3 ms·

Yeah, when I saw Paul's post, the first thing I thought was that it would encourage every landlord of a place that a lot of very rich people love to triple the

Yeah, when I saw Paul's post, the first thing I thought was that it would encourage every landlord of a place that a lot of very rich people love to triple the rent and force a rich person to buy it at a favorable price.

DilipJ 15y ago
investing in restaurants is a great way for a rich guy to become a poor guy. One case of food poisoning and you'll be dealing with lawsuits that will force you under. plus it's not scalable, so it's difficult to make a lot of money, unless the food is so good or unique that you can franchise it. But I'm guessing the appeal of Elan has more to do with the atmosphere than the menu... Anyway, it doesn't matter, the reason the landlord is raising the rent is because he/she assumes that there is someone willing to pay more for the space, which indicates that there is a more economically viable operation that can be run in that area than that particular restaurant.
- vishaldpatel 15y ago
  Business leasing is usually longer-term (often 10 years) and any rent increases are negotiated. The fun starts when the lease is up for renewal: - Landlords can refuse to renew it. I know of cases where the landlord changes and the new landlord decides not to continue the lease. When the business owners leave, the landlord restarts the same business in that location - hires his cousins to run shop. Often the businesses, despite being profitable (a lot of small businesses are just ramen-profitable) can not afford to move out so they leave everything behind. - Landlord wants a lot more rent to reflect market conditions. This increases fixed costs, which make the business harder to run, and much more unattractive to potential buyers. Most landlords want the businesses who rent from them to succeed and try to be reasonable with their demands because they prefer to have a stable cash-flow from their investments.
- Chico 15y ago
  In the case here you're not really dealing with the restaurants itself, but with the building. You rent your space to the restaurant.

DilipJ 15y ago

investing in restaurants is a great way for a rich guy to become a poor guy. One case of food poisoning and you'll be dealing with lawsuits that will force you under. plus it's not scalable, so it's difficult to make a lot of money, unless the food is so good or unique that you can franchise it. But I'm guessing the appeal of Elan has more to do with the atmosphere than the menu... Anyway, it doesn't matter, the reason the landlord is raising the rent is because he/she assumes that there is someone willing to pay more for the space, which indicates that there is a more economically viable operation that can be run in that area than that particular restaurant.

vishaldpatel 15y ago
Business leasing is usually longer-term (often 10 years) and any rent increases are negotiated. The fun starts when the lease is up for renewal: - Landlords can refuse to renew it. I know of cases where the landlord changes and the new landlord decides not to continue the lease. When the business owners leave, the landlord restarts the same business in that location - hires his cousins to run shop. Often the businesses, despite being profitable (a lot of small businesses are just ramen-profitable) can not afford to move out so they leave everything behind. - Landlord wants a lot more rent to reflect market conditions. This increases fixed costs, which make the business harder to run, and much more unattractive to potential buyers. Most landlords want the businesses who rent from them to succeed and try to be reasonable with their demands because they prefer to have a stable cash-flow from their investments.
Chico 15y ago
In the case here you're not really dealing with the restaurants itself, but with the building. You rent your space to the restaurant.