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Cafecitos boom: numbers and prices behind the growing demand for gastronomic establishments - Infobae
Source:
www.infobae.com
October 04, 2024
Despite the economic context, franchises and designer brands continue to be the ones that demand more premises in CABA
By Jose Luis Cieri
Cafes are spreading across the city. Location is crucial, as it directly influences visibility and foot traffic.
In the last two years, the search for commercial premises for rent for gastronomic businesses has experienced a marked growth, especially for franchises and signature brands. The phenomenon is not only local and is also observed in countries such as Spain, Mexico, Colombia and Chile, among others.
Food franchises, fast food chains, ice cream parlors and coffee shops offer a sense of security to investors, which makes them attractive even in times of economic crisis.
Daniel Arce , consultant and developer of Franquicias que Crecen, highlighted to Infobae that the location is considered optimal if during peak hours more than 10 people pass by the premises per minute in the city of Buenos Aires. “In addition, a premises on a corner offers greater visibility, and it is recommended that it have at least 5 meters of frontage. Investing in a large sign is also advisable to increase visibility,” he said.
The size of the premises is another determining factor. For a catering business, a minimum of 100 square meters is suggested to accommodate enough tables and recoup the investment.
In the case of a delivery location, a 50 m2 space could be sufficient, while for those with sales peaks, a 70 m2 location may be necessary to ensure efficient operation.
Buenos Aires' avenues are strategic points for gastronomic businesses due to the constant flow of people and vehicles. "Corrientes, Santa Fe, 9 de Julio and Callao are especially attractive for these businesses. However, the value of rents in these areas tends to be higher due to their privileged location," Arce added.
Premises located in areas of high pedestrian and vehicular traffic usually have a higher rent.
Before renting a commercial space, it is essential to consult with a property manager to ensure that the space is suitable for the desired sector.
According to Arce, the market is changing and unique opportunities are emerging. “The most successful stores have a team focused on product, marketing and training. Traditional or single-owner businesses have a hard time competing, leaving stores available for chains that gain more space,” he said.
Arce explained that the condition of the premises and the necessary works can influence the price. “In some franchises, the rental value is adjusted according to specific products, such as the volume of ice cream in ice cream parlours, to update it according to inflation.”
The demand for commercial premises is high, especially for those between 50 and 150 m2 in neighborhood areas with a large influx of people, although not located on the main avenues of Buenos Aires.
The important thing is that both food businesses and cafes have spaces to place shelves or furniture where the products offer good visibility to customers.
Prices vary depending on the neighborhood, the surface area and the characteristics of the property, and range between 1 and 3 million pesos, with quarterly adjustments in contracts for properties larger than 50 m2.
Ariel Yeger , from Yeger Negocios Inmobiliarios, explained that the growth of the gastronomic sector and changes in consumer habits drove this demand. “We see several entrepreneurs with little capital who opt for franchises to have support and know-how , while those with experience in the sector launch their own brand. In the first case, we find groups of friends or family, and in the second, former employees of closed shops who decide to start their own path,” he explained.
The most sought-after neighborhoods for opening restaurants are Palermo, Villa Crespo, Almagro and Caballito.
Yeger explained that entrepreneurs look for premises near attractions such as parks, colleges and health centers. In addition, premises on corners with wide sidewalks and the possibility of an outdoor deck are highly valued, especially on streets without bike lanes or bus traffic.
Commercial contracts usually have terms of 3 to 5 years. If the premises need adjustments or renovations, a month's grace period is generally granted.
As for guarantees, it is common to accept properties in CABA, although it is recommended to use private surety bonds, as they provide greater flexibility and security for both owners and tenants.
The most common adjustment for commercial rents is quarterly, based on the Consumer Price Index (CPI).
There are businesses that place wooden decks on sidewalks to place tables and chairs.
“This public index is considered fair for both parties, as it reflects variations in inflation and maintains a balance in long-term agreements,” Yeger added.
Premises in high-traffic areas typically have higher rents.
Setting up a food business can vary significantly in cost.
A small coffee shop franchise may require an average investment of around USD 45,000, while a low- cost pizza or empanada franchise may cost approximately USD 25,000.
Franchises usually offer turnkey premises, which means that the property is delivered equipped to begin operating.
It is essential to define whether the establishment will be for delivery or assembly only, or if it will have tables to receive customers. This directly affects the investment, since a kitchen equipped with display refrigerators, stainless steel work tables, cold rooms and ovens is much more expensive than an assembly business, such as sushi restaurants.
“Although the costs of signage and other elements are important, they do not have that much impact on the total investment,” Arce concluded.
www.buysellba.com
Source:
Boom de cafecitos: números y precios detrás de la creciente demanda de locales gastronómicos
A pesar del contexto económico, las franquicias y marcas de autor continúan siendo las que demandan más locales en CABA
www.infobae.com
October 04, 2024
Despite the economic context, franchises and designer brands continue to be the ones that demand more premises in CABA
By Jose Luis Cieri
Cafes are spreading across the city. Location is crucial, as it directly influences visibility and foot traffic.
In the last two years, the search for commercial premises for rent for gastronomic businesses has experienced a marked growth, especially for franchises and signature brands. The phenomenon is not only local and is also observed in countries such as Spain, Mexico, Colombia and Chile, among others.
Food franchises, fast food chains, ice cream parlors and coffee shops offer a sense of security to investors, which makes them attractive even in times of economic crisis.
Daniel Arce , consultant and developer of Franquicias que Crecen, highlighted to Infobae that the location is considered optimal if during peak hours more than 10 people pass by the premises per minute in the city of Buenos Aires. “In addition, a premises on a corner offers greater visibility, and it is recommended that it have at least 5 meters of frontage. Investing in a large sign is also advisable to increase visibility,” he said.
The size of the premises is another determining factor. For a catering business, a minimum of 100 square meters is suggested to accommodate enough tables and recoup the investment.
In the case of a delivery location, a 50 m2 space could be sufficient, while for those with sales peaks, a 70 m2 location may be necessary to ensure efficient operation.
Buenos Aires' avenues are strategic points for gastronomic businesses due to the constant flow of people and vehicles. "Corrientes, Santa Fe, 9 de Julio and Callao are especially attractive for these businesses. However, the value of rents in these areas tends to be higher due to their privileged location," Arce added.
Premises located in areas of high pedestrian and vehicular traffic usually have a higher rent.
Before renting a commercial space, it is essential to consult with a property manager to ensure that the space is suitable for the desired sector.
According to Arce, the market is changing and unique opportunities are emerging. “The most successful stores have a team focused on product, marketing and training. Traditional or single-owner businesses have a hard time competing, leaving stores available for chains that gain more space,” he said.
Securities and commercial contracts
The price of a suitable restaurant is influenced by several factors, such as location, visibility and high traffic of people.Arce explained that the condition of the premises and the necessary works can influence the price. “In some franchises, the rental value is adjusted according to specific products, such as the volume of ice cream in ice cream parlours, to update it according to inflation.”
The demand for commercial premises is high, especially for those between 50 and 150 m2 in neighborhood areas with a large influx of people, although not located on the main avenues of Buenos Aires.
The important thing is that both food businesses and cafes have spaces to place shelves or furniture where the products offer good visibility to customers.
Prices vary depending on the neighborhood, the surface area and the characteristics of the property, and range between 1 and 3 million pesos, with quarterly adjustments in contracts for properties larger than 50 m2.
Ariel Yeger , from Yeger Negocios Inmobiliarios, explained that the growth of the gastronomic sector and changes in consumer habits drove this demand. “We see several entrepreneurs with little capital who opt for franchises to have support and know-how , while those with experience in the sector launch their own brand. In the first case, we find groups of friends or family, and in the second, former employees of closed shops who decide to start their own path,” he explained.
The most sought-after neighborhoods for opening restaurants are Palermo, Villa Crespo, Almagro and Caballito.
Yeger explained that entrepreneurs look for premises near attractions such as parks, colleges and health centers. In addition, premises on corners with wide sidewalks and the possibility of an outdoor deck are highly valued, especially on streets without bike lanes or bus traffic.
Commercial contracts usually have terms of 3 to 5 years. If the premises need adjustments or renovations, a month's grace period is generally granted.
As for guarantees, it is common to accept properties in CABA, although it is recommended to use private surety bonds, as they provide greater flexibility and security for both owners and tenants.
The most common adjustment for commercial rents is quarterly, based on the Consumer Price Index (CPI).
There are businesses that place wooden decks on sidewalks to place tables and chairs.
“This public index is considered fair for both parties, as it reflects variations in inflation and maintains a balance in long-term agreements,” Yeger added.
Access
It is recommended that the rental contract be aligned with the franchise contract, which according to Argentine law, has a minimum term of 4 years. For significant investments, it is common to establish terms of up to 10 years.
Premises in high-traffic areas typically have higher rents.
Setting up a food business can vary significantly in cost.
A small coffee shop franchise may require an average investment of around USD 45,000, while a low- cost pizza or empanada franchise may cost approximately USD 25,000.
Franchises usually offer turnkey premises, which means that the property is delivered equipped to begin operating.
It is essential to define whether the establishment will be for delivery or assembly only, or if it will have tables to receive customers. This directly affects the investment, since a kitchen equipped with display refrigerators, stainless steel work tables, cold rooms and ovens is much more expensive than an assembly business, such as sushi restaurants.
“Although the costs of signage and other elements are important, they do not have that much impact on the total investment,” Arce concluded.
www.buysellba.com
