So we have been in our current building 3 years and i think we have out grown it, and the parking is horrible.
We have no parking and it really limits our dine in, we are maybe 5% dine in 75% delivery and 20% carry out
We are on the side of busy 2 way street with a city parking lot across the street, in order for dine ins to get to the store they have to J-walk to get to our store or walk half a block to the crosswalk. Anyways i feel we should be doing way way more dine in, there is only 1 other dine in pizza shop in town and they are always busy. Our delivery business is great we are always delivering. But we hear almost daily how bad parking is or where are you supposed to park to get to your store
I have the chance to move my shop 2 blocks up the street to a stand alone building with its own parking lot and its 7000 feet with a 2000 foot diner at one end that closes at 2pm daily and its on the same exact street. They want to rent me tbe other 5000 feet for a little over 2000 a month, we would only use 2500-3000 feet and put a wall up and block off the rest that we dont need. And i have the chance to buy the building in 2 years, right now we pay 900 a month but i hate the location and customers always complain about parking and getting carryouts quickly. We can afford the new rent no problem and we do want to buy a building soon.
Id like to know what you guys think the risks of moving are, id hate to mess up what we have, obvisouly i think we can do more sales with better access and parking but im still worried about the potential loss of customers and the 3 months buildout and 50-60k it will cost to rebuild a new store from an empty shell. If we move we will add beer and maybe TVs
Please give me your thoughts and suggestions im sure im forgeting some details but ask and ill elaborate.
It sounds as if you already have decided. You keep coming back to your parking situation, and if it’s really that bad, and if you truly believe you are losing sales because if it then do it.
AFTER you’ve done a study to see how many additional sales a day average you’ll need to pull down to pay for the additional rent, pay off the build-out, and pay off any business you might have lost in the transition time.
I don’t know that I’d be too worried about building ownership at this time myself, just make sure your contracts are air tight!
WOW, your post almost exactly mirrors my current situation. and the very reason we are in the process of moving right now!
The only thing I can suggest is that you run a set of P&L projections with your increased costs and see how they come out.
Don’t forget to add in parking lot maintenance such as snow removal (if you live in that climate) increased energy costs, insurance, and all the others pertinent info and the results on the bottom line should tell you if it is feasible or not.
Can you buy your current location?..I have had clients tell me that they think they would far better staying at small location that they were growing equity in versus a larger rented premises…
Disclaimer *every situation is Unique!
This is Exactly my situation 2 years ago, Deaconvolker had been to our first location and can contest to how bad the location was. It was small, terrible terrible parking, our dine in’s were maybe 15 percent. Our build out was about 30,000. My rent, and Electric doubled. Best thing for my business. I negotiated 6 months free rent with a very friendly scale for first 2 years. (basically all my build out) I explained I was an established business that has a lot more stability than an upstart. I had less build out than a regular white box as an organic restaurant was here prior for 6 months.
THIS HAS BEEN GREAT, sales are way up, we know serve beer, our dine ins are up to 60 percent of sales! that’s a heck of increase. EVERYONE still tells me (2 years later) how much they love this over our old location and how parking was there major reason they did not come.
Sounds like a no-brainer to me too. Thoughts:
You will keep 100% of your delivery business and 100% of your take-out (you’re only two blocks away), and your take-out numbers should jump when the convenience of parking is added to the equation.
Eat-in business should increase alot, because of the great new parking and the inclusion of beer on the menu.
Lease: Like someone above suggested,I also think you could probably negotiate at least a “Buildout” period free from rent. Plus, why not at least try for a reduced first year monthly rent as a “transition period” to both retain and expand your customer base. Always try to never “leave anything on the table”—the worst that can happen is that the landlord says “no”.
Beer: If you’re going to add it, go all out. Offer many “craft” and “artisan” beers, along with most of the standard offerings. You will gain a reputation as a place that is on the “leading edge” by having stuff that competitors haven’t even heard of…and the prices that some of those beers can command will compliment your margins. Even offer 5,6,7 or more different drafts by the pint to further differentuate yourself from other pizza competitors. And don’t feel that you have to price any of the beer too low just to draw business…the public is always willing to pay for better products and a wide range of choices. And besides, what goes better with a great slice than a great brew. Finally, make sure that a beer license is available…those licenses are sometimes more complicated and costly than would, at first, seem likely.
Sounds good. Keep us informen of your progress.
we sell craft, local beers at a higher mark up and they sell twice as good as the buds and coors
Well we got it!! Not exaclty what i wanted to pay buy darn close.
We settled on 2250 a month for all 5000 feet. 5 months free rent, 3 yesr lease with option to buy in 18 months with the price already set. Landlord will paint the building and seal coat the parking lot. We are putting up a wall and blocking off about 2000 feet that we dont need and will rent out as storage or sometbing and we are spliting that extra money 50/50 with land lord. If we use it the rent stays at the 2250.
Its going to be a long summer building the new store and working nights at the old one, we are budgeting 50k to remodel but have about 75k if need be. Shooting to be moved and opened by august 15th
Heres a pic of the new spot.
If you do not or can not buy in 3 years, is there an option to extend the lease?..3 years is a very short lease with all the money and effort you will be putting in…
Yes I got a 5 year option. I already talked with a lender who knows us in town and he said there is no reason that we would not be able to buy this business.
You have no idea how much better for customers this location is, yea we may loose some foot traffic in the summer, as we were right downtown but I really thing that the locals will far out weigh the passer bys in summer.
It sucks going from 900 a month to 2250 but the rent is fair for the space and im willing to pay aittle more for a couple years in order to buy the building, my current building will never be for sale as its been in the same family since 1915 when It was built. another major factor in the move is all the BUMS and drunks next door at the biggest dive crap hole bar you have ever seen. People have left us yelp reviews saying the foods great but the bums and drunks scare us from dining in.
I feel its a good change, yes theres some risk but id I wasn’t in to risks I would not be where I am today. And my other store that my wife runs does awesome as well so we feel good about this, we could live more then comfortably off her store alone, let alone 2 stores and my store does 50% more then hers
And I guess its 5 blocks away but they are short blocks I could walk it in 5 minutes. It might be 1/4-1/3 a mile and on the same side of the street with amazing visiblilty and parking
Does anyone know if it will be cheaper power wise running a walkin cooler and two 2door reachin’s VS 9 reachin coolers?? lol
1 compressor vs 2-3 comp is always cheaper plus organization will be easier