1. What is the Rent-Free Period?

Evaluate what works need to be carried out, how long they will take, and allow for unforeseen delays. Negotiating a sufficient rent-free period can prevent you from becoming liable for rent before your restaurant is ready to open.

2. Do I Have Security of Tenure?

Ensure your lease falls within the Landlord and Tenant Act 1954. This provides you with the statutory right to renew your lease at the end of the term, ensuring you are not obligated to hand the property back to the landlord prematurely.

3. Is There an Exclusivity Clause?

An exclusivity clause can protect your business from competitors opening nearby, especially if your property is in a shopping center or leisure park. This clause ensures that no other restaurant selling the same type of food will open in close proximity, safeguarding your footfall and sales.

4. What Are the Equipment Provisions?

Make sure the lease includes explicit rights to install, locate, and maintain essential equipment such as heating, ventilation, cooling, and air-conditioning units. This is crucial for the operational efficiency of your restaurant.

5. What Restrictions Are in Place?

Understand common lease restrictions, such as those on:

• Causing annoyance or nuisance
• Food smells emanating from the property
• Sale of certain foods
• Placing objects outside the property
• Noise, music, and entertainment
• Trading hours
• Sale of alcohol

These restrictions can significantly impact your restaurant operations, especially if the property is in a mixed-use building with residential units.

6. What Are My Repair Obligations?

Assess the property’s condition to avoid unexpected repair costs. A photographic schedule of condition can limit your repair obligations, ensuring you only need to maintain the property to its original state at the time of lease commencement.

7. Is There a Break Clause and Right to Assign the Lease?

A break clause offers flexibility if you decide not to continue operating from the property. The right to assign the lease allows you to transfer it to another tenant, providing a safety net if your business doesn’t perform as expected.

8. Can I Have Outdoor Seating?

If you need outdoor seating, ensure the lease permits it explicitly. If the pavement area is owned by the landlord, a separate seating license may be required. If owned by the local authority, a pavement license will be necessary.

9. Is the Location and Licensing Suitable?

Choose a property that attracts your target demographic and is accessible, with good transport links and nearby parking. Check for competitors in the vicinity. Ensure you understand the licenses required, such as a PRS license for music, a TV license, and an alcohol license.

10. Can I Operate a Dark Kitchen?

If you plan to operate a dark kitchen (a kitchen that only provides takeaway and delivery services), negotiate lease provisions that allow this. Check if planning permission is needed, as restaurant use doesn’t automatically include the right to provide takeaways under the Town and Country Planning (Use Classes) Order 1987.

By asking these questions, you can secure a lease that supports your restaurant’s success and long-term viability.

For more information please contact Sarah Benjamin at Sarah.benjamin@haroldbenjamin.com