Every expert I’ve spoken to on this subject agrees: Negotiating a lease is the number one place where restaurateurs go wrong. First and foremost, never sign a lease contract without having your attorney and either your designer, architect, or general contractor review it.
But before we dive into how each of these people needs to participate in your lease negotiation process, let’s talk about how you should go about finding them in the first place and when you’ll need to get them involved.
The smart time to bring people on board is right at the very beginning. Not having the right partners in place from the outset can cost you. “A lot of restaurateurs will sign a lease that forces them into a financial corner and they have to pay for a lot more and put in a lot more infrastructure than they initially anticipated,” says Tanya Spaulding, principal at Shea, Inc. Here are three partners you’ll want on your side before leasing a restaurant space.
From the start, hopefully, you will have at least consulted with an attorney and possibly already retained one. If you are happy with the relationship you’ve established and the attorney has experience with commercial leases, stay with the same person because they are already familiar with your concept. If you’re still on the hunt, ask your peers who they use and what their experience has been. Strong referrals and a deep background with restaurants similar to yours are good places to start.
A designer is traditionally responsible for laying out a space and choosing finishes, furniture, and other interior details that make up the overall aesthetic of a space. An architect is a licensed professional who will draw up your construction documents and has the power to sign them and submit them for government approval.
Many firms have both interior designers and architects on staff in order to create a seamless process, though not all firms do. Spaulding stresses that your architect and interior designer should have a good relationship. If they’re not from the same firm, make sure they’ve worked together before to produce beautiful, successful restaurants.
When seeking a designer, find a company that has worked on restaurants you love—but this can’t be the only filter. Spaulding warns against designers that lure you in with stunning portfolios and enticing renderings of your own concept before ever having a conversation about what your budget looks like. Don’t let yourself fall in love with images of restaurants that cost $1,000 per square foot to build out. Always consider the money factor.
A critical question to ask, Spaulding says, is, “What kind of business partner will you be to me? You need to bring on an architect and a designer at the beginning that are budget-conscious and timeline-conscious.”
Another major thing to look out for is whether a designer has a “look.” If you can easily see that all of the restaurants in a designer’s portfolio have elements in common or a trademark aesthetic, consider passing. Spaulding says, “You want a designer that’s going to create your vision, not theirs.”
So how do you find a talented, business-oriented, client-focused designer? Referrals are a good bet. The restaurant industry is small, so ask around.
Interviewing the firms that you’re considering is also a really important step. Spaulding encourages clients to control that meeting so that you don’t spend the whole time being wooed by pretty pictures. “Ask them technical questions. How do they approach restaurant design? How do they deal with budgets? How do they deal with schedules?”
And of course, consider only designers who have extensive experience in restaurant design, and spend some time in other restaurants they have designed. Are the service stations functional? How has the interior held up? You’ll want to be confident your designer has practicality and the long game in mind.
