Ahhh it's frustrating how mich they charge for space here!

[authentic]

Unbelievable how much they charge for space here 35/sq ft. + operating expenses. I am back to square one negotiating for first place. It has the best location out of all available on the market. Hmmmm any suggestions?

 

[John P]

you need to have 2 or more locations to negotiate or you will have no leverage.
You want the landlords to compete over you.

 

[authentic]

Thanks! I did mention to him I am looking into other location so he is under the impression that I am about to walk away if price is not right. So he is ready to give me a better price. I also have got my own proposal ready that suit me and I would be comfortable with paying. However I want to see first what he is ready to bring the price down to.

 

[authentic]

Should rent be around 10% of gross monthly sales? Is that the number I should stick to?
If shop is grossing $1,000/day what would you be comfortable paying for a rent?

 

[CoffeeJunky]

10-15 percent of your gross lease would be decent.
Of course, it would be better to have less.
But do not compromise the location because of few hundred dollars

 

[authentic]

Thanks! It is making my math work I am a number person. Location is nice, the shop will be more casual walk in atmosphere instead of quick drive through. The only places that have drive through here are big chain companies like Tim Horton's & Robins. It is in a stripall, lots of shopping around, lots of dental/medical offices, residential area behind the mall, avarage of 15000 vehicles a day drive my the mall. It is safe clean, there is bar/grill down the mall well established and Italian food cuisine across. So for the coffee shop I think is OK. O would not want to be in bad area or unsafe area because of costs. It is elite area of this city. Our downtown is alive during day, but after 5:30,it goes dead. All action is either in this area or other side of the city. I have negotiated owner from 3600 down to 1800 + common costs per month. Now working on finer details of the contract. Yes I would love to buy my own machine and grinder. Any good suggestions? Thanks again for all the input and help!