PRESS RELEASE – May 31, 2009 — Commercial Lease Advocates (www.commercialleaseadvocates.com) wants restaurant businesses to succeed. There is no doubt that people are living in poor economic times; families and businesses are suffering from loss of income. One particular business, which suffers from both the lack of business opportunities and family spending, is the restaurant industry.
Bill Reedhead, Professional Negotiator
The focus of professional negotiator and attorney at law, Bill Reedhead, whose new concept and business venture Commercial Lease Advocates, (www.commercialleaseadvocates.com) is to help restaurants survive these tough financial times by helping the owners renegotiate their leases which can sometimes be as high as 50% of revenues. This is a sure sign of a looming disaster.
Restaurants rely on the business community to use their services, whether it is for the large corporation functions, small business luncheons, or even individual employees who run to a restaurant for a quick bite to eat on their lunch hour break. On the other hand, restaurants may also include family needs, or high-class fine cuisine for the more affluent clientele. However with the high rate of companies going out of business and individuals and families losing their jobs, fewer people are able to splurge on restaurant meals. For some individuals it means to curtail their spending habits and eat out less often, or bring a boxed lunch to work, while for others it mean having to cut out restaurant dining altogether. In either situation this means loss of revenue for the restaurant industry.
Regardless of the dwindling size of the clientele that frequent restaurants, a restaurateur always has a rent to pay. That rent is determined by several factors such as volume (clientele), time and location. Simply put, the more volume in a choice location at peak hours, would dictate that the rent for the building would be as high as the market can bear. Though this formula may work well in a booming economy it can spell financial disaster for the restaurateur in a sluggish economy.
For example, the concept of time bears a lot upon the rent of a location. A restaurant that is conveniently located in the downtown sector or the hub of the tourist area will have to pay a higher rent than one that is located in a residential area. Similarly, if the restaurant is located across from an annual event such as a festival, the rent will be more expensive at that particular time of the year. If the event was a paying event such as a concert, and was cancelled because of insufficient ticket sales, the restaurants or sole restaurateur will also suffer from the lack of that much needed revenue.
Bill Reedhead, Founder of Commercial Lease Advocates, (www.commercialleaseadvocates.com) has this to say, “With regards to location, a business may cater to the luncheon needs of factory or office workers. However, if the businesses in the commercial or manufacturing district close or begin to lay off many people, this unfortunate turn of events will have a direct effect on the revenue of restaurants in the area. If there is only one restaurant in the area that business may be able to weather the storm until new businesses open or existing businesses rehire their employees. However, if there are several restaurants in the area during an economic slump, each of these businesses is competing for the dwindling clientele.”
Though rents are based upon predicted revenue, in these trying times it is very difficult to keep up with a fixed rent on a commercial property such as a restaurant. Restaurant owners are faced with high rents and dwindling profits. Some will continue to suffer while others will consider relocating or going out of business entirely.
Before either of these options is considered, there is another way. Commercial Lease Advocates can help. Commercial Lease Advocates is in the business of helping business owners renegotiate existing leases, to lower the rents and bring them more in line with the economic conditions. Why struggle with higher rents if you don’t have too? Furthermore, because the good people at Commercial Lease Advocates realize how hard it is to make profit in the restaurant industry, they will not charge you if they cannot successfully renegotiate a lease for a client.