By Will Odwarka
F&B operations are not as simple as some may think. The success rate for new restaurants and cafes is quite low, with only 60% of new starters surviving the first year. This rate drops even further in the second year. This reality is due to various reasons, such as a lack of capital, poor staff management, a poorly developed concept, and failure to understand the level of competition in the market. As a property owner or manager looking to lease space to F&B operators, you must be aware of these risks and cautious in your decision-making.
The Importance Of A Holistic View
When considering potential partners or tenants for your F&B space, looking beyond just their design and food photography is essential. Understanding their approach to success and how they plan to thrive in your location is key. A holistic view of their business, including franchising concepts, will help you make a well-informed decision. Even big-name brands can make mistakes that could impact your overall goals. Consider curating the F&B experience in your location by including a mix of established brands and smaller, unique players.
In today’s competitive market, simply filling a space with a well-known brand may not be enough to attract and retain customers. It is important to align your tenants with the overall vision and experience you want to create for your guests. This requires a deeper understanding of your target audience and the dining options that will resonate with them. Choosing the right F&B operators for your property can save you time and money in the long run.
Leasing F&B Spaces
As an F&B consultant, I have seen firsthand the importance of thorough research and due diligence when selecting tenants for commercial spaces. Relying solely on a brand’s reputation or a potential partner’s appearance is insufficient. By taking a more strategic and thoughtful approach to leasing F&B spaces, property owners can create a diverse and engaging dining experience for their guests while ensuring their tenants’ success.
In conclusion, demystifying F&B operations is essential for owners and managers looking to lease space to F&B operators. By understanding the challenges and risks associated with the industry and taking a holistic approach to selecting tenants, property owners can create a thriving and vibrant dining environment for their guests and lays the foundation for a successful long-term operation within your asset. It is not enough to fill a space with any tenant; thoughtful consideration and thorough research are critical to success in the F&B industry.
Will Odwarka
Will Odwarka is the Founder and CEO of Dubai-based firm Heartatwork Hospitality Consulting since 2019. He was born and raised in Vienna, Austria. He has 30+ years of experience leading international strategic growth and development, Franchise and partner management, and F&B operations. He successfully opened over 1000+ outlets in over 40 countries for renowned global players such as McDonald’s, Starbucks, Burger King, Costa, and Wendy’s and smaller players like Creamscafe and Coffeeshopcompany. He strongly focuses on international market entry for F&B players, brand and investor scouting, and AI in hospitality in the Middle East and Europe. Will Odwarka is a guest lecturer at the Academy of Hospitality in Dubai and trainer at the Gregory Vogt School for retail professionals in Dubai. Furthermore, he is a Co-Owner/Operator of Mozart-Hospitality Management, overseeing the operation and development of new food concepts.
