Lease Cafe Space: Secure Your Ideal Location

Welcome to the world of cafe and restaurant ownership! If you're reading this, you're probably in the midst of planning the next big step for your cafe business and are on the hunt for the perfect cafe or restaurant space. Finding the right location for your cafe business is crucial for the success of your venture, and that's where we come in. We're here to help guide you through leasing restaurant space and make it a smooth ride.

Leasing a cafe and/or restaurant space requires careful consideration of various factors such as location, size, rent and lease terms, and amenities and utilities. It's important to find a location that not only fits your budget but also aligns with your target audience, business goals, and vision. With the right restaurant lease, you'll be brewing up success in no time!

In this blog, we'll cover all the key elements you need to consider when leasing a cafe or leasing restaurant spaces. From location and size to rent and lease terms, we'll ensure you have all the ingredients needed to secure your ideal restaurant location. So sit back, relax, and enjoy the ride - we promise, it'll be a latte fun!

(A little note - we’ve combined talking about leasing restaurant spaces and cafes in this blog, due to their similar layouts - you may find your ideal cafe space is advertised as a small restaurant space, so keep your options open!)

What is a cafe business?

A cafe business (also known as a coffee shop) is a type of food service establishment that serves coffee and other light refreshments, such as pastries and sandwiches. Cafe businesses can range from small, independent coffee shops to large, multi-location chains.

For restaurant owners and tenants, a cafe business can be a lucrative and fulfilling venture. With the rise of coffee culture and growing demand for convenient and high-quality food and beverages, there has never been a better time to start a cafe business.

However, starting a coffee shop business is not without its challenges. Finding the right location, developing a menu and marketing strategy, and managing the day-to-day operations of your business are just a few of the challenges you may face.

Types of cafes

The cafe industry is vast and diverse, offering various styles and concepts to cater to different customers' needs and preferences. Here are some of the most popular types of cafes:

• Specialty coffee shop: A cafe that serves high-quality coffee and offers a range of specialty coffee drinks, such as lattes, cappuccinos, and pour-over coffee.
• Brunch cafe: A cafe offering brunch-style dishes, such as eggs, pancakes, and sandwiches, as well as offering coffee and other beverages.
• Tea house: A cafe specializing in tea, offering a wide range of tea blends, tea-based drinks, light bites, and snacks.
• Juice bar: A cafe that specializes in fresh juices, smoothies, and healthy drinks, often also offering a range of healthy snacks and bites.
• Co-working cafe: A cafe that doubles as a co-working space, offering customers a place to work and conduct meetings while enjoying a coffee or a bite to eat.
• Sports cafe: A cafe that caters to sports fans, offering a variety of sports-themed food and drinks, as well as live sports events on TV.

These are just a few of the many different types of cafes out there, each offering a unique experience and atmosphere. When creating your cafe business plan, it's important to consider the type of cafe that will best suit your target audience and the vibe you want to create.

Factors to consider when leasing cafe space 

1. Location, location, location

When choosing where your coffee shop is located, it's important to think outside the coffee cup! While it may be tempting to simply choose a prime retail space in the heart of town, there are a number of other factors that you'll need to consider to avoid falling into a "phantom space".

Foot traffic is one of the most important, as you want to be sure that you're in a place where people are walking by regularly. After all, you want your cafe to be the hot spot in town, not a hidden gem that only a few coffee aficionados know about! Shopping centers and other public spots are great places to look.

Another important factor to consider is parking availability. Cafe and restaurant tenants, as well as other restaurant owners, will want to ensure enough space for customers to park their cars comfortably. You don't want your customers to be put off by a long walk from their cars to your cafe or coffee shop or to be unable to find a parking space at all!

Finally, you'll want to do your due diligence and look at the area's competition. While having other coffee shops, restaurants or cafes in the area can be a good thing, you don't want to be so close that you're competing directly with them. Instead, consider choosing a location that is a little bit off the beaten path but still easily accessible to your target audience.

2. Size of your coffee shop

Size definitely matters when it comes to leasing coffee shop space! After all, you want to make sure that your space is big enough to accommodate all of your customers comfortably but not so big that you're paying for unused space. This means you'll need to pick a retail space with enough seating capacity and wiggle room to comfortably seat your customers.

When considering the size of your cafe or coffee shop, start by considering your expected customer count. How many people do you want to be able to seat at any given time? Do you want to have a cozy and intimate atmosphere, or do you want to be able to accommodate large groups of customers? These are all important questions to consider when choosing a space size.

It's also important to think about the type of food and drink you plan to serve. If you're planning on serving a full menu of hot meals, you'll need a larger kitchen space than if you're just serving coffee and pastries. Similarly, if you plan to offer table service, you'll need more seating space than just a grab-and-go setup.

It's also important to consider any potential future expansion plans. Are you planning to expand your menu or your customer base in the future? Make sure that your cafe or coffee shop space is big enough to accommodate these plans so that you don't have to worry about finding a new space later on. (Another great reason to potentially look at leasing restaurant space if you know you plan to expand quickly!)

3. Rent and lease terms

When negotiating rent and lease terms with your landlord, consider your budget and the amount of money you have available to pay. You'll also want to think about the length of the lease, as a longer lease may provide stability and peace of mind, while a shorter lease may allow you more flexibility to move to a different location in the future if needed.

Additionally, consider any additional costs or fees associated with leasing the space, such as property taxes, insurance, and common area maintenance fees. Make sure you understand what you're responsible for paying, what the property owner is responsible for paying, and what's included in the monthly rent. This will help you budget for your cafe business in your business plan and avoid any unexpected expenses down the road.

It's also important to understand any leasing laws, restrictions, or clauses in the lease documents that could impact your cafe or coffee shop business. For example, is there a clause limiting the type of food you serve or restrictions on operating hours? Make sure you fully understand the terms of the lease agreement before signing on the dotted line.

4. Amenities and utilities

It's also important to consider the amenities you need to run your cafe or coffee shop effectively. Will you need a grease trap or ventilation system for cooking? Do you need specialized flooring for a busy dining room? Make sure to factor in these additional costs when evaluating different café spaces.

Additionally, think about the type of ambiance you want to create in your cafe. Natural lighting, outdoor seating, and ample space for customers to lounge and relax can all contribute to a welcoming and inviting atmosphere for your cafe and restaurant tenants. When leasing cafe space, make sure to assess the availability and cost of any additional amenities or upgrades you may want to include in your cafe space.

5. Parking and delivery access

When leasing cafe space, it's essential to think about the parking and delivery access for your customers and employees. Adequate parking is a must-have for any cafe or coffee shop, and it's important to choose a spot that offers ample space for customers to park their vehicles. This will not only make it easier for your customers to visit your cafe but also increase the chances of repeat business.

On the other hand, if you plan to offer take-out or delivery services, it's crucial to ensure that your coffee shop space has easy access for delivery vehicles to load and unload without any restrictions. Make sure to discuss these details with the landlord and include it in your lease agreement. The last thing you want is to face any roadblocks when it comes to delivering your delicious coffee and food to your customers.

6. Zoning and regulatory requirements

Zoning and regulatory requirements can often be a confusing and overwhelming aspect of opening a café or coffee shop, but they are also critical to your success. To avoid any legal or financial headaches down the line, make sure you are familiar with the local and state regulations that apply to your café. Some common zoning and regulatory requirements include obtaining a food service permit, following fire code requirements for kitchen facilities, and adhering to building safety standards for your cafe space.

Additionally, it's important to know any specific requirements for your space. For example, some areas may restrict the size of your sign or the type of outdoor seating that is allowed. By doing your research and consulting with local experts, you can ensure that your cafe complies with all necessary regulations and that your launch is smooth and successful.

How can a hospitality POS help?

A hospitality point of sale (POS) system, also known as a cafe POS, is an essential tool for managing and streamlining operations in a cafe or small restaurant. This technology not only helps with payment processing services but also provides valuable data and insights to help businesses make informed decisions. Here are some of the ways a hospitality POS system can help your cafe:

• Streamlined payment processing: A hospitality POS system integrates with various payment processing services, making it easier to process transactions, manage customer payments, and track sales.
• Inventory management: With real-time data, you can keep track of your inventory levels and make informed decisions about what to stock and when to order more supplies.
• Customer management: A hospitality POS system allows you to collect and store customer information, such as their contact details and purchase history. This data can be used for marketing and customer engagement efforts.
• Data insights and reporting: A cafe POS system provides detailed reporting and analytics on sales, customer behavior, and inventory levels. This information can be used to make informed decisions about the direction of your business.
• Efficient ordering and processing: A hospitality POS system enables customers to place orders quickly and accurately, reducing wait times and improving customer satisfaction.

A "steaming" conclusion!

Well, there you have it! With these tips and tricks, you'll be well on your way to securing the perfect location for your cafe or coffee shop. Remember, it's all about finding a location with the right foot traffic, parking availability, and competition.

And as a final thought, always remember: A great location is the "cream" of the crop for any successful cafe! So don't settle for less. Get out there and find the perfect spot for your business to "brew" and grow. Thanks for reading, and don't forget to "savor" each step of the journey as you build your cafe business!

Interested in learning more about starting and running your own cafe business? Check out our resources below!

• Cafe management
• Coffee shop business plan
• Cafe marketing
• Are coffee shops profitable
• Best pos system for coffee shops
• Cafe branding
• Market size for coffee shops
• Cafe equipment checklist