Recently, a friend of mine asked me about turning a piece of property he has into a restaurant. To be clear, he doesn’t have a passion for foodservice per se, he is a successful operator of several assisted living facilities. The property he owns was purchased with the ambition of opening a new assisted living facility. He sees this endeavor as a “fun” investment. I thought I would comment on the thought process people go through as they look into opening a restaurant. In this case, the plan is to open a tap house and restaurant.
The property in question is a school house that is 106 years old. It sits on 2.5 acres in a well-populated midwest suburb near a major city. The first step was to take the idea to the city to see if they would support changing the use of the property from assisted living to a foodservice establishment. Not only was the city enthusiastic about the idea, they sent my friend to look at a tap house in a nearby large city. They said, “If you can do something like this, we’ll be your best customer!” With that hurdle cleared, now the real work could begin! (more…)