I have been trying to open my own restaurant for 3 years now. I had 3 failures. In all 3 I represented myself and dealt with the owner/owners agent myself. What I learned is, though I know how to run a restaurant, I havent a clue on how to get into one.
I either negotiate in an unreasonable way, ask for too much, and in one case sold my concept so well, he decided to open it himself.

I realize now, I need someone on my side. Problem is, the 1st guy I picked, Ive already had to fire. He obviusly didnt need the business or was just lazy.
My wife is a member of BNI. She got me a referal through a referal. I told the guy what I was looking for:
*A "dark"(a closed restarurant)location.
* A retso that had a Hood system.
* A resto where I could sell beer and wine. (cant sell booze within a certain distantance from a school.)
*Was looking for 2000+ sq ft.with 4000 being as much as I would need.
*my lease monthly aim was $4500, top end (unless it was a true turn key place).


I even went on-line and emailed him sites had interest in.

I told him I want to open several locations, and wanted to develop a long term (profitable) relationship.

He blew off our 1st meeting at the last meeting with, "I got a late start on my day". I then asked him to send me his top 3-4 sites he had researched...he mentioned one (which was one I sent him from Loopnet).

I canned him.

I swear, all I want is someone that will fight for me. Someone that will get me a strong lease, and negoiate out upgrades, etc.
I understand that every penny he'she saves me on my lease, speeds up getting my 2nd store up and running. This is a HUGE hire...just cant seem to get it right.
I am looking for advice on how to find that right agent, thats willing to help me. Hell, I dont mind even setting up incentives, to put more $$ in their pockets.

I need help hiring a agent. How do I do this?
I welcome any and all advice, ideas, and feedback.
Thanks in advance,

Gravy

Well gravy it's all about WHERE you are located that you didn't mention/ I was in the restaurant industry for over 10 years before going into real estate. I understand the restaurant business up and down.

Both sides broker and client have to set REALISTIC UPFRONT negotiations.

When I schedule clients in I am working with that client at that time. You can't expect someone that's any good to jump at the drop of a hat.Good commercial brokers are in high demand.

What they should do is meet you for lunch to go over specifics. Many tenants are having a hard time running sales based operations and making the rent.

You need a professional in your area.Look on national restaurant news. Maybe you will find someone on there.

[quote=super realtor]Well gravy it's all about WHERE you are located that you didn't mention/ I was in the restaurant industry for over 10 years before going into real estate. I understand the restaurant business up and down.

Both sides broker and client have to set REALISTIC UPFRONT negotiations.

When I schedule clients in I am working with that client at that time. You can't expect someone that's any good to jump at the drop of a hat.Good [color:#FF0000]commercial brokers are in high demand.[/color]
What they should do is meet you for lunch to go over specifics. Many tenants are having a hard time running sales based operations and making the rent.

You need a professional in your area.Look on national restaurant news. Maybe you will find someone on there. [/quote]





[i]really? I'm in Orlando and for every new business I see opening, I see 10 "for lease" signs.

I do not expect any one to do anything at "the drop of the hat". I do expect that if we schedule a lunch, I dont get a "lets see how it goes" to my emailed question "what time and where" the night before...then to have the guy cancel in the morning.
I established upfront what I was looking for. That was someone to negoiate hard with the owner on my behalf, and to work hard for me. I even asked the guy "If you're too busy to handle the listed expectations, its cool, just let me know". I said up front I wanted someone that was "hungry", and was willing to fight for me. He said he was hungry and was the guy to make it happen. He didnt follow through.


I am not trying to get into the whole "client Vs. Agent" debate.
I know I'm a little fish right now. I'm looking for a $4000-$5000 a month restaurant. I'm not expected to be treated like a king...just say what you are gonna do, then do what you said.

I would like an agent such as yourself to help me land a guy like you (who I presume is talented).

I can run the hell out of a 4 million dollar a year restaurant, hire and train the staff for said store, but with this, I'm a pre-schooler.

My question:

How do I go about hiring a Commercial agent to find sites, and negoiate a lease on my behalf? Remember, I dont know what you do. Thats why I'm here, to learn.

Thanks.[/i]

I am in Ga so I couldn't help you.

I am more on the land development end of things.(Where I sell the land and work with developers building retail,shopping centers,etc.)

I do some leasing but mostly leases are on the property management side after the building is constructed.

Just because there are signs that are for lease does not mean the landlord is desperate.Some are very wealthy and will let it sit then give in to a future tenants long list of requests.

Also if you want alot of buildouts,low rent etc. The landlord might decide it's better to take a tax writeoff loss for lost rent and let it sit vacant. Usually with landlords if they agree to a reduced rent the smart way is to only let the tenant have the 1st year reduced below market. Then escalate the rent each year thereafter.

If they rented to you at a long term say 5 years with a locked in low rent rate it would be good for you but horrible for them. What the landlord can sell to someone for is based on cash flow and if the tenants are locked in for a long time at a low price not many buyers will pay what the landlord wants to sell for.

Credit is also considered when renting to tenants. If you were already a credit rated tenant well established then the landlord would be more likley to do a buildout and take the risk. As an unknown you really don't have much bargaining power.

You might have luck with an older building say class b or c (10 years or older in a semi-good location) but you will not have much luck with class A space in nogeotiations (newer building with the best locations)

Really without being in that are and seeing your individual circumstances it's hard to speculate.

As a previous restaurant owner myself have you looked within your possible site locations how many SIMILAR restaurants are in the same area (say a 3 mile radius)

You know when you open the door people aren't just going to come flooding in. The economy is bad and when that happens major restaurant chains run all kinds of specials to maintain market share. They have millions in the bank and wait for the economy to go up before raising prices again.

You will have to buy food from suppliers and since you can't buy in the quantity they can your profit margins will be alot smaller as you will have to be price in line or less than them to get business.

If you have been trying for 3 years either your deal you want is unrealistic or they don't want to take the risk on you.

Why don't you get a capital partner to bankroll you and buy a vacant building on a good corner. If the restaurant fails late ron you can sell the corner commercial site for a nice chunk of change. If you lease your costs are always going up and traffic will decline as newer centers open up down the street.

Hope it helps.

Good stuff, man. Keep it coming.

As to a view of your points.

*Taking a tax write off is equal to leasing a space? If so, thats crazy. I'd think (again I know nothin of realty) getting a check from a tentant would be more profitable than waiting for a tax write off..

*I'm with you on the "class B" sites. Thats what I'm looking at as a starter local. I dont have a big budget so, I have no choice.

*As to my concept, there isnt one like it (that I have found in Florida). I been in the Rest biz for 35 years and have done everything but own my own place. My concept is built for this new economy. Notice the high end places are dying first and Golen Coral is running TV ads 24/7. Everybody is downsizing. I'm a butcher as well. I'm gonna cut all my own meat (beef, pork, chicken, fish) naturally that saves $$. I'm gonna run a Grill heavy concept. I will used a Hickory fired, lava rock, gas powered broiler using a fantastic baste and sesaon. My veggies will be southernm seasonable at every oppurtunity, and cheap. Dessert will be Seasonal cobbler and a few other great food cost items. Anyway, I could go on for pages about how I'm gonna step into the gap this economy has left, but I dont want to bore you tp death. Leave it to say you will be able to have a 12oz Choice Ribeye w/ 2 veggies for %16.95. I will nenture to say I'm as good at restaurants as you are at real estate.

*as far as the "If you have been trying for 3 years either your deal you want is unrealistic or they don't want to take the risk on you.
My wife and I had kids and we decided against daycare. My wife has her own law firm, and I was a resto manager. I been Mr. Mom for these last 3 years. The 3 deals were shots (I have a partner)getting me back in the bizz and my wife back mat home. You probably have a point about me asking for too much...hence me needing a Agent to guide me.

*A bunch (I'd say most) of these restos failed for the same general reason houses go into foreclosure. These food guys signed crazy high leases, and when sales dropped, it sunk em.

Here's my take. There is a huge (and growing inventory of"dark" restaurants. I believe most want tenants. between me and my partner we got 50 years in the biz, good credit, and wives with good jobs. God willing, I'm gonna find me a agent to sell us to the owners, and get a solid lease. By summers end there will be a whole lot more empty restos. I'll get a strong lease. Unemployment isd high, so my labor will be low. I'm gonna hopefully find an agent to set me up with a fair lease. I'm gonna make some $$, open some more stores and retire early.

Thats the dream, man...but I'm still missing my Commercial Agent..shoot, I'm willing o even offer him bonuses based on his negoating success.

Keep the info coming, friend. I'm learning from this.
P.S excuse nmy spelling/grammer, I was educated bin Ga.