The Three Types of Restaurant Property
Restaurants and bars for sale in London can be divided into three categories. Everyone in the leisure property industry will recognise these categories as essential to the prospects and potential of those properties. As a landlord looking for business success, it’s imperative to know how your properties fit into them. Doing so is essential to finding the right restaurant operation for your property.
Primary Restaurant Property
Primary property covers hot, high street locations and high-footfall areas where passing trade can supply a lot of sales: bars for sale in London’s nightlife hotspots; a restaurant for sale in a busy leisure cluster.
Of course, this easy access to a high volume of passers-by does not come cheap. Primary property is the most expensive per square foot. Usually, money is made here by converting the high footfall into a high sales volumes at low margins, creating a big profit through a prolific volume of sales. This mode of business naturally suits London’s fast food chains: Pret A Manger, McDonald’s, Greggs.
Primary property is found exactly where you would expect it. Busy streets with offices surrounding them that can get a roaring lunch trade. The areas around Old Street and Tottenham Court Road are prime examples. Any bars and restaurants for sale here will trigger a lot of interest in the restaurant property market, signifying high rents for the landlord.
Secondary Restaurant Property
It is in secondary property plots that many of London’s most exciting restaurants can be found. Away from the high rental costs of primary locations, operations run from secondary property have a little more room to breathe. Footfall is lower, so there’s less point enticing passing custom inside with bargain meals and speedy service.
This allows fast-casual and fine dining operations to come into their own. Here we can expect to find exciting brands who marry finer food with a more casual setting than full-blown fine dining restaurants. Brands like DF Mexico, London Cocktail Club and Patty & Bun thrive here, using marketing tools like social media to build a market presence and draw in custom.
Still in great locations, but a little away from London’s major thoroughfares, secondary properties often house restaurants and bars with a strong concept or brand which can be used to entice people in. A brand often found in secondary property space is The Breakfast Club. Their Camden Passage location in Angel is a great example of secondary property, just around the corner from the bustling Islington Green area. Their properties exhibit a mix of strong character and good positioning.
Tertiary Restaurant Property
Shops, restaurants and bars for sale in London that are well away from popular dining areas are tertiary property locations. For a drinking or dining operation to succeed in these unlikely locations, something special is required.
So far from any regular passing trade, restaurant operations in tertiary property need a solid strategy to draw in diners. Landlords looking for success with restaurateur tenants in this kind of location ought to thoroughly discuss how they will attract enough custom. Although lower rents will help keep costs down, a solid marketing strategy is certainly needed so far away from the bustling, hungry high streets.
One such strategy is to work with a big-name chef. A prime example of this tactic is Gordon Ramsey’s Royal Hospital Road. With the National Army Museum and Chelsea Pensioners for neighbours, this residential/auxiliary area is not the kind of neighbourhood one would expect to find a three Michelin Star restaurant. The Michelin boost has inevitably become the operation’s biggest pull for diners, but the star that initially guided people to this quiet corner of Chelsea was Gordon Ramsey himself.
Often it is this kind of high-recognition name that can fulfil the potential of tertiary property, turning the promising assets of lower rents and large, spacious, quality interiors into a seriously successful business. This makes identifying hot up and coming chefs very important for tertiary property landlords.
Restaurant Property’s expert leisure property consultants have unrivalled access to the biggest names in the restaurant industry. To benefit from our ever-expanding and exclusive list of proven restaurant operators, call us today on 020 7935 2222 or email firstname.lastname@example.org now.