Restaurant Property
A restaurant’s success is often dependent on its location. Restaurant’s that are located near other restaurants can enough synergistic benefits due to their location (Parsa, Self, Njite, & King, 2005). However, choosing the wrong location can also spell certain doom for the establishment. In general, restauranteurs must ensure that they are making enough profit to justify the demands put forth by their landlord and the local government. For this reason, the restaurant’s deed or rental agreement is one of the most important document in determining a restaurant’s fate. This paper seeks to examine the issues associated with leasing restaurant property; in particular Harlequin and Brine, an upscale casual restaurant.
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Purchasing the property allows the owner to benefit from equity, avoid landlord-tenant issues, and eventually benefit from a paid-off mortgage. However, renters have a wider variety of locations to choose from, and avoid the liabilities and obligations associated with owning the property (Willerton & Grandfield, 2013). Most importantly, 95% of commercial spaces are for lease instead of being for sale (Willerton & Grandfield, 2013). Furthermore, many restauranteurs simply cannot afford to buy a property outright. Due to availability and cost requirements, Harlequin and Brine will lease a property instead of buying …show more content…
Restaurants have their own sets of unique obligations that they must face. Most states will require that the establishment be accredited as food service establishment. This will impose several requirements related to the building such as textiles, flooring, ventilation, storage areas, and even the number of exits that the establishment has (Mealey, 2016). Another important aspect to consider is whether or not the establishment will be permitted to serve alcoholic beverages. Through the combination of landlord, city, and county, many properties are not allowed to serve any alcoholic beverages on the premise (Mealey, 2016). Restaurants must also examine their lease agreement and local zoning laws to confirm they can indeed be open during their preferred hours of operations. Within the lease, a landlord may dictate the business’s hours of operation (Levey, 2017). Furthermore, many cities and towns had historical blue laws that prevented businesses from opening on certain days of the
There was a trend in rise of the net property & equipment related assets since 2002 to 2004. This boost in net property and equipment assets was related to the acquisition strategy conducted by Applebee’s. For the $34 millions acquisitions of 21 restaurants in Washington D.C. area on November 7, 2002; $24 millions has been allocated to the fair value of property and equipment plus $10 millions in goodwill. This has caused a jump in net property & equipment assets for 2002 to jumped 16% and Intangibles assets to jumped 12% when compared to 2001. Since most of the purchased are by cash, this has caused a 31% decreased in the Cash & Equivalents for Applebee’s balance sheet. For the 11 Applebee’s restaurants acquisitions in Illinois, Indianan, Kentucky, and Missouri for $21.8 million on March 24, 2003, $7.9 millions were allocated to the fair value of property and equipment, the other $16.6 millions went to goodwill, plus a net liabilities in additions of $1.3...
Our team has been instructed to help advise on a business case involving a restaurant, The Mongolian Grill. It’s owner, John Butkus, is contemplating renovations, in hopes of adding capacity and increasing revenue. There are several scenarios that are available to him. One option is to add an extra food bar. The second option is to move the location of the cooking area. He can also implement both options, if he so chooses. Our team has done the appropriate financial calculations, as well as qualitative considerations.
Senior Management of PepsiCo is evaluating the potential acquisition of two companies – Carts of Colorado and California Pizza Kitchen – in order to expand the company’s restaurant business. If indeed PepsiCo decides to pursue the acquisition of one or both, they must decide how to align each of these business units in its historically decentralized management approach and how to forge relationships between the acquired business units and existing business units. In their evaluation, Senior Management is faced with the question of whether the necessary capital investment in order to purchase one or both of the businesses can be profitable for each of the acquired business units, but must also take into consideration that the additional business units will not hinder the profitability of the existing business units.
Accommodating customer requirements in most supply chain arrangement requires a forecast to drive the process. (book page 133) When looking into the definition of forecasting which is projecting what is going to be sold (units, seats, rooms etc) it is also important to take into consideration where and when in order to reach the future goals. (book page 133) Since it is argued that effective supply chain and logistical capacity is an important competitive advantage. (Christopher 2005) Where maximizing the revenue is the key element in hospitality sector and for hotel industry there is an increased attention on effective demand management and forecasting for reservation systems. (http://www.sciencedirect.com/science/article/pii/S0169207002000110)
I would delegate the responsibility of finding the most appropriate restaurant to my associates. The most appropriate need not be the most expensive. However, standards still have to be maintained. Once a thorough research has been conducted and the results handed in, I would make the final decision, putting in mind specific aspects of the suggested
When someone makes the decision to buy or rent a home they must consider the advantages and disadvantages of each. In buying a home the primary advantage is that you actually own it. You can do whatever you want with it. Also, you are building equity as the years go by. “People today have problems saving for their future” (CNN Money, 2014). However, when they buy a home, the money they put down for a down payment is an investment. When the person sells the home they get back the down payment and the amount the property has appreciated in value. When looking at the advantages of renting it is easy to see the disadvantages of buying for some people. Even though you don’t get the money back that you put into it, renting could be a more satisfying option for some. This is because renting allows for flexibility. The person can move wherever as soon as there lease is up. Renters may see buying as “a reduction in lifestyle, moving to a smaller place, and perhaps a less expensive neighborhood.” (CNN Money, 2014). For example someone who rents an apartment enjoys how the complex keeps up the area and all the amenities it has to offer, and it is in an upper class part of town. However, when they buy they looks all the benefits, they have to do maintenance themselves, and move to an area they don’t particularly like to fit their price range.
1. DON’T overextend financially when buying a franchise. Never, never buy a business that you can’t afford – it is the number one reason that businesses fail. They simply run out of cash to operate and advertise before they have enough customers and cash flow to support the business.
1. To what extent are LeasePlan’s efforts consistent with recommendations derived from Alice Eagly and Linda Carli?
Editorial. Nations Restaurant News 11 Nov. 2005: n. pag. MasterFILE Premier. Web. 5 Mar. 2013.
The restaurant Lot88 is a very nice place to go eat. There is a steakhouse, a bar, and many great types food. It is situated on 1700 Kingsway in Sudbury owned by John Law. It is a franchise buisnes. It is the former FionMaCools and known for its amazing soted cooked steak. I ate at this restaurant in December with a large group of poeple.
The hospitality is taken from the term ‘hospice’, meaning a house of rest for pilgrims during medieval times (Grottola, 1988). Hospitality may be defined as the reception of guest and catering to their needs and expectations, these may include food, beverage, lodging, and transportation, activities/Entertainment, shopping and supporting services. Hospitality entails a mixture of tangible and intangible factors that include the behaviors of employees and make available for guest’s security, psychological and physiological comfort (Brotherton, 1999).
Understanding the basic agreements and variable in the franchising process of a McDonald’s restaurant helps to shed light onto how the company has become such a global power in the food ser...
More hospitality management positions are being taken by graduates of hospitality management programs than ever before. The holders of
In spite of a developing of the quality of cutting edge, incorporated frameworks, numerous properties still don't exploit them as completely as they may to expand income good fortunes. A lot of people likewise neglect to help and secure them to the degree proper to the worth of their information and to the legitimate outcomes of that information getting to be stolen or defiled.- -Hospitality administration framework have advanced into refined, decently coordinated, multi-control devices equipped for helping properties of numerous sorts and sizes that draw in more visitors, produce more income and achieve greatly enhanced levels of proficiency.
Inspired by my heritage, I have decided to model the overall atmosphere and architecture of my restaurant on Jalapa, Guatemala; a place I have visited numerous times and hold very dear to my heart. I would like to have authentic and accurate cooking from my family’s place of origin, to assist with the positive vibes brought on by food. Although I haven’t been in recent years I certainly have not forgotten the colorful buildings, kind people, and amazing structures and places I've been to and had the pleasure of witnessing with my own eyes. One such place that I have visited within Guatemala's bounds, is the Tikal national park, home of the great mind-boggling Mayan Temples.