Buying just the kitchen?!

Discussion in 'Commercial Property' started by wooster, 31st May, 2018.

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  1. wooster

    wooster Well-Known Member

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    CBD Commercial Kitchen

    Does it have any investment potential if we are only buying a Kitchen?
    anyone know how much can it rent out?
     
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    It would rent for whatever a tenant may pay. A commercial agent in that area would be a good idea. BUT...You may be seeking a tenant who doesnt want a restaurant and only a kitchen. Could be limited appeal.
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Usually known as a dark kitchen ie the takeaway/delivery section for better known restaurants.
     
  4. boeman

    boeman Well-Known Member

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    Believe they are quite common now due to Uber Eats/Deliveroo etc. But, I think a lot of this is about to collapse as its bordering on a pyramid scheme
     
  5. tattoo

    tattoo Well-Known Member

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    I have a mate who does this in Melb for his business, currently renovating out a 2nd kitchen space. It does well enough for him. From what he says there are a bit of costs involved and risk. With the food ordering scene ramping up in the CBD, there is demand as some well known restaurants wants a cut of that market but not compromise their existing kitchen capacity for their eat-in customers. Also hired for foodie events and caterers that need a place closish to the venue. He says its important to know the market and that there is enough demand
     
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  6. Otie

    Otie Well-Known Member

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    I can see this area heating up. Retail is dying, and I can see eating out dying off a little with the introduction of all the restaurant delivery services, especially through the colder months. I have no professional advise whatsoever though, just my opinion.
     
  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    How ? I do question the model for the delivery provider (driver). Its low revenue and akin to being a dominos driver. The buyer gets cold food (sometimes eg Maccas). The food provider gets access to a broader (local) market and buyers and doesnt need to invest in vehicle, website ordering / apps or advertising much BUT must give up some revenue as a cost to access the chain.

    In some areas Uber eats is smashing it for small businesses. One I know has seen a 20% + spike in orders. The margin impact on profits is very good since labour costs and operating costs are largely fixed.
     
  8. boeman

    boeman Well-Known Member

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    Uber is the one making money.

    Uber Eats imposes 'unfair contracts' and ruins deliveries, restaurateurs allege