What are the top ten factors to consider as a potential tenant when looking for a restaurant location?
Permission
Firstly, it’s important to determine if the premises have the appropriate planning permission for their intended use, particularly if it’s for an F&B business. For instance, a “sui generis” permission for hot food takeaways is different from a permission for food and drink sales mostly for on-premises consumption.
Extraction
One crucial aspect of an F&B establishment’s fit-out is the kitchen, which requires adequate ventilation and extraction to deal with steam and cooking odours. It’s essential to address the issue of external ducts or extractors, as they often need access to the premises’ exterior to discharge air. In cases where the premises are part of a building, the demise is typically an ‘internal only’ type. As a result, tenants will require the landlord’s and any superior landlord’s approval to modify the structure or exterior of the building, which can be handled through a fit-out licence. However, some landlords may be less willing to permit structural changes, or the building may have certain restrictions in place.
Neighbours
Even if a restaurant is well-received by its customers, its neighbours, whether residential or commercial, may not share the same level of enthusiasm. The lease agreement may establish hours of operation to ensure that customers do not leave too late at night, or to prevent the sounds of a bustling kitchen or clinking bottles from disturbing nearby residents. Typically, F&B leases prohibit causing any nuisance or annoyance to adjacent properties, including noise, fumes, or odours.
Seating Licence
If you have got outdoor space it is important to make sure it is suitable for all weather conditions. When planning to use outdoor space, it is important to confirm that either the lease permits the tenant to use it or the space is part of the premises. If the landlord owns the open space, they may offer a separate seating licence to allow seating arrangements outside. However, if the land belongs to the Council, like a broad pavement outside a city pub, a ‘pavement licence’ may be needed to place detachable furniture on the public highway.
1954 Act Renewal
The term “security of tenure” refers to an outdated concept that grants tenants an automatic right to renew their lease on comparable terms when it expires. If a lease does not offer security of tenure, the landlord may require the tenant to leave at the end of the term, potentially resulting in the loss of any local following or goodwill that has been established. Some purpose-built developments may choose to exclude security of tenure to retain control over their investments.
Disclaimer:
The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Connaught Law and authors accept no responsibility for loss that may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please don’t hesitate to contact Connaught Law. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Connaught Law.
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