How Difficult Is It to Open a Restaurant in Downtown Toronto?
Every year, many Toronto restaurants open and close. The restaurant business is not an easy one to get into, but can be lucrative if your restaurant finds success. Before deciding to start a risky venture such as opening a restaurant, it’s essential to inform yourself about the challenges you will face in running your new business.
There are many restaurants for sale in the downtown Toronto area. This high-traffic location is expensive, but one of the best areas for visibility. Space downtown is in high demand and is quite costly. When you create a downtown restaurant business, the stakes are high.
The first step to rising to the challenges of the fast-paced downtown environment is getting the information you need to succeed. Here’s what our knowledgeable Toronto restaurant Brokers want you to know.
Challenges New Restaurant Owners Face in Downtown Toronto
What are some of the difficulties you might run into as a new restaurant owner? It can be difficult to get established as a new business. If you’re interested in starting a restaurant, food is probably your passion in some way: running a restaurant is all about sharing that passion with your customers.
Starting Budget
To start a successful restaurant, you need to have a substantial budget to work with. Unfortunately, most banks aren’t interested in giving out high-risk loans for up-and-coming businesses. You’re on your own for the most part when gathering your budget. However, there are financing options available such as small business loans.
Make sure you can afford the purchase price plus first and last month’s rent etc… and don’t forget to account for employee salaries, ingredients, stocking the bar, cleaning services, appliances, and other restaurant costs. Be sure you have a large enough budget to get your restaurant off the ground before you start spending.
Finding a Space That Works for You
Finding the right location for your restaurant can make the difference between a successful business and significant financial loss. A good space for any business isn’t easy to find in downtown Toronto, but it’s especially tricky to find a place with the customer traffic a successful restaurant needs.
Licensing to Server Food and Drink
Where would many restaurants be without their LLBO license? Smart Serve is required for everyone who sells alcohol in Toronto and is crucial to keeping your restaurant business successful. Aside from LLBO, you also need a permit to serve food. The process of getting this business license isn’t too difficult, but you need to make sure you follow the procedure correctly.
Adhering to Regulations
Running a Toronto restaurant brings it some stringent regulations that your business will need to comply with. In an in-demand area like Toronto, kitchen inspections are not lenient, so it’s important for your restaurant to always be at the top of its game and meet all food handling and storage requirements.
Attracting Customers
Don’t forget who your restaurant is serving. To attract enough customers to support your business, it is a good idea to invest in an advertising campaign. It is really important to carefully consider signage for your business and presence online. Positioning your business in a central location will also help attract customers.
Get a Head Start on Your Toronto Restaurant With CHI Real Estate
At CHI Real Estate, we have plenty of experience helping new businesses get started. Our team of Toronto restaurant Brokers knows the downtown area inside and out. We will help you find the right location for your restaurant business without putting too much strain on your budget. If you’re looking for a restaurant for sale, or a location to start fresh, we have you covered.
We have an established and trusted reputation for investment, commercial, and business property sales in Toronto and the GTA. In our time in the industry, we’ve built the connections we need to find you a property that best suits you. To get your restaurant business started, contact us today.