So, you are thinking of setting up a brand-new restaurant in Canada’s largest city? Finding a restaurant in Toronto can be an exciting yet challenging venture; from securing the right city location to negotiating favorable lease terms, the process is filled with complexities. This is where a Toronto restaurant commercial broker becomes indispensable. These professionals possess the market knowledge, negotiation skills, and industry connections necessary to help you find a restaurant venue that fits both your vision and budget.
Choosing the best restaurant commercial broker will of course be key to your success. Keep in mind that not all brokers are created equal, and to make sure you partner with the right one you need to ask the right questions. Below we’ve listed 8 of those key questions to help you do just that…
1: What is Your Experience with Restaurant Properties in Toronto?
The Toronto restaurant industry has unique demands compared to other commercial real estate sectors. A broker experienced in restaurant properties will understand the specific needs of restaurateurs, such as licensing requirements, kitchen infrastructure, waste management requirements, and customer accessibility. Do not be afraid to ask for examples of different clients they have helped to secure restaurants in the past.
2. Can You Provide References from Previous Clients?
Nothing speaks louder than glowing references from previous clients the restaurant commercial broker has assisted. References offer real-world evidence of the broker’s track record. Speaking to a selection of their past clients will provide invaluable insights into the broker’s problem-solving abilities, their approach to customer service, and their success in closing deals that benefited those clients.
3. What Neighborhoods Do You Specialize In?
Toronto is a city of diverse neighborhoods—from the bustling downtown core to trendy spots like Queen West or the culturally rich Danforth. What areas are you keen to explore in the city for your new venue, or are you open to suggestions? A broker who specializes in a specific area can offer valuable insights into the local market, competition, and customer base. Other brokers will have cross-city experience in restaurant sales.
4. How Do You Stay Updated on Market Trends and Property Listings?
The Toronto restaurant market is fast-paced and ever changing in Toronto, with prime locations often being snapped up quickly. A proactive broker will have their finger on the pulse – they will have access to the latest listings and market data, as well as have an established list of connections they can tap into. They will often have foreknowledge of what properties are coming on to the market and help you secure one before it becomes widely available.
5. What Are the Typical Lease Terms for Restaurant Spaces in Toronto?
Lease terms can vary significantly and could have a major impact on your restaurant’s financial health. An experienced Toronto restaurant commercial broker will let you know what to expect in terms of rent, duration, and any additional costs that will help you budget effectively and avoid any unexpected expenses.
6: How Do You Evaluate Potential Restaurant Locations?
As we pointed out in a previous article, the success of a restaurant will hinge on its location in Toronto. A good restaurant commercial broker will take time to listen to your business goals and the demographic you want to target; they will evaluate factors such as visibility, foot traffic, competition, and local community to ensure the location is best possible one for you.
7: Can You Assist with the Negotiation of Lease Terms?
A Toronto restaurant commercial broker with proven negotiating skills is worth their weight in gold. Achieving the best possible lease terms is a critical step in securing restaurant space. A broker with strong negotiation skills can help you obtain more favorable terms, such as rent reductions, build-out periods, or tenant improvement allowances.
8: What is Your Fee Structure?
Making sure that you fully understand a restaurant commercial broker’s fee structure will be essential for budgeting purposes. Fee structures can vary, so it’s important to know whether their fees will be a flat rate, a percentage of the lease, or something else entirely.
Closing thoughts
Working with a skilled and knowledgeable Toronto restaurant commercial broker can make the difference between a successful restaurant launch and one fraught with challenges. By asking these key questions, you’ll be better equipped to find a broker who not only understands your vision but also has the experience and expertise to make it a reality. Remember, the right broker will be your partner in navigating Toronto’s competitive market, helping you secure a location that sets your restaurant up for long-term success.
CHI is dedicated to keeping up with local and national trends in the Restaurant Industry to help serve our customers better and keep them one step ahead. If you are interested in opening, purchasing, or selling a restaurant CHI Real Estate can help. Get in touch with our team today.