# Help on assessing units and leases



## oddknack (Apr 8, 2014)

Hi everyone

I have a question about assessing units and leases. I am planning to open a cafe in London, and am beginning to consider specific units. I have assumed to now that I want an A1 with the view to converting to A3 license as food is important to my planning.

What resources are there (books, people, blogs etc) where I can find information on the following:


differences in what offering is possible from an A1 cafe, and A3 cafe 


key features to look for in a unit to open an A1 cafe / A3 cafe 

- toilets already there

- external wall for food prep for ventilation

- access for deliveries

- presentable flooring / walls / ceiling

- gas, water, electricity supply


differences to consider between taking an existing cafe, potentially with a premium, and taking a unit that is not already a cafe, and typical cost differences 


need for specialists, e.g. builder, plumber, electrician, solicitor, architect 


what fit out I can do with non-specialist help i.e. unpaid labour 

Up until now I have been planning around systems, areas to locate, staffing, menu, finances, but it is clear that assessing units and fit out is a gap that I must address now. I met 2 estate agents and viewed 6 non-cafe units yesterday and it was clear they would all need significant fit out work. I now need the knowledge to be able to assess fit out scope and costs, and decide if I can consider a fit out project, or if I should instead look at existing cafes.

I am grateful for any help you can give, and thanks for reading.

Joe


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## coffee_omega (May 21, 2012)

Hi Joe,

A1 usually covers cafe etc whereas A3 covers hot fast food such as KFC etc why would you change a cafe to fast food?

Units come in different shapes and sizes and rent and premiums reflect that. If your looking into going as a specialist artisan than you should consider a blank canvas so you can design the layout, frontage, etc to your taste and brand.

Main points to consider with a unit:

* electricity supply - single or 3 phase

* size

* footfall

Taking a existing cafe has its down sides such as high premium, marketing from scratch, your not sure how successful they have been, etc however, the unit might be ideal, existing business etc

Typical costs for converting a blank unit to a fully operational cafe would costs approx. £80,000 - £120,000 dependent on your budget and choice of equipment and tradesman.

You will need specialist help from solicitors, electrician, plumber, etc

Hope this helps.


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## oddknack (Apr 8, 2014)

Hi Coffee Omega

Thanks for posting up. Setting the food and A3 license point to the side for a moment, and talking about a coffee+cakes conventional cafe, would the following be the sorts of cafes be in the £80k+ range to fit out from scratch?

http://www.brian-coffee-spot.com/2014/09/01/sugar-blue-cafe/

http://www.brian-coffee-spot.com/2014/07/14/machina-espresso/

http://www.brian-coffee-spot.com/2014/08/11/faculty/


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## Barry Cook (Feb 14, 2012)

Hi Joe

Re your potential change of use, make sure you speak to the planning dept for the particular unit, as different councils take different views on whether they require you to be A1 or A3. My experience has always been that they've demanded A3, but I know others who haven't had that.

BUT what Planning Dept won't tell you, and unless it's changed in the last 12 months, is that the government introduced a relaxation on Change of Use rules, which allows two years of trading without full change of use. You will probably have to still fill out Change of Use paperwork but won't be charged for it (normally a little over £300). This setup was brought in to help fill vacant retail units and stop our high streets from dying. Just don't do what we done, and assume that you don't need to fill our any paperwork, and then end up applying for retrospective change of use and also end up paying for it!!! :/

I'm afraid I can't remember the proper name for this scheme though, so you'll have to look it up.

Re. fit out costs, our first shop cost us around £140k but we were more of a cafe than a coffee shop at that point, so we had an awful lot of expensive kitchen equipment as well as £15k's worth of aircon. Where we are now only cost around £20k, but we are completely speciality focussed with all food being done on a panini grill and most of the fit-out being done by yours truly.

Fit-out cost is one thing, but on-going costs (i.e. rent & rates) could be your main consideration. If you're going down the route of speciality, then a prime location will more than likely not be the right place for you, as you will need one hell-of-a turnover to justify the high rent. And I am talking from experience here!!!


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