Monday, February 1, 2010

Avoid A Tragedy

This blog has also been published by Food Week magazine view at http://www.foodweek.com.au/Default.aspx?tabid=53&ID=6391

You have an idea!
So you want to own a restaurant? You have lots of ideas. You have a clear vision of how you will look in your successful restaurant. But be aware there are processes and time frames to achieve that vision.
Where will you be situated?
How do you want your restaurant to look and function?
How much will it cost?
Where can you get commercial catering equipment?
Who will know how to build it?
Do you need a design?
How will you communicate your idea to everyone?
There are questions to be asked that you haven’t even thought of yet. Avoid a tragedy.

Let's go back a step.
You have chosen the site and realise you need to build your restaurant but you haven’t got a lease yet. There are some steps you can take to get to a ‘happy’ lease for all 3 parties.
1. The landlord: wants to see you pay rent
2. The leasing agent: wants to see a signed lease agreement and happy customers.
3. The tenant (that’s you): wants an affordable lease that gives you security.
Everyone wants to sleep well at night.
One of my professional contacts from a renowned commercial leasing group says that agents work very hard to be the glue that brings the tenant and landlord together for a successful long term relationship.
“We want to see the tenants succeed so that the landlords are also successful. We endeavour to find a good fit on both sides”.

Before you sign on the dotted line get a qualified foodservice designer to check out the site.
Look for a designer who is qualified and has the knowledge and expertise of
  • Health department regulations
  • Building and plumbing standards and codes.
  • Council regulations and approval requirements
  • How a project is constructed from the ground up
  • Above and underground construction requirements
  • Catering equipment usages, demands and outputs
  • Installation specifications
  • Work flows, OH&S, food safety / HACCP.

 Find someone who is independent and not subsidised by another business or swayed by brands or marketing.

Here are some things a qualified foodservice designer will consider as part of the site appraisal process.

1. Check in the basement to see if there is somewhere to put a grease trap which is required in most food establishments.

 2. Check the ceiling and roof line to see if the mechanical exhaust ventilation ducting can penetrate out of the roof.

 3. Check the existing local council approved use of the site and make sure there are no conditions or restrictions in relation to the use of property.

 4. Check the electrical supply of the site to ensure your catering equipment runs at full capacity during your busy times.

 5. Check the line of property boundaries to ascertain the necessary information to make sure that your designs will comply with many local and Australian standards.

This list is just an example of the information your designer needs to provide you with effective designs to assist you to manage costs and mitigate risks during the project.

Mr Ujwal Singh owns multi Nando’s franchises. His latest is at Kelvin Grove. The property is a corner block landlocked with other tenancies to each side, residential units above and council footpaths directly in front. The design of the overall building allowed for an exhaust duct riser which would have suited most potential tenants. However in a Nando’s store, their specific exhaust canopy size quantities and capacities meant that the building duct was undersized for this franchise. It just wouldn’t work.

This site needed a unique solution: A high velocity canopy was selected. Then the shop front was designed with air intake vents to take make-up air to the face of the canopy. These simple solutions have meant that the Nando’s system was able to be designed and built within the constraints of the tenancy without cost surprises popping up during construction. Nando’s is operating successfully.

Now back to the lease.....

Now that you are more informed I suggest you have another chat to the landlord.

Landlords may factor these costs into your lease. Use your new found knowledge of the site as leverage for a cheaper rent, more space, written guarantees, landlord cash contributions.... the list of leasing opportunities goes on and on. Get a conversation going.

A good landlord should be helping you to set up for success not failure. After all it's the long term rent that he's after.

Now go ahead; sign the lease and get moving on your designs.
Finding solutions to these design issues before you start can save you thousands of dollars....even tens of thousands. I'll bet you didn't have this in your budget.

 Your 'plan' or 'design' is the communication tool you use to keep everyone on track and to understand your restaurant design IDEA as you move forward.

If you are a foodservice business that draws a crowd, the landlord will love you - it's now easier for him to lease the other surrounding sites. Your business just became the star attraction.
 
Remember: there are many facets to a successful food operation. Starting with a lease is just one of them.

Happy lease signing and designing!

Chris Green http://www.foodstrategy.com.au/
http://www.foodstrategy.com.au/