Renting A Commercial Kitchen, What Should You Consider?

In the past days I helped a friend with a project that he started from a commercial kitchen, he rented a place in a known area of the city where we live now, but he did not take into account some aspects and although things went well, perhaps he would not have had so many complications if he had noticed certain details before renting the place.

When starting a business with a commercial kitchen, renting is often the most common option for entering the business: when the current owner gives up the lease of his business, you can start a business without starting from scratch. Our main advice is that, in order to make any business decision, you should take into account a series of criteria and recommendations. I’ll tell you about them here.

You must have options for the development of the kitchen

Even if you start out small, at some point your commercial kitchen will need to grow and the commercial premises will need to be partially intervened, In the case of a rental of commercial premises, the rental contract will be affected by what the parties agree and, secondly, by the Urban Rentals Act. It is essential that the lease be drawn up or reviewed by an attorney to defend and protect all your rights as a tenant of the premises. And to avoid possible conflicts in the future.

A second option is to rent a running establishment, with everything already set up. This is called an industrial lease. This is a contractual agreement by which one of the parties, in exchange for a price, cedes to another the exploitation of an economically productive heritage organization, made up of a series of elements (the premises, machinery, furniture, goods, equipment, rights such as intellectual property rights, the clientele, commercial prestige…)

In any case, it is always advisable to make sure that the establishment you are interested in, has the appropriate municipal licenses.

Gather all the information about the premises and the past performance of the business

It is necessary to check the state of the premises, the stocks, the monthly maintenance costs (water, electricity, gas, communal expenses), the type of customers, the history of the premises itself, an analysis of the area, the prices applied, if it is a place where people pass frequently, if there are offices, schools or shops nearby, making a study of the environment is a fundamental point for the development of your future business.

Don’t be discouraged by past business failures on the premises

Lately, there are hundreds of businesses that open and close. Often, what is passed on is a business that has failed repeatedly. That doesn’t mean you shouldn’t go ahead with your business idea, but a few changes will be necessary.

Check what kind of license the premises have

Check the opening and closing times, if sound equipment is allowed, if there have been modifications in it that are not contemplated in the activity licence (and that will end up having repercussions), you should also check in which space the hot line of your commercial kitchen will be located and how the extraction plenums of the hood will come out, no neighbour or nearby premises will want to be affected by the extractions from your kitchen.

Be very careful which place you choose

If it is a transfer of a business, in certain situations it can lead to liability for the previous debts of the company you are acquiring. It is essential to contact a lawyer who specializes in these matters, in order to receive appropriate professional advice.

Make a study of the shop as well

What do you need to change, just the decoration? the service to the public? the type of food? And what is more convenient, to reorient the business to convert it, for example, into a place that specializes in breakfast, mid-morning coffee and meals? A pub perhaps? What public are you going to direct it towards?

Make a plan of possible suppliers

Talk to the beverage distribution companies and find out what they offer you and at what price; locate butcher shops, fruit shops and fish shops where the quality of the products is a priority and which can be your suppliers. The future of your business will depend on what you offer your customers.

Check the equipment of the establishment

Refrigerator, coffee maker, state of the kitchen… Normally these types of tools, basic for your hotel business to work, have been acquired second-hand, they may have many hours of use already or their state of conservation may not be appropriate. This is one more important point to take into account when agreeing on the price of the transfer.

Don’t be afraid of competition in the surroundings.

Do not be afraid because in that area there are already more bars or restaurants, the effect they usually produce is the call, not the opposite. However, to do this, your offer must be at least equal to that of your competitors: take special care in dealing with customers, think about offering something that sets you apart from the rest (it is common to see bars that have earned a well-deserved reputation for a certain tapa or portion).

In other words, study your surroundings in depth, those who will be your rivals, from the average prices they have to the quality of what they offer, including opening hours, treatment, and the type of customers who come to your establishment.

One last piece of advice: change the look of the place. Redecorate, redefine, style. Spend wisely, but remember that there is no profit without investment.