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space is not like renting a house or apartment. It's more like buying a car, in that the asking price is oſt en merely the fi rst step in a negotiation. "Just because it's the asking price does not mean you have
your coff eehouse, you'll have to rent one. Getting the best possible lease is one of the earliest and most critical challenges your coff ee business will face. Making the right decisions at this stage can save a lot of money and headaches, and can smooth the way forward. Th e fi rst thing to keep in mind is that renting a business
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he lease shall be fi rst. If you're not planning to buy or build a building for
that has the most impact" in terms of attracting customers, Herman says. "You have the opportunity to leverage that to your advantage by negotiating with the owner on that basis. People don't give themselves enough credit for what they bring a commercial center like that."
landlord as much as he or she helps you. Successful coff ee shops are not just reliable rent payers; they're oſt en major traffi c draws to a mall or other retail center. "It's usually a small space, but it's oſt entimes the space
to pay that," says Wes Herman, owner of Th e Woods Coff ee, a chain in Washington state. And many other things besides the price are open to negotiation. To prepare for negotiations, it oſt en helps to remind yourself of something: If things go well, you're going to be helping the
successful coff eehouses or other ventures. If this is your fi rst business, you'll have to work a little harder to make the landlord believe in you, says John Melaniphy, president of Melaniphy & Associates in Chicago, a veteran real-estate and restaurant advisor and author of "Th e Restaurant Location Guidebook." "Obviously if you've never been in business before, and
FIRST TIME THE HARDEST Of course, it's easier to sell this line if you already have several
you go to open up a coff ee shop, you're going to have a lot of reluctant landlords," Melaniphy says. "What you have to do, if that's where you're coming from, is to prepare your story. You need to be able to tell them why you're going to be successful and others weren't." Th is includes sharing details of your business plan and making sure they know you are familiar with basic business principles and management techniques. Still, don't forget that the landlord needs tenants as much as
industry consultant, said at a recent lecture at Coff ee Fest Chicago. "And I can walk at any given time.
pays to do research and understand how much retail property generally rents for in your area. And keep in mind that a good property in the right location will oſt en command a premium. "Oſt entimes a high [rent] is going to benefi t you because
22 | August 2012 • www.specialty-coffee.com Every situation and every market is diff erent, of course. It "
you need a place for your coff eehouse. "I go in there with the attitude that I'm the buyer and they're the seller," Bruce Milletto, a longtime coff eehouse owner and
you have higher sales," Herman says. "A low rate may indicate lower sales."
