Looking for advice: From Mobile to B&M

[JAG]

So after 7yrs of doing mobile WF I have had it up to here (hand way over head) of dealing with the aspect of working pizza outside. I am looking for a permanent spot and there is a new build that is mated to the LL hardware store that is a large local chain, the lease is 3500sqft, it is a shell, nothing, no HVAC, not even a floor, its still gravel from the original build. I got some very basic info regarding the least through a RE agent and was hoping for some input as I am green to the B&M build out or remodel.

Of the few details I got the LL is offering a 75K build allowance on a 5yr lease, The space itself is 6K/mo. and located on the main drag in our town of about 45K people, the majority of the population being very upper middle class and growing at a crazy rate. Before I get to involved and waste a lot of peoples time in chasing this new build I was hoping to get some input on new builds vs. remodels. Thank you for any help or suggestions, it is much appreciated.

John

 

[Oakland_Style_Pizza]

Hey John,

you might be able to get a little more of a response with some more info
Location, sq footage, general menu concept. You say no floors or HVAC, but what is the status of electrical and plumbing?

your menu and service style are going to dictate your kitchen and dining room buildout, HVAC requirements are going to be based on local code, but will be bigger if you are going to have fryers, open flames (burners or grills), griddles vs just having a pizza oven

6k is pretty pricey unless its a pretty big space…is it in a strip mall? what is the parking situation? is the lease gross or NNN?

I generally prefer remodels/purchasing or renting existing businesses, but that is in part due to the fact that I operate in an area where cost of construction is very high

you’ll be best informed by trying to get a sense of what the build out will cost, what you will need to spend on FF&E, and then figuring out what type of loan you will need to cover these costs as well as operating costs. You’ll then need to make a very conservative estimate of what your income will be and figure out if it will be possible to repay it. My rule of thumb is that rent should be 3-10% of revenue, but that, like build out costs will vary greatly based on area.

 

[George_Mills]

At some point you will need plans for your shop. We have designed thousands of shops nation wide. Phone Joe Mills 7344694504 He can give answer to most of your questions