Pizza Today - June 2020 - 16

BUILDING BLOCKS

NICK BOGAC Z

* Why is it for sale? Ideally, I look
for restaurateurs that just want out
and want to sell their properties as
quickly as possible. More specifically,
these owners have a pain point -
financial issues, they bought their
restaurant from a relative and it
didn't work out, etc. Typically, they
will give you the best deal. All of my
pizzerias previously had an owner
with some sort of pain point.

So, You Want to Open a New Store?
Here's the 'Deal'

elcome to a new monthly

column meant to walk you
through the process of opening a new store, from bright idea to grand
opening. Pretty soon, I'll have done this six
times in eight years - even if I can't say
I've done it the traditional way. You know
what I mean: make a business plan, find a
partner and follow the "location, location,
location" cliché. There's nothing necessarily
wrong with that, but I like to think my process is easier and more feasible if you want
to open a new store in a short timeframe.
The first step is the deal - nothing

more, nothing less - but what does that
mean? You want to find a space for your
new store that's the best fit for you, your
resources and your goals.
I typically start my search on Craigslist
- yes, really - and check commercial real
estate sites like LoopNet. At the same time,
I'm grabbing the ear of every restaurant
broker I can find. You'll start to get a lot
of results and potential properties to visit.
Do your research. Check and recheck every
property before you even see it in person.
Make a list of questions, but be sure to have
an answer for these two:

* What's the history of the building? Part of the right deal is that at
some point this property had to be
"the spot," or it was a popular community that drew in patrons from
far and wide. Personally, I prefer to
buy a store that is already a really
busy place. I never want to deal with
loyal patrons telling me they like the
last place's food better. That's why I
would rather buy a failing business
where the owner just wants out. But
I do require that building to have
had a very successful restaurant at
some point in the past. I want to
bring it back to life.
To recap, the right deal for your
new property will have an owner with
a pain point and be a location that
was the happening spot at one time
- just not now.
Of course, there's one missing
piece, and it's a big one: money.
Important as it is, the price is the
last question I ask after I'm done
looking at a restaurant for sale.
That's because I'm not concerned
about the restaurant if it's not the
right fit for me.
That doesn't mean money is not a
factor, of course. The final question
to ask is: will the owner finance the
deal? And that's what we'll examine
next month - buying your new
store with little or no money. ■

NICK BOGACZ is the founder and president of Caliente Pizza & Draft House in Pittsburgh. Instagram: @caliente_pizza
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Pizza Today - June 2020

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