4 ms·

If you're in it for the long haul, then sock away money to either buy the property, or buy property elsewhere to relocate. That will go a long way towards preve

If you're in it for the long haul, then sock away money to either buy the property, or buy property elsewhere to relocate. That will go a long way towards preventing the "hey, I want a bigger cut of your action" scenario, and provide a cushion against hard times. Of course, there's also the possibility of the local government jacking up your property taxes (something that happened to a place near me).

taion 12y ago
This really isn't practical in New York City. Almost all of these spaces are leased, even the ones for institutions like Union Square Cafe. There are very few restaurants here where the owners own the building as well.
WillNotDownvote 12y ago
My brother is a restaurant owner. He bought the building one of his places was in, along with several other businesses. Initially it was a struggle to keep the mortgage payments going, but over time the other shops faded out and he replaced them with higher rental rate tenants. His restaurant there eventually died a slow lingering death, but even then he just got in a new tenant with higher margins that could afford more than the rent he was paying himself anyway. In any case, he's now got a lot of equity and a steady stream of income from the building. His partner in his other restaurant owns the building they're in, and also owns 3 of other 5 businesses in the building. Nice setup if you can get it.
keevie 12y ago
Yeah buying space for a restaurant in new york city...doesn't happen.
- subpixel 12y ago
  Unless you're a bank. http://observer.com/2012/04/mr-brownstoners-crown-heights-creative-hub-is-but-the-first-of-goldman-sachs-investments-in-the-hood/ http://observer.com/2012/04/mr-brownstoners-crown-heights-cr...
- kryptiskt 12y ago
  It happens: http://www.slate.com/articles/business/continuously_operating/2014/10/katz_s_delicatessen_how_the_iconic_deli_stays_in_business_against_the_odds.html http://www.slate.com/articles/business/continuously_operatin...
icantthinkofone 12y ago
It's hard enough to make money in the restaurant business much less to also take on a mortgage. And then you have no guarantee your restaurant will still be around in three years and then what what do you do? Source: me. Multiple restaurant owner for 30 years.

taion 12y ago

This really isn't practical in New York City. Almost all of these spaces are leased, even the ones for institutions like Union Square Cafe. There are very few restaurants here where the owners own the building as well.

WillNotDownvote 12y ago

My brother is a restaurant owner. He bought the building one of his places was in, along with several other businesses. Initially it was a struggle to keep the mortgage payments going, but over time the other shops faded out and he replaced them with higher rental rate tenants. His restaurant there eventually died a slow lingering death, but even then he just got in a new tenant with higher margins that could afford more than the rent he was paying himself anyway. In any case, he's now got a lot of equity and a steady stream of income from the building. His partner in his other restaurant owns the building they're in, and also owns 3 of other 5 businesses in the building. Nice setup if you can get it.

keevie 12y ago

Yeah buying space for a restaurant in new york city...doesn't happen.

subpixel 12y ago
Unless you're a bank. http://observer.com/2012/04/mr-brownstoners-crown-heights-creative-hub-is-but-the-first-of-goldman-sachs-investments-in-the-hood/ http://observer.com/2012/04/mr-brownstoners-crown-heights-cr...
kryptiskt 12y ago
It happens: http://www.slate.com/articles/business/continuously_operating/2014/10/katz_s_delicatessen_how_the_iconic_deli_stays_in_business_against_the_odds.html http://www.slate.com/articles/business/continuously_operatin...

icantthinkofone 12y ago

It's hard enough to make money in the restaurant business much less to also take on a mortgage. And then you have no guarantee your restaurant will still be around in three years and then what what do you do? Source: me. Multiple restaurant owner for 30 years.