Rappaport Retail Report

Gossip and half baked notions about government rules and regulations run rampant in the restaurant business and restaurant brokerage. The inability to cipher truth from tall tales is often a recipe for ruin. Installing venting is a prime example. On average, for a five story building it costs $30,000, and a month or two for permits. The permit time is often absorbed within the rent concession period, so it is generally not a factor. Believing horror stories, tenants are often willing to pay $1000 a month or more in rent, to avoid putting in their own venting. Rent is the most critical factor for success at retail. Finding the right space in the right neighborhood at the right price is a difficult task in any economy. Only a limited number of landlords allow cooking in their buildings. This loss of logic in excluding a large swath of potential locations is inexplicable. A simple consultation with a kitchen engineer can result in massive savings in rent, and a much more expedient search for space.