The Restaurant Dream?
 


Below are some of the questions I have received from readers of the book, and answers to those questions. If you have a question that is not listed below, feel free to e-mail it to me. I will be posting a selection of the questions and answers that I receive.

Reader Comment: I asked the landlord for a space I was considering about the method he used to calculate the square footage listed in my LOI. He told me that he used the outside dimensions of the exterior walls. I challenged this, and in the end he agreed to use the centerline of the exterior walls to calculate the space. This saved me about 180 square feet, or a little more than $5,700 a year in rent and CAM.

Q: The budget that you shared in the book for construction seems very low compared to some of the quotes that I have received on a restaurant of comparable size, why is that?
A: There could be a number of factors. The most likely reason is the dramatic increase in construction costs over the past few years. Several contractors that I have worked with estimated a 30% increase in cost of materials in 2005 alone. The restaurant in Maitland was built in 2003. Since you are inquiring about a restaurant in the Southern United States , you may also be experiencing higher than normal labor rates due to the shortage of labor in the region. The geographic location of the restaurant can significantly impact the cost of construction. Additionally, although the size may be the same, the requirements within the restaurant may be drastically different. Site specific conditions could be another reason costs are higher.

Reader Comment: In your next book ... you can advise people to look at who their neighbors are, or might become some time in the future, as adjacent space turns over, before picking a location. I have been in three, what would have otherwise been very nice restaurants, that had locations right next door to nail salons. The smell of the nail glue coming through the vents was enough to knock you out. And, extra fans is NOT the answer. The in-store venting was a health hazard, to say the least. The A/C and heating systems all interconnect The landlord should have been shot! This belongs in the lease. Never move into a location with empty spaces next door without inquiring about them first!

Q: Your level of involvement in day to day issues during the construction phase is much more than I had anticipated. Are most owners that involved in the day to day construction, or was your involvement a result of your profession?
A: In my experience, the more involved an owner is in the process, the better the end result. Is it the job of an owner to have to be as involved as I was in the day to day construction effort? In most cases, no. However, there are always conflicts on a construction project … always. Some owners focus more on figuring out who is to blame when something goes wrong. Typically, this takes as much (if not more) energy than jumping in and helping to solve the problem. I would recommend that every owner remain as involved in all phases of the daily development process as is feasible. This level of participation may not be required, but it consistently yields the best results.

Q: I am looking at leasing a potential space. I asked my landlord for plans of the space, and he provided me with something he was calling lease outline drawings. Are these sufficient?
A: In most instances, lease outline drawings are a good place to start, but they likely will not be sufficient for your design team to begin the process. In many instances, the lease outline drawings will not provide accurate wall and column locations. Rather, they often show the exterior shell with only a single line indicating a possible division of the spaces. The division of individual spaces within a landlord's development may be subject to change following negotiations with each tenant, either during initial construction or during the life of the property. The tenant's architect will typically have to develop an architectural base plan for the rest of the design to use. This base plan will accurately reflect the walls that outline a tenant's space, which are also referred to as demising walls.






























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