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Reducing Restaurant Start-up Costs by Choosing Previous Restaurant Locations

Many restaurant chains are suffering from runaway construction costs, with some chains experience 20% or more increases in start up costs with no additional sales to offset the added risk. This often deters entrepreneurs from pursuing new opportunities or scaling their existing enterprise.  Stoner’s Pizza Joint however, implemented a street-smart strategy to dramatically reduce start up costs in the majority of their new locations.

Repurposing a former restaurant space Stoner Pizza Joint franchisees significantly reduce start-up costs and streamline the launch process. Here’s a closer look at why this approach is gaining traction with street smart food service franchisees.

  1. Existing assets are in place.  These spaces often have kitchen equipment, the correct plumbing, electrical systems, hoods and grease traps in place. This significantly reduces both time and costs associated with renovations.
  2. Permits and Licenses: Acquiring permits and licenses is a bureaucratic maze that can eat into both time and budget. By choosing a location that previously housed a restaurant, you can often benefit from what previous owners have already done, streamlining the regulatory process and avoiding lengthy delays.
  3. Built-in Customer Base: By opening in a previous restaurant location, you may inherit a built-in customer base familiar with the location where it’s convenient for them to dine. With some strategic marketing and Stoner’s Pizza Joint tweaks and improvements, you can capitalize on existing goodwill and attract diners from day one.
  4. Cosmetics vs New Construction: By choosing a location that previously operated as a restaurant, you can often make minor cosmetic changes to refresh the space, rather than undertaking a complete overhaul from the ground up, saving hundreds of thousands of dollars.. 
  5. Favorable lease terms: Landlords are often more willing to negotiate lease terms for previously occupied restaurant spaces, especially if the property has been vacant for some time. This can translate to lower monthly rent, reduced security deposits, or other concessions that contribute to cost savings in the long run.

While opening a new restaurant is inherently risky, choosing a previous restaurant location can mitigate some of that risk by drastically reducing start-up costs and leveraging existing assets and remodeling investments such as HVAC, hoods, and handicapped bathrooms. The right existing location will reduce start up risk by hundreds of thousands of dollars without reducing opportunity or potential.