Home – New Forums New here? Share your story Costs of Food Courts

  • This topic is empty.
Viewing 9 posts - 1 through 9 (of 9 total)
  • Author
    Posts
  • #995565
    Ems1981
    Member
    • Total posts: 25
    Up
    0
    ::

    I’m looking at leasing a kiosk in a food court in Perth CBD. I’ve been told the rent is $1700 a month – This seems too cheap to me..I’m currently leasing a premises 30kms out of the CBD and it is more than double this.

    Are there usually other costs of leasing a premises in a food court? Maybe I’m missing something here.

    #1202642
    J.Zkan
    Member
    • Total posts: 87
    Up
    0
    ::

    Is it in a major shopping centre? If so, rent is usually from 10-20k a month, sometimes higher.

    #1202643
    Ems1981
    Member
    • Total posts: 25
    Up
    0
    ::

    Not a major shopping centre no. It’s on a main street in the perth cbd.

    The monthly rent is $1700 but I assume there would be big costs in regards to cleaning/up keep of the food court?

    #1202644
    Trent Tran
    Participant
    • Total posts: 166
    Up
    0
    ::

    Hi Ems1981, please ask for more info regarding to:

    • Monthly Outgoing (this will be divided with all tenants, you can ask for an audit report last year to see the true cost which was revised and audited)
    • Promotion fund (this is the most BullS…. you have to consider. Like it or not, it has never been fair and it never will. Simple, they can’t promote everyone but everyone must contribute.
    • If it is privately own, you get a better communication and negotiation compared to the shopping centre. They might give you 3 month rent free if you sign up for a 5 year lease. Even give you a hand in shopfitting.
    • Ask who the previous tenant was. Why they left or breached the lease?
    • As long as they put in writing, you could review as your will.
    #1202645
    Ems1981
    Member
    • Total posts: 25
    Up
    0
    ::

    The actual owner of the complex is Hungry Jacks so I would be dealing with them directly. It is being sold privately by the previous occupier. He has shifted location and is trying to sell this location. He is wanting $100,000 for what I can see is the opportunity to trade at the location. There isn’t a business to take over (I’d be starting my own) and the equipment is worth $30k max. He isn’t shifting on the asking price.

    #1202646
    bb1
    Participant
    • Total posts: 4,485
    Up
    0
    ::
    Ems1981, post: 240652, member: 57194 wrote:
    The actual owner of the complex is Hungry Jacks so I would be dealing with them directly. It is being sold privately by the previous occupier. He has shifted location and is trying to sell this location. He is wanting $100,000 for what I can see is the opportunity to trade at the location. There isn’t a business to take over (I’d be starting my own) and the equipment is worth $30k max. He isn’t shifting on the asking price.

    So you are effectively paying $70K for a shell, which you still need to lease. If there was a business you were getting that may be ok, but it sounds like you are paying about $70k for nothing.

    #1202647
    Paul – FS Concierge
    Keymaster
    • Total posts: 3,488
    Up
    0
    ::
    Ems1981, post: 240652, member: 57194 wrote:
    The actual owner of the complex is Hungry Jacks so I would be dealing with them directly. It is being sold privately by the previous occupier. He has shifted location and is trying to sell this location. He is wanting $100,000 for what I can see is the opportunity to trade at the location. There isn’t a business to take over (I’d be starting my own) and the equipment is worth $30k max. He isn’t shifting on the asking price.
    Hi Ems1981,

    Can you speak to HJ’s directly to find out what their current and future plans are? It might inform you about the opportunity and its value.

    #1202648
    Ems1981
    Member
    • Total posts: 25
    Up
    0
    ::

    I have spoken to HJ and due to our desire to sell Burgers they will not allow it. Understandable I guess but nothing wrong with a bit of competition…

    #1202649
    Paul – FS Concierge
    Keymaster
    • Total posts: 3,488
    Up
    0
    ::
    Ems1981, post: 240704, member: 57194 wrote:
    I have spoken to HJ and due to our desire to sell Burgers they will not allow it. Understandable I guess but nothing wrong with a bit of competition…
    Love;-)
Viewing 9 posts - 1 through 9 (of 9 total)
  • You must be logged in to reply to this topic.