Hope this makes sense?
     
    Upvote 0
    5wire

    5wire

    Free Member
    Jul 14, 2010
    94
    13
    Warwickshire
  • #4
    Longdean0053 said:
    Hi,

    THANK YOU for taking the time to look at my query and provide your valuable feedback, very much appreciated. We did this, that is employ a Manager for the first 6 months, and despite all the assurances and wonderful things that could be done, ultimately it just simply came down to us paying the wages and the employee just doing the standard hours behind the counter, without any further input into developing the business out there. We really want to continue on our existing businesses, because otherwise there is a danger you could spread yourself too thin. Hope this makes sense?
    Click to expand...

    Yeah I understand it from the perspective of, you want to focus on what you're already doing well rather than start rushing into other projects.

    Where are you based? It maybe worth an "add" in a local business paper, or even approaching a networking event to find somebody with that area of expertise who could potential generate you a lead to a persons looking for a business of such, this is a bit time consuming though really.

    If it is all in place and ready to go I imagine it would be a weight of a potential buyers mind, it just depends what you're going to "charge" the for the initial set up that has been done.
     
    Upvote 0
    L

    Longdean0053

  • #6
    5wire said:
    Yeah I understand it from the perspective of, you want to focus on what you're already doing well rather than start rushing into other projects.

    Where are you based? It maybe worth an "add" in a local business paper, or even approaching a networking event to find somebody with that area of expertise who could potential generate you a lead to a persons looking for a business of such, this is a bit time consuming though really.

    If it is all in place and ready to go I imagine it would be a weight of a potential buyers mind, it just depends what you're going to "charge" the for the initial set up that has been done.
    Click to expand...

    Hey there, I have already placed on Gumtree. May as well try newspapers. Networking - might as well try Durham Business Club, thank you!!! We're only initially looking at rent and utility bills, contribution towards equipment can follow in due course as we would hope that the new owners could make a profit first and then share a little bit more with us, kind of a win win situation ideally. Cheers for your input though!
     
    Upvote 0
    I

    IndiCafe

    Free Member
    Nov 17, 2010
    196
    36
  • #7
    Just to confirm my understanding, it sounds like you don't actually want to keep the business, you just want to keep the assets?
    Wouldn't this be very similar to leasing out any retail unit, i.e. place it in the hands of a commerical/retail property agent? Then someone would start their own business within the unit. The main difference from a standard retail property lease would be that the lease would include the coffeeshop equipment, F&F, as well as clauses relating to communal areas/shared costs.
    Also, it's worth clarifying whether the unit has A3 planning permission for selling hot food made in the kitchen.
    Personally I'd speak to the agencies and also get a view from a retail property solicitor.
     
    Last edited:
    Upvote 0
    L

    Longdean0053

  • #8
    Hi, thank you for your kind response and valuable comments. You are right in your understanding. We have approached 1 commercial agent, they wanted £500 up front marketing costs and then £1,000 minimum rental management fees. I think the agents themselves can be deal breakers, and in this particularly harsh economic environment, we are willing to be much more flexible and thus hopefully keeping costs down will help the new owner of the business. Hope this explains why we are looking at other ways to go about marketing the lease of the business?
     
    Upvote 0
    Log in to reply

    Latest Articles

    Top Bottom
    Community
    Articles
    Menu