What changes when you buy a food court restaurant instead of a street-front one?
A food court unit follows the mall’s hours, depends on the mall’s traffic, shares seating and services with other tenants, may face limits on menu and signage, and brings the mall landlord into the sale as a second party. A street-front restaurant sets its own day but has to draw its own customers.
Both formats serve food, but the daily work is different. A street-front restaurant usually sets its own hours and has to attract every customer itself. A food court unit gets steady passing traffic and gives up some control in return. If you are weighing the two, think about the kind of operator you want to be before you look at any one business.
Who sets the day
A mall lease may set opening and closing times that the unit has to keep, even on slow evenings, so check the lease. A street-front owner can shorten a quiet day or add a late shift. Think about how that changes staffing, and whether the schedule suits how you want to live.
Where customers come from
Food court customers are shoppers, workers and students already in the building. That traffic depends on the mall and its anchor stores, so a change in the mall affects you directly. A street-front restaurant depends on its location, its reputation and its own marketing. Ask each seller how sales responded to changes nearby.
Shared space and limits
A food court unit shares seating, cleaning and sometimes services with its neighbours, and its lease may limit signage and menu. A street-front owner has its own dining room, but also its own upkeep. Compare costs on each side with your accountant, as franchise entry costs are only part of the picture.
A second party in the sale
Buying in a mall means the landlord is part of the deal. A street-front lease usually needs the landlord’s consent too, but a mall landlord tends to have more say: it may need to approve you, and it may set terms for the lease you take on. Plan for that conversation with your lawyer early in the process.
Related reading
15 pages on the same subject, grouped by topic.
Buying
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- Expert answerWhat happens to a restaurant’s delivery app accounts when it is sold?
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Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernment13 terms you need to understand before signing your commercial real estate lease
- 03Restaurants CanadaIndustryRestaurants Canada - The Voice of Foodservice
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