Posted 4/24/2019 13:36 (#7456772) Subject: Restaurant related question
Red River Station, Texas and Oklahoma
The amount of details worth considering closely are monumental with this restaurant planning. We’re trying to be realistic and not go too far on expenditures. Whether or not a bank loan will be needed is still up in the air. We’re working hard to avoid much debt.
Here’s where my question fits in. One existing location of a restaurant building will need to be remodeled for our use. I can’t see any way around that with any location we’ve looked at. The ideal building will need additional cooking facilities built. There’s room for it behind the freezer building, but that would cut off two way access for the two parking lots. It would also cause issues for the delivery trucks and the dumpster truck.
One idea ,an expensive one at that, would require getting a loan to purchase a two story house next door to the east parking lot. We’d tear the house down after buying it, but first apply for rezoning for that property. Rezoning shouldn’t in theory be difficult. There’s already a shopping center across the street. That additional property would easily provide the extra parking needed and most importantly room to go ahead and build the additional cooking space and still have plenty of room for delivery trucks and the sanitation truck.
How do you calculate the risk and reward? Or how do you estimate if buying the additional property is worth the expense and risk? The restaurant should be a hit and have sufficient new and repeat customers. But we must have enough profit and revenue to overcome the initial expenses within a certain timeframe.