On today's Food Network episode of "Buy This Restaurant," expert restaurant broker, Keith Simpson came to Nashville, Tenn. to help sisters Staci and Kim and Staci’s husband Dan open their own native Chicago deep dish style pizza restaurant.
After financial hardships, where Dan lost his job, when the company he worked for went bankrupt, they moved to Nashville in hopes of financial independence. With an all-in budget of $250,000, they cannot afford to lose, as Staci and Kim’s parents are putting their retirement on the line, and depend on Keith to set them in the right direction. Keith will be showing them three spaces, and only one will be their choice.
The first place they checked out was a corner site on the historic east end of Nashville. It was a fine-dining restaurant, and all the equipment is for sale, contingent on them renting the place. The place is for sale at $150,000 with monthly rent of $10,000. The place was huge, and the kitchen was fully equipped. They are interesting in doing catering and will certainly have enough room for that venture. Keith told them that there are three billion pizzas sold in the country every year. Keith expects renovations to cost about $20,000, leaving them $80,000 for rent and working capital and the return on their investment between 30 to 36 months.
The next place was a completely open industrial space in Germantown. With no business to buy, the rent was low. The one drawback was that it was completely open space, not a turnkey operation. It was originally going to be a baking company, but the bakery never got started. With a new baseball stadium being built just two blocks away, it could be the start of their dream. The electricity is already in, and can handle an industrial kitchen. With rent of only $3,500 a month, it is about a third of the last place. Keith estimates it would take $180,000 to build it to their specifications. They would be left with about $70,000 for start up and working capital with a return on their investment of 24 months.
The last place was in the suburbs about ten minutes from downtown Nashville, and a very large space. With rent of $6,500, a month, and renovations of about $100,000, it leaves them with $150,000 start up and working capital and no business to buy. The return on their investment should only be about 12 months.
After sleeping on their decision, the next day, they decided to eliminate the last place. So the choice was between the first two. Their choice was the empty space they called 312 Pizza Company, which is planning to open in the spring. Best of luck!
Keith advises viewers to check here to see how the restaurant is doing since he brokered the deal. If you liked what you read, please Subscribe, and you will never miss another post from this Television Examiner. Thanks!