Preparing to acquire locations? Avoid common mistakes. Read this best practices guide first. 

  • Solutions

    Platform

    • Lease Management Software
    • Lease Accounting Software
    • Artificial Intelligence
    • Assets & Contracts
    • Reporting & Analytics

    Services

    • CAM & Tax Reconcilliation
    • Lease Abstraction

    Industries

    • Food & Beverage
    • Hair & Beauty
    • Health & Fitness
    • Medtail
    • Petcare
    • Retail
    Ready to learn more?

    Watch our 2-minute demo video, or contact us to schedule a demo.

    Book a Demo
  • Resources
    Featured Story:
    "Outmaneuvering the Competition: How Leasecake Helped Me Secure a Prime Location"

    Read How >

    • Blog
    • Customer Stories
    • Guides
    • Webinars
    • Onboarding & Support
    Ready to learn more?

    Watch our 2-minute demo video, or contact us to schedule a demo.

    Book a Demo
  • Pricing
  • Company
    Company News
    EMERGING Fund Backs Leasecake as Strategic Investor
    Leasecake announces that EMERGING has joined as a strategic investor, closing the company's $10M Series A extension.
    Read News
    • About
    • Careers
    • Contact
    • Partners
    Ready to learn more?

    Watch our 2-minute demo video, or contact us to schedule a demo.

    Book a Demo
Login
Watch a Demo
  • Solutions

    Platform

    • Lease Management Software
    • Lease Accounting Software
    • Artificial Intelligence
    • Assets & Contracts
    • Reporting & Analytics

    Industries

    • Food & Beverage
    • Hair & Beauty
    • Health & Fitness
    • Medtail
    • Petcare
    • Retail

    Services

    • CAM & Tax Reconcilliation
    • Lease Abstraction

    Ready to learn more?

    Watch our 2-minute demo video, or contact us to schedule a demo.

    Book a Demo
  • Resources
    • Blog
    • Customer Stories
    • Guides
    • Webinars
    • Onboarding & Support

    Ready to learn more?

    Watch our 2-minute demo video, or contact us to schedule a demo.

    Book a Demo
  • Pricing
  • Company
    • About
    • Careers
    • Contact
    • Partners & Integrations

    Ready to learn more?

    Watch our 2-minute demo video, or contact us to schedule a demo.

    Book a Demo
  • Login
  • Solutions

    Platform

    • Lease Management Software
    • Lease Accounting Software
    • Artificial Intelligence
    • Assets & Contracts
    • Reporting & Analytics

    Services

    • CAM & Tax Reconcilliation
    • Lease Abstraction

    Industries

    • Food & Beverage
    • Hair & Beauty
    • Health & Fitness
    • Medtail
    • Petcare
    • Retail

    Ready to
    learn more?

    Watch our 2-minute demo video, or contact us to schedule a demo.

    Book a Demo
  • Resources
    • Blog
    • Customer Stories
    • Guides
    • Webinars
    • Onboarding & Support

    Ready to
    learn more?

    Watch our 2-minute demo video, or contact us to schedule a demo.

    Book a Demo
  • Pricing
  • Company
    • About
    • Careers
    • Contact
    • Partners & Integrations

    Ready to
    learn more?

    Watch our 2-minute demo video, or contact us to schedule a demo.

    Book a Demo
  • Login

5 Restaurant Lease Mistakes That Will Cost You the Big Bucks

  • October 3, 2019
  • Taj.Adhav
Negotiating a good restaurant lease or lease renewal can be a challenge.

Negotiating a good restaurant lease or lease renewal can be a challenge. 

While restaurateurs are well-versed in the ways of marketing, managing, and menus, they are not always knowledgeable about real estate. Most restaurant tenants may through the leasing process once or twice in their lifetime, yet they find themselves up against seasoned professionals who negotiate leases every day for a living.

Their job is to sell tenants on leasing their location at the highest possible rental rate.

So, how can you be sure to get the best rates when you’re leasing restaurant space?

Whether you are negotiating a lease renewal, or leasing a new location for the first time for your restaurant, here are a few insider tips every restaurateur should have in their back pocket.

Ignoring That Little Voice Inside

Set aside your emotions and make objective decisions. Whoever most needs to make a lease deal will concede in order to secure the location. Developing a mindset that includes walking away from any deal that doesn’t suit your needs will save you a lot of time, money, and aggravation. A good restaurant business in a poor location will become a poor business.

Not Having a Poker Face

A good quarterback can take the snap from center, fake the handoff to his running back, and then pass the ball to an open receiver, thereby not broadcasting his intentions. As a prospective restaurant tenant, avoid saying phrases like:

  • When I move in I would get the carpet replaced, or…
  • This large room could easily accommodate bigger groups or private functions.

These are called buying signals and they always serve to weaken your bargaining position. Don’t let what you say, and the words you choose, work against you. 

Not Negotiating

If you want three months free rent, then ask for five months. No one ever gets more than they ask for, so ask for more than you actually want. Be prepared for the landlord to counter-offer and negotiate with you as well. Don`t be afraid of hearing `no` from the landlord – counter-offers are all part of the game.

Paying Rent Too Soon

Unlike residential leases, where you start paying rent as soon as you move in, many restaurant leases will provide you with several months before you have to make your first monthly rent payment. This delay is to permit you to do whatever buildout you may need to do for your restaurant, and perhaps even give you some time to get up and running before you must start meeting that monthly rental obligation. How long you will be permitted before you have to start paying will of course be a key topic of negotiation, and every extra month will make a big difference in whether you get off on the right foot or are playing from behind right from the start.

Overlooking Second-Generation Space

Try to avoid going directly for spaces that need to be customized. Small restaurants especially can get much more value for their dollar by going with second-generation spaces, or buildings that have already housed restaurants. They should already have the necessary equipment in place, so you have fewer upfront costs to consider.


To learn more about how Leasecake can help you simplify commercial real estate lease management, schedule a demo today.

Share:

Recent Posts

Get Your Lease Documents Organized Before Due Diligence Hits

Lease Management Isn’t Just About Deadlines—It’s About Strategy, Risk, and Growth

Leasecake Welcomes Jozef Jamrich as Chief Technology Officer to Drive Innovation and Reliability

Your Franchisees Depend on You—Do You Have the Full Lease Picture?

6 Hidden Lease Risks Franchisors Can’t Afford to Ignore

PrevPrevious Blog PostYou Might Not Need Property Management Software
Next Blog PostHappy 40th, Spreadsheet — You’re Over the HillNext

Let us help make
lease management
a piece of cake.

Watch a Demo

Let us help make lease management a piece of cake.

Watch a Demo
Linkedin Youtube Vimeo
Solutions
  • Lease Management
  • Lease Accounting
  • Artificial Intelligence
  • Assets & Contracts
  • Reporting
  • Lease Abstraction
Company
  • About
  • Careers
  • Partners
  • Press
  • Contact
Resources
  • Blog
  • Customer Stories
  • Help Center
  • Submit a Ticket
Legal
  • Privacy Policy
  • Terms of Service
  • Cookie Policy
  • Security Overview

Copyright © 2025 Leasecake Inc. All Rights Reserved. Patent Pending