Landlord & Property Developers
We assist Landlords and Property Developers through a range of services, including evaluating potential tenants, conducting comprehensive assessments of current tenants, and delivering continuous consulting support to enhance restaurant operations and maximize profitability throughout the management tenure.
Many independent restaurant operators lack the extensive experience, brand recognition, financial resources, and strong credit profiles commonly associated with national and multinational chains. The prevalence of independent operators also means an increase in operators who, while perhaps lacking experience, are by no means lacking in talent. This influx of less experienced restaurant operators introduces heightened risks to your restaurant portfolio.
However, it's important to recognize that despite these risks, brick-and-mortar restaurants remain a fundamental and enduring component of the business landscape. They play a vital role in driving foot traffic, especially beneficial to adjacent brick-and-mortar retail establishments. Additionally, they offer essential amenities for office tenants in mixed-use developments, contribute to the creation of a unique sense of place within a property, and stimulate economic growth and development in the surrounding submarket. After all, people will always have the need to dine out.
Engaging a third-party restaurant consulting firm is a strategic move that can empower your restaurant operators for success and rescue struggling concepts - particularly those with potential. This consulting fee can be seamlessly integrated into your tenant improvement allowance, providing a clear path to a promising return on investment.
It's important to acknowledge that landlords, while experts in real estate, typically lack the specialized knowledge required for effective restaurant operations. Moreover, navigating the intricate landlord-tenant relationship can be challenging. Even when landlords offer valuable advice on running a restaurant or building a strong brand to drive foot traffic, it often goes unheard. Few landlords are fortunate enough to possess in-house food and beverage experts who can provide structured guidance to restaurant operators. Even with such expertise, they may still encounter limitations in understanding the dynamic and ever-evolving landscape of restaurant operations and current industry best practices.
For landlords, enlisting the services of a reputable restaurant consulting firm like Jimmy Carey can make a significant difference. It can mean the contrast between dealing with unpaid rent, messy evictions, unnecessary legal expenses, and negative publicity - all of which can harm the property's image and the landlord's reputation. Alternatively, it can lead to outcomes such as increased foot traffic, improved percentage rent collections, favorable underwriting during property sale, strengthened tenant relationships, and more.
Lease-Up
When assessing potential tenants, landlords often have their unique due diligence processes, evaluating factors such as the operator's track record, creditworthiness, budget, financing, business plan, and fit within the property. However, due to limited knowledge of restaurant operations, landlords may struggle to fully gauge a prospect's potential and alignment with the property.
Restaurant consulting firms like ours can play a crucial role in filling these knowledge gaps and identifying the right tenants. Through a comprehensive assessment of each prospect and their concept's viability, these firms leverage their industry experience and expertise to enhance the landlord's chances of securing a long-term lease with a strong restaurant operator. Such operators can drive sustained foot traffic and value to the property.
New Concept Management
When dealing with inexperienced restaurant operators, landlords should exercise caution when considering the initial budget. Without guidance from seasoned restaurant professionals, these budgets often amount to rough estimates, significantly underestimating the required capital for a successful concept launch and operation.
To address this, a reputable restaurant consulting firm starts each new concept with a profit model. This model encompasses startup expenses (such as architecture, construction, interior design fees, FF&E, training, marketing, and more) and operational aspects, forming the basis for the business plan. This approach not only charts the course for the restaurant's long-term success but also clarifies the utilization of the tenant improvement allowance.
For landlords, understanding the profit model serves a dual purpose. It provides a vision of how the restaurant will thrive as a tenant throughout the lease's duration and offers insights into using the tenant improvement allowance effectively. Unlike office tenants who may enhance their workspace for employee productivity, restaurants heavily rely on their physical environment for immediate revenue generation. Thus, scrutinizing the allocation of tenant improvement funds is paramount.
While some restaurant operators may only require initial consulting, many benefit from ongoing support, including collaboration with designers, architects, equipment specialists, menu engineering, pricing strategies, and staff recruitment and training. A restaurant consulting firm becomes an invaluable partner in every stage of the restaurant's journey, from launch or recovery to potential sale.
Existing Concept Recovery
When an existing restaurant operator faces challenges, landlords may encounter issues like outstanding accounts receivable, write-offs, reduced percentage rent collections, evictions, legal expenses, and a potential negative impact on co-tenants due to decreased foot traffic and a bleak perception of the property.
The underlying problems could range from simple to complex, including mismanagement or flawed marketing strategies. Each restaurant's situation is unique, akin to diagnosing a patient's condition. Without the expertise of trained professionals, it's challenging to accurately identify the issue and provide an effective solution.
Engaging a restaurant consulting firm is akin to seeking a medical professional's opinion for a patient. The problem could be as minor as a scratchy throat, requiring a simple remedy, or as severe as a life-threatening illness with a limited prognosis. In either case, a professional restaurant consulting firm can diagnose the situation and prescribe the necessary measures to address it effectively.