How do I check a commissary kitchen’s tenant mix and turnover?

A commissary kitchen earns from the people who rent it, so the tenants are the business. Start with the list. Group the tenants by type: caterers, bakers, food-truck operators, packaged-food makers. A varied mix usually spreads the risk, while a kitchen filled with one kind of operator may rise and fall together.

Ask about movement. Which tenants have been there longest, which left lately and why? Find out how long empty stations take to fill and whether there is a waiting list. High turnover is not always bad, but you should know the reasons. Look at concentration. If one or two tenants bring a large share of the revenue, their departure would be felt quickly. Compare the list to billing records and bank deposits. Talk to a few tenants if the seller allows it. They will tell you how the kitchen is run and whether they plan to stay. Staff turnover matters too, since tenants rely on the people who run the kitchen day to day. Ask whether tenants share storage or a prep area, because crowded space can push good tenants to leave even when demand for the kitchen looks strong.

Key takeaways

• List tenants by type, tenure and share of income.
• Ask why tenants left and how quickly spaces refilled.
• Compare the list to billing records, and speak with tenants if allowed.
• Ask whether crowding pushes tenants to leave and how long empty stations usually stay empty.