# New venue: Existing vs Empty



## rad (Jan 12, 2018)

Hi, and please forgive another new start-up question&#8230;

I had planned on buying the lease on an existing venue (and then doing minor refurb work), but as a back-up have just viewed an empty unit that (as it turns-out) suits the business better - but would require a complete fit-out including toilets, the coffee bar (including plumbing etc), new flooring and seating etc.

It's better space, in a better position, and I could design it from scratch, but is it at all feasible to do all that for the (roughly) £50k I'd budgeted to move into the existing venue? The space is roughly 87 square meters, and I'd be going for a simple and quite industrial aesthetic.

The benefit of any experience would be greatly appreciated!


----------



## Mrboots2u (May 10, 2013)

What was the existing venue previously ? Cafe ? Retail ? If so why is it now empty .

Footfall will be the key to best choice.


----------



## rad (Jan 12, 2018)

Mrboots2u said:


> What was the existing venue previously ? Cafe ? Retail ? If so why is it now empty .
> 
> Footfall will be the key to best choice.


Thanks for the response, and sorry- I should have been clearer: the existing venue is currently a cafe, and would be trading up until the moment I took it on. I'd be buying the lease, kit etc and could start trading immediately.

The empty venue is just that, and so I'd have to fit it out from scratch.

Footfall-wise, both have pros and cons - the empty venue is probably the most visible though.


----------



## Mrboots2u (May 10, 2013)

rad said:


> Thanks for the response, and sorry- I should have been clearer: the existing venue is currently a cafe, and would be trading up until the moment I took it on. I'd be buying the lease, kit etc and could start trading immediately.
> 
> The empty venue is just that, and so I'd have to fit it out from scratch.
> 
> Footfall-wise, both have pros and cons - the empty venue is probably the most visible though.


Is the current venue profitable ?

There is a place where i live , its been a sandwich shop 4 -5 times in less than 5 years , each time closes , each time someone else opens up , different styles etc. Ultimately they are in the wrong place , but i guess enthusiasm get the better of each new owner.

It amazes me no one takes this on board though .


----------



## rad (Jan 12, 2018)

Mrboots2u said:


> Is the current venue profitable ?
> 
> There is a place where i live , its been a sandwich shop 4 -5 times in less than 5 years , each time closes , each time someone else opens up , different styles etc. Ultimately they are in the wrong place , but i guess enthusiasm get the better of each new owner.
> 
> It amazes me no one takes this on board though .


Yes, it's been pretty solid for over ten years - so no worries there.

Choosing between the two is the next step. The first is understanding what is a rough but reasonable budget to fit out an empty shell - so install the bar, prep areas and toilets, plus equipment, furnishings and decorating. Not hoping for specifics, but just a general 'yeah, it's possible' or 'you're an idiot, it could never be done'!

Thanks!


----------



## Tsangpa (Nov 26, 2017)

£50k could be enough for a fit-out, but it depends on where you are in the UK, what the demand is like for fitters and tradespeople there and most importantly how much of an empty shell it is.

An important factor that people miss when looking at leases and fitting out is that most commercial ones will be full repair leases which means that you have to return it to its original state at the end of the lease. A lot of businesses don't factor that in, and when they look at getting out of the lease it proves cheaper to go bankrupt.

You need to look at what it will cost you to make it your own style and what it will cost to put it back to a unit the owner can lease to someone else - that applies to both locations you're looking at.


----------

