the future of the hospitality industry

Prior to 2008, the idea of renting out your home or room to a stranger was considered ludacris.  Now AirBnb is a 31 billion dollar tech company. 

​

Prior to 2013, the idea of delivering any other food than pizza or Chinese was unheard of.  Now Doordash, UberEats, and Postmates are billion dollar companies.

​

The hospitality industry is in a similar transformation/evolution.  Food halls, ghost kitchens, cloud kitchens, shared kitchens, pop up restaurants are on the rise.

​

The COVID-19 pandemic has forced thousands of small businesses to close their doors for good.  Now, more than ever, the hospitality industry has to think "outside the box" and prepare for a new "normal".  As takeout, curbside service and delivery become the new norm, the necessity for a full dining area has been greatly reduced.       

​

We believe the pop up shop is the future of the retail/hospitality industry. Consumers don't blink an eye when they see a bank in a grocery store, or Amazon in Kohls.  Why should consumers blink an eye when they see two entrepreneurs under the same roof?      

​

Any business owner that has experienced the process of leasing a commercial location can tell you it is an expensive and stressful proposition.  Let's assume you wanted to rent a modest 1700 sq. ft. space in a busy retail area.  For prospective, Smoothie King and Subway are typically this size. 

Using current market rates in our immediate area, the rent at a location of this size would easily be in excess of $5,000 per month (without utilities and expenses).  If you're skeptical, just call. 

​

Now let's take a look at a bakery/pasty/candy business.  We can use Smoothie King and Subway as continuing examples.  How often do you see patrons dining in at a bakery, candy shop, Smoothie King, or Subway?  If you said "not often" you'd be correct.   

​

Let's take a look at the economics of a lease: 

Lease Down Payment/Security Deposit: $10,000-$15,000

Utility Deposits: $1,000 - $2,000

Finish Out: $10,000 - $25,000

Permits: $500 - $1500

Fixtures: $5,000 - $15,000

TOTAL UPFRONT INVESTMENT: $50,000.00+

​

​

These upfront costs do not include the fixed monthly costs of:

Internet: $100

Utilities: $2500

Grease Trap: $125

VentaHood: $100

Fire Suppression Inspection/Maintenance: $100

Security: $50

Alarm: $30

Rent: $5000

Maintenance: $200

Satellite Music/TV: $150

AVERAGE MONTHLY FIXED COSTS: $8,000.00+

​

If you're ready to take you business to the next level, we invite you to submit an application.