March 2019 – It's all about people meeting people

Discovering a prominent location for a new cafeteria offers many challenges. Is it a reasonable size? Is there sufficient traffic? Can you afford it? What is the owner like? Does the location have a record of failed cafeterias?

Here are tips to help you find just the proper place for your new cafe.

Do Your Restaurant Market Research

Before you even begin looking at any kind of restaurant space to rent, firstly do your homework: is it the perfect area to open a new restaurant? Knowing who your possible customers are and where they reside will assist you to tailor your restaurant idea accordingly. Conducting market research for a new restaurant, because it can inform you of the income range of a possible restaurant location. Will there be adequate people, with fairly expendable income, to contribute money at your new restaurant? If the response is no, then move on to a different location.

Be Flexible When Looking at Restaurant Spaces

Restaurant spaces appear in all shapes and sizes, from teeny little hole-in-the-walls to big sprawling cafeterias. You apparently already have a genuine idea of the type of restaurant you desire to open, and what it will look like indoors. Nevertheless, the perfect space may not, at initial glance, be what you envisioned. So be prepared to redesign the restaurant in your head to fit a vast space. Bear in mind, more often than not great restaurants don’t make a location, a location makes great restaurants.

Do a Landlord/Location Background Check

Once you’ve picked a cafeteria space, discover as much as you can about your possible new landlord. If there are other businesses in a similar location, ask different business owners if the landlord is easy to operate with and if he addresses obstacles quickly. You can moreover ask about the pros and cons of the location, as well as their opinions on a new restaurant going into the building. Of course, take everything other renters say with a grain of salt. If they believe a restaurant is a fantastic idea, learn, it’s their opinion, not an actual fact.

Know Your Budget

You may discover the perfect place to open a new restaurant, however, if the rent is out of your budget, don’t get extremely attached. Just like you wouldn’t rent an apartment you couldn’t afford, the equivalent is true of renting a restaurant space. The initial years of a new restaurant are normally pretty tight, financially so over-extending your budget before you are even open isn’t a good idea. However do in keep in mind that restaurant rent can be negotiable, which guides us to…

Don’t Be Afraid to Haggle

Possibilities are your proposed landlord doesn’t want his or her prime real estate vacant for long and may be ready to haggle at the cost of rent. General rent negotiations for a new restaurant involve not paying rent at all until the restaurant opens for business, pro-rating rent. You may spend a very low rent the first year of the lease, then slowly raise it each year thereafter.

Know What’s Included With Rent

Is heat, water, electricity covered in rent? What about garbage removal, building repairs, and general maintenance. Your cafeteria rent should specify specifically what expenses your owner will cover, including any required renovations, and what expenses your restaurant (that means you) will be responsible for paying.

Related Post: Why Is The Popup Retail Trend Better?

Have an Exit Plan

How long is your restaurant lease for? Two years? (good) Five years? (hmmm) Ten years? (run away). Before that, there are also shorter options for you. From a few hours to a few days or a week. You can have your restaurant set up and try if it is the perfect location for you. Myrsa is an online platform that provides you with different locations for short term renting of your restaurant. Test different markets and then choose the one that is perfect for you before investing so much on your rent. You can find your ideal cafeteria space on rent on this platform.

No one desires to think concerning their restaurant closing, at least not before they are even open, but the fact is, a majority of new restaurants stop within an initial couple of years. So, if for nothing else but for the calm of mind, keep your lease as small as possible. If things are going along smoothly after year two or three, then sign on for a longer lease.

As the technology changes so do the beliefs of the people and businesses. Current technology is fast and wants to cover a large kind of audience. This transformation has caught the eyes of new businesses everywhere. Whether you are a traveller, a businessman, a landowner or a homeowner you would have noticed that everyone is travelling at a swift pace right now. This has led to the emergence of short term rentals. This has also led to a change in how people generate income and how they will, for future prospects, invest in their businesses.

From the retail industry to real estate, experience has become the most significant part of any business to provide. In search of new experience, travellers have been emerging and adding to market growth. This has led to the growth of the economy in double the rate. As more and more travellers are rising the food and beverage industry has also been growing a lot. Studies show that 44% of people prefer eating out. For this, your business needs to be where the people are. This expanding demand, audience size, sections, and competition have ended in the progression of consumer behaviour, preferences, and expectations, triggering an entirely new set of global, digitally related possibilities in the hospitality marketplace.

Airbnb is leading the market by having more than 4 million properties in over 65,000 cities, combining more than top 5 major hotel brands.

So What are short term rentals?

Short term rentals are usually based on the time length of renting a particular property. Vacation rentals are a kind of short term rental. Also, this has gone as far as even renting out for commercial properties. The acceleration of pop-up shops in malls an even commercial complexes has made it prominent. A short term rental typically starts from a few hours and goes up to a few days.

The flexibility of the short term renting makes it suitable for the tenant. The properties provide you with all the amenities that you need and help you in cost-cutting. For the landowner, they can increase the price of property whenever they would like and also rent it out on a time that is suitable for them.

Platforms that are based on Short term renting-

Airbnb- Your Vacation Rental Platform

Find unique places and experiences with this website. This is a platform that can be used to rent out homes for a short period of time. This platform has grown so much in just a small period of time. You can find all the different types of stay rentals in different areas. It has now become a Millenials favourite spot.

We work- Coworking and office space

It has a global network of workplaces that you can rent for a short period of time. Meeting rooms, office spaces, private office, conference rooms and also event spaces can be found on this platform. Find comfortable shared office spaces and keep the work going.

Myrsa- Temporary Renting of Vacant Spaces

Myrsa.in has everything that we work has and much more. This is a website where you can find short term renting of commercial spaces whereas you can even find a retail or any kinds of spaces for any kinds of activities. Here the renters can rent out any extra space to the brands that would require them. The most popular spaces would include parking spaces, garden areas, clubhouses etc. Brands can use these kinds of spaces for any of their promotional activities or people can use these spaces for events or celebrations of all kinds. Spaces for popup shops in malls or kiosks spaces can be easily found over here. It has a vast variety of activities and also a huge variety of spaces. You can visit the website to know more.

Growth Drivers of Short Term Rentals

The rise of the Sharing Economy: Retail space sharing isn’t new. Sharing economy means to share or rent out something that is not in use. A property that you own but there are some spaces that are of no use to you or they cannot even generate any income for you. Some of the businesses selling complementary products end up sharing more than just the space. These spaces can be of use to many other businesses even the smallest of vacant spaces can generate you income. Utilizing them for generating extra income can be a great idea. There has been a lot of growth in these types of economies in different sectors like travel, car sharing, rent sharing, finance etc.

Flexibility: Short term rentals are extremely flexible. In many cases, they start from a period of a few hours and can go up to a few days. Vacation rentals are of a similar kind and if you are a commercial property then you can rent them out after hours or on the weekends. It is up to you to decide when you can rent out the property and this makes STR one of the primary reasons for renting. Seasonal brands, seasonal cafes or and many other retailers can make use of the STR and have their own shops set up everywhere.

Value for Money: The average cost of a vacant property on a short term basis can generate a lot of income than what a long term investment would give. With a wide selection, from places with high visibility to a small space, affordable places have become easier with the STR properties. They are now becoming primary choices for many.

Rental Property Investments: The preference of the millennials and the generation x demographic for rental properties over ownership has succeeded in rising rental yields and sustained demand growth for investments in real estate rentals. Also, pop-up shops are a trend that millennials intend to follow.

Popup-centric Technology Platforms: Popups are becoming extremely popular to reach out to different audiences. Millennials love this idea and brands want to impress the millennials through this. Every brand needs to have its own pop-up shops in different places. Testing out markets becomes easier through these platforms as you can have different popups in distinct areas for a short period and find out which one is the best to invest in. Also, the phrase “here now and gone tomorrow” makes it more desirable for the consumers.

Wider reach: Business owners can easily increase their brand reach with the STR programs. You can open up a number of shops at a point of time and it helps you grow further with your audience. You don’t actually need to have to invest in the property essentially, but can still have your brands at all the different places.

The STR marketplace has brought a change in the definition and meaning of property ownership by disrupting the long and traditional way of hospitality. This has given a new way to earn income from the real estate ownership business. It is now a thing that no one chooses to ignore and adapt it to their business as soon as possible to make the most.

Adapt to this new way to carry out your business and utilize all your spaces to the fullest by monetizing them!

Month: March 2019

How to find your ideal Cafeteria space for rent?