The Quiet Way Restaurants Overpay for Space

About this episode

Kyle discusses the impact of off-premise dining on restaurant leases and how operators can adjust their strategies accordingly.

Kyle breaks down one of the most overlooked real estate problems in the restaurant industry right now: the off-premise lease mismatch. Over 50% of restaurant revenue is now coming from delivery and takeout, but most leases are still written for a dining-room-first business model. That gap is costing operators real money in ways that never show up on a P&L. Questions this episode answers: Should I pay for a high-visibility corner location if most of my revenue is delivery and takeout? How does off-premise dining affect my restaurant lease strategy? What should I negotiate for in a lease if my concept is delivery and pickup-heavy? How do I use my DoorDash or Uber Eats data to pick my next restaurant location? What lease provisions should I ask for to support third-party delivery drivers? Is visibility still worth paying for if most of my customers are ordering online? Actionable Takeaways Pull your sales mix from your POS before your next lease negotiation. Know your dine-in vs. off-premise split down to the percentage. If you're 50%+ off-premise, your rent ask should reflect that visibility is worth less to your model. Negotiate for pickup staging and dedicated short-term…

People in this episode

Host: Kyle Inserra

Topics covered

• restaurant real estate
• off-premise dining
• lease negotiation
• delivery and takeout
• restaurant revenue
• visibility in leasing

Keywords

• restaurant lease
• off-premise lease mismatch
• delivery revenue
• takeout
• lease negotiation
• visibility
• DoorDash data
• Uber Eats data
• third-party delivery

Mentioned in this episode

Organizations: DoorDash, Uber Eats

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