Found A Retail Space. Now What?

Business By cakesweetiecake Updated 30 Jan 2010 , 12:03pm by Mike1394

cakesweetiecake Posted 29 Jan 2010 , 7:29pm
post #1 of 12

I came across a former ice cream shop that has been on the market for sale for some time now. I spoke to the realtor and the seller is willing to lease it. In discussing the property, the realtor informed me that there is a 3 compartment sink there. It's a pretty small place and will be used for baking ONLY.

I have an appointment to see it tomorrow. What do I need to do next? I have somewhat of an idea, but I want to make sure all of my bases are covered before agreeing to lease this place.

Thanks in advance.

11 replies
tiggy2 Posted 29 Jan 2010 , 7:36pm
post #2 of 12

You need to check with the health dept. to find out what you need

cupcakemkr Posted 29 Jan 2010 , 7:42pm
post #3 of 12

Health dept. and zoning too. Did they just sell the ice cream retail there or produce it - kitchen requirements are different for each and your health department will be able to tell you exactly what they want in your kitchen and public areas.

When I went to mine with the property address the zoning guys were checking to see if the septic would work with the operation (unfortunately not on town sewer icon_sad.gif ) and the health department director wrote me out a list of all everything the space would need as I was waiting.

cakesweetiecake Posted 29 Jan 2010 , 8:15pm
post #4 of 12
Quote:
Originally Posted by tiggy2

You need to check with the health dept. to find out what you need




Actually, I have a packet from them. I requested it when I was considering renting space from a caterer who was in business. I'll pull it out and review it. Thanks!

cakesweetiecake Posted 29 Jan 2010 , 8:17pm
post #5 of 12
Quote:
Originally Posted by cupcakemkr

Health dept. and zoning too. Did they just sell the ice cream retail there or produce it - kitchen requirements are different for each and your health department will be able to tell you exactly what they want in your kitchen and public areas.

When I went to mine with the property address the zoning guys were checking to see if the septic would work with the operation (unfortunately not on town sewer icon_sad.gif ) and the health department director wrote me out a list of all everything the space would need as I was waiting.




Um, I guess I need to find out the specifics. I am pretty sure they just sold it. But, I will double check that.

I guess my question is really what do I need to do before committing to the lease - what order to do what. I dont want to commit to this place only to find out that it wont work. I can call the health department first thing on Monday (after seeing the place tomorrow). I guess my other question was just what does the CITY handle and what the COUNTY handles. I am sure I will find this out when I pick up the phone and start making phone calls.

Mensch Posted 29 Jan 2010 , 8:18pm
post #6 of 12

I posted this in another thread. There are most likely things I have forgotten/repressed, so you other bakery/storefront owners chime in.

These are just overhead costs, not even counting any baking ingredients.

monthly costs (some of these are once a year, or even just 2-3 times a year):

rent, insurance, loan payments, electricity, telephone (land-line + cell), broadband, website costs, cleaning supplies (floor cleaner, glass cleaner, universal cleaner, paper towels, dish soap, hand soap, hand disinfectant, dish detergent/drying detergent for dishwasher, toilet paper, toilet cleaner, mop, broom, dustpan, laundry detergent), credit card machine + fees, company credit card fees, assorted bank fees, sidewalk salt, alarm system costs, accountant, garbage collection, office supplies (paper, pens, paper clips, staples, post-its, scissors, mat knife, paper rolls for cash register/credit card machine, ribbon for cake/pastry boxes, stamps, envelopes), edible image ink cartridges/sheets, packaging (cake/pastry boxes in different sizes, bread bags etc), cost for yearly HD inspection, garbage bags, advertising/marketing (business cards, brochures, website), bridal show fees, fees from city planning office for sidewalk signs, telephone catalog ad, take-away cups/lids for coffee drinks, light bulbs



basic start-up:

purchase of premises, renovating costs (plumber, electrician, carpenters etc), oven, telephones, refrigerators (3 are required); including a special 'dry' fridge for fondant cakes, freezers (2 are required), 2 hand sinks, cash register, credit card machine, double sink, commercial dishwasher, commercial espresso machine (2-group), commercial coffee mill, take-away cups/lids for coffee drinks, 20 qt standing mixer, safe, broadband, locksmith, alarm system, computer, printer, scanner, website costs, digital camera, edible image software and printer, office supplies (stapler, staples, paper, pens, paper rolls for register/CC machine, ribbon for cake/pastry boxes, stamps, envelopes), food handlers license (for me and all employees), cost for HD inspection, display cases, trays to display product, SS work bench (2½ meters long, special order), trash cans, garbage bags, recycling bins, marketing materials (business cards, brochures, magazine ads, website), work chairs (pony chairs, 2), counters, shelves, AC unit, rolling rack, microwave, hot plate, sidewalk signs (plus fees from planning office), signs on building (plus fees from planning office), flags, packaging (cake/pastry boxes in different sizes, bread bags, etc), telephone catalog, all different kinds of bowls and spatulas etc, hand mixer, food processor, lighting fixtures, light bulbs, telephone catalog ad,

cakesweetiecake Posted 29 Jan 2010 , 9:02pm
post #7 of 12

Thanks for the extensive list. icon_biggrin.gif

loriemoms Posted 29 Jan 2010 , 9:19pm
post #8 of 12
Quote:
Originally Posted by cakesweetiecake

I came across a former ice cream shop that has been on the market for sale for some time now. I spoke to the realtor and the seller is willing to lease it. In discussing the property, the realtor informed me that there is a 3 compartment sink there. It's a pretty small place and will be used for baking ONLY.

I have an appointment to see it tomorrow. What do I need to do next? I have somewhat of an idea, but I want to make sure all of my bases are covered before agreeing to lease this place.

Thanks in advance.




I am sure a lot of people have answered this but do check with the laws in your state. For instance, you might not fall under the health department if you are just doing cakes and nothing else. in NC, even retail spaces fall under dept of argriculture if you are just doing custom cakes and not a deli or cafe or any of that stuff. Check with your local zoning, make sure the space is still zoned for retail. (yes, do check!) also, you probably will be required to have a grease trap. A lot of ice cream places may not have had one. I also ran into another surprise when I was hunting for a space. There was a grocery store in the shopping center that had a do not compete clause that no bakeries were allowed. (deli's were allowed, sub shops, and even ice cream shops, but no bakeries or places like starbucks) Also, have a good contractor look at the place for you. We were thinking of renting an old cookie shop and they has a 6 gallon water heater! (NO kidding!) and the electric wasn't enough to do a walk in or even an electric oven (they used gas) Find out if the venting will handle a vent hood.

Anyway, good luck!!!

brincess_b Posted 29 Jan 2010 , 9:21pm
post #9 of 12

you say baking only, where will you do the decorating? anywhere other than the liscenced premises may not be allowed.
xx

cakesweetiecake Posted 29 Jan 2010 , 9:25pm
post #10 of 12
Quote:
Originally Posted by brincess_b

you say baking only, where will you do the decorating? anywhere other than the liscenced premises may not be allowed.
xx




Sorry! That's what I meant. icon_lol.gif Baking, decorating, etc. It is a storefront, but I am looking to do orders only for now.

cakesweetiecake Posted 29 Jan 2010 , 9:44pm
post #11 of 12
Quote:
Originally Posted by loriemoms

Quote:
Originally Posted by cakesweetiecake

I came across a former ice cream shop that has been on the market for sale for some time now. I spoke to the realtor and the seller is willing to lease it. In discussing the property, the realtor informed me that there is a 3 compartment sink there. It's a pretty small place and will be used for baking ONLY.

I have an appointment to see it tomorrow. What do I need to do next? I have somewhat of an idea, but I want to make sure all of my bases are covered before agreeing to lease this place.

Thanks in advance.



I am sure a lot of people have answered this but do check with the laws in your state. For instance, you might not fall under the health department if you are just doing cakes and nothing else. in NC, even retail spaces fall under dept of argriculture if you are just doing custom cakes and not a deli or cafe or any of that stuff. Check with your local zoning, make sure the space is still zoned for retail. (yes, do check!) also, you probably will be required to have a grease trap. A lot of ice cream places may not have had one. I also ran into another surprise when I was hunting for a space. There was a grocery store in the shopping center that had a do not compete clause that no bakeries were allowed. (deli's were allowed, sub shops, and even ice cream shops, but no bakeries or places like starbucks) Also, have a good contractor look at the place for you. We were thinking of renting an old cookie shop and they has a 6 gallon water heater! (NO kidding!) and the electric wasn't enough to do a walk in or even an electric oven (they used gas) Find out if the venting will handle a vent hood.

Anyway, good luck!!!




Thanks a bunch for the tips. This info truly helps. As far as the health dept, I researched last year when I was going to rent space from a caterer and found that I did have to use the County Board of Health.

Mike1394 Posted 30 Jan 2010 , 12:03pm
post #12 of 12

HD will tell you, you need handwashing sinks, mop sinks, that kind of thing. Your food code will tell you what you need. What you really need is to find out from the building code department if it's doable. You need an electrician to look over the place to see if the wiring will do what you need it to do. The building Dept. will tell you if you need a vent system, or not.

Mike

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