Viewpoints on restaurants and retail food businesses

November 28, 2021

by a searcher in Toronto, ON, Canada

Most searchers seem to be hesitant to acquire restaurants, what are the key drivers behind this?

How do people feel about other types of retail food businesses? e.g. take-out only establishments, ghost kitchens, bakeries, etc.

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Reply by a searcher
from California Polytechnic State University in Santa Clara, CA, USA

The Tempe Food Court is a really cool example of one that leverages real estate to create a ghost kitchen space for multiple brands in one building without having to allocate space for dining in. Buying an existing building in a relatively metropolitan location and retrofitting the space to accommodate multiple brands is certainly growing fast. If you look into the Tempe Food Court, you'll see they not only focused on a good building setup but also location and where they see a large demographic of people who order take-out. The trend is certainly not dying out any time soon.

Reply by a searcher
from Tufts University in Los Angeles, CA, USA

I own a small chain of frozen yogurt shops. We're independent (not franchised) so we have control over all brand/marketing/menu/supply chain decisions. I'd say we're a lot closer to retail than a restaurant, since all our employees have production responsibilities. Frankly it's a business that can cash flow very well when everything is hitting, but it takes a lot of presence and patience to keep things running smoothly and the exit opportunities aren't great unless you get fairly large. I imagine that dynamic scares a lot of people off.

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