How to Start Up a Turnkey Real Estate Restaurant Enterprise and Generate Cashflow
Whether you’re planning for your retirement or want to supplement your current income, earning a passive income is always crucial to achieving these goals.
That said, starting a small business enterprise can be a good idea. If you’re passionate about food, that should give you an idea of what business venture you can try.
But you don’t have to limit yourself with a small business.
Real estate investment also offers great returns. You’ll often notice how investing in turnkey real estate properties is one of the best passive income tips that investment experts will give.
So, how do you connect turnkey property investing with your love for food?
Why not start a turnkey restaurant business?
What is a Turnkey Restaurant Business?
Turnkey properties are real estate properties that are almost ready to occupy, and all it takes is to “turn the key” to start earning from them.
A turnkey restaurant business could be a big name franchise or an existing restaurant that continues to operate but is already available for sale in the real estate market.
Starting a franchise involves a hefty contract price and other fees, but running the business is easier than with an unknown brand.
On the other hand, when you buy a turnkey restaurant, less start-up effort is needed, although you may have to do some minimal renovations and management adjustments.
There are various reasons why a previous owner sells a restaurant.
It could be due to dwindling sales, residence relocation, or other personal issues, just to name a few.
Whether you’re going for a franchise or an existing restaurant in town, you have to be ready to make an investment so you can start earning passive income soon.
Starting Your Own Turnkey Restaurant Enterprise
Your Choice of Cuisine
Your love for food, and possibly cooking, is what ultimately brought you to think of investing in a turnkey restaurant business.
But when it comes to buying a well-known brand of franchise or an existing restaurant, you first have to be more specific about what type of food or cuisine you want to sell to your customers.
Franchises usually come in fast food chains that serve your typical hotdogs, burgers, pizzas, and fries. If you love gourmet and other fine dining delicacies, you can find restaurants on sale that are serving these kinds of cuisine.
Hunting for Turnkey Restaurants or Franchise
With the help of technology, it’s now easier to find available real estate properties and contact realtors for help.
You can search online through news ads, real estate marketplaces, and websites that post restaurants for sale. If it’s a franchise that you want, you can contact a person-in-charge for franchise applications.
But first, try to survey what franchise brand is most likely to attract customers in your target location.
Identify What Needs to be Improved
An existing restaurant already has the dining area and the kitchen in place. You’ll be lucky if the current staff decides to stay under your management.
However, you’ll still have to deal with the problems left behind by the previous owners. You have to identify these problem areas and come up with solutions to keep the business alive.
If there are areas that need fixing, have a contractor make the necessary repairs. If you want, you can also give the place a make-over with the help of a contractor and an interior designer.
You can also check if there’s a need to retrain your service crew and upgrade the existing management systems.
With a franchise, all you have to worry about are the operations, but you can’t slack off with management if you want to keep earning.
Consider Your Budget
The investment and start-up costs for a turnkey restaurant business can vary on the area and the property size.
These are some of the things that you need to consider when it comes to the budget you’re going to allocate for this investment.
You have to be certain of your budget and look for turnkey restaurants that cost within that amount.
Generating Income from Your Turnkey Restaurant
Returns from Sales
The most direct way of earning income from a turnkey restaurant is to maintain high sales or a steady flow of customers.
Of course, upon starting, this is one of the challenges that you’ll have to face.
If the existing business always had a steady number of customers, you have to do your best to keep regular customers coming even when there’s a change in management.
You can also strive to attract more customers by improving your marketing strategies.
Boost Digital Marketing
One surefire way of increasing sales is boosting marketing efforts. Nowadays, the most effective way of generating leads is through digital marketing.
You can do this by starting a website for your turnkey restaurant and powering it up with search engine optimization or SEO.
The more visible your restaurant is on search engines and social media websites, the easier it is to attract potential leads.
Put It Up for Rent
If you want to be less hands-on and earn a passive income from your turnkey restaurant, your best option is to turn it into a rental space.
Have the place fixed and prepped for interested restaurateurs.
Once you acquire more profit from your rental earnings, you can invest in more turnkey restaurant properties and gain multiple passive income flows from them.
There’s profit even in the most seemingly rundown businesses around. It’s a matter of seeing the silver lining in every bad situation, such as a recession.
Some restaurants end up closing during economic lows or for other various reasons, but a good investor can see the profit potential from these properties.
If you want to join the investment industry, investing in a turnkey restaurant should be on your list.