Restaurants - Questions on Fitout cost, rent, premiums, equipment

[Zuber Ali]

Hi All,

would appreciate some advice. I am looking to start a Gourmet Burger shop, i am not trying to reinvent the wheel with my concept rather take a concept that i have seen work in other locations and implement them in a location that i believe it can work, and currently doesn't have anything similar.

right now i am at early stages and trying to do all the numbers to see how feasible this project would be, if at all.

the questions i have are as below, any help will be greatly appreciated.

Rent - what should i be wary of when looking into rent, i.e number of years on lease, common pitfalls.

premium/goodwill - what exactly is this, from what i have read my understanding is its a lump sum paid as you are taking on the customer base from the previous tenant. with my concept i would be starting fresh so would not be looking to take on a existing business, therefore is this a negotiable point.

equipment - i would prefer to have second hand equipment to keep costs low, any recommendation of reputable sites for reconditioned equipment- or would i greatly benefit from buying brand new

shop fitout costs - How can i get a rough quote on shop fitout costs.I know how i want the shop to look as there are already similar businesses open although not in the location i am looking at . I have contacted a few shop fitoutters and have been told before they can provide a quote i would need to own a shop and provide drawings - what i dont seem to understand is if this is the case how can anyone gauge how much the total investment will be prior to opening the shop, there must be another way. or not.....

i do have a bunch more questions, but one step at a time. any help would be highly appreciated.

Many thanks all

 

[Deleted member 283937]

Hi
To answer some of your questions.
Rent, what you need to be wary of is the lease. Use a commercial solicitor so you know exactly what terms you are signing. The longer the lease the greater the resale value. Unless, you are inside the act and you have the right to renew. This is would be the best option.
Premium/goodwill, really what you are paying for is how good the location is. As well as fixture and fittings. Everything is negotiable, its just settling on a sum someone is happy to sell their business for.
Equipment, Ideally there will be some equipment in situ. I don't have any experience of buying reconditioned equipment. But there are catering equipment auctions. This maybe somewhere to start. Otherwise look at Nisbets for buying new equipment.
Fitout, How long is a piece of string? Depending how much infrastructure you need to put in, plumbing electrics etc costs will vary. But 100k entry level would not be too far off.
Best of luck with it.

 

[The Byre]

@Cafe Course has answered your questions admirably. I would only add that if you are opening a physical (i.e. B&M) business, you are either one or the other side of the real-estate business and buying the freehold is always the best option, if possible.

Fit-out costs, yes £100k for a 'wave-your-wand' turnkey project. If you roll up your sleeves and get stuck in, £50k is enough for a small-to-medium sized operation.

And used kitchen equipment is a mug's game. It's on the open market for a reason - it's clapped out and won't last six months! Buy new and buy from Nisbets. (A friend of mine ordered a whole restaurant of kit from Cater-Quik, who were slightly cheaper and they took his money and delivered three months later - he ended up spending many thousands in rental fees until his stuff arrived!)

It takes about one month of careful planning to design a kitchen and dining area and price-up the whole thing.