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What is the rule of thumb as far as rent vs sales to determine how much you spend on rent for the restaurant b

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Answers (3)
Bob Dolan
Dolan Sales, Inc.
Broward County, FL
Premium Broker

Cy, Good morning. You may want to check out the restaurant "groups" on www.linkedin.com. A wealth on knowledge, most with no agenda from your peers. I hope you have restaurant trade experience. Bob

Jun 16, 2012
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Blackburn & Fears Inc
Principal
FL

Yes and make sure the rent is loaded (CAM's etc). Lease rates quoted without CAM is about as useful as a photograph of oxygen is to a drowning man.

Smaller volume places will have trouble meeting those percentages but can still be profitable. We just worked with a buyer on a sushi bar and rent is 18% (@$12/sqft - loaded) and they are making great money - utilities and payroll are lower for a small place with limited hours.

Good Luck

Cy

Jun 1, 2012
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The BAF Group LLC
MD

Ideally 6%, and no more than 10%.

Jun 1, 2012

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