M id A tlantic Real Estate Journal — Washington, DC — Delaware —September 2025 — 21 D elaware
www.marej.com
By Sean McNeice, LMT Commercial Realty, LLC Should you start a restaurant from scratch or buy an existing one?
A
lmost every culinary school graduate, bar- tender, restaurant
• Immediate Cash Flow Unlike a new restaurant that takes time to build momentum, a running business brings in revenue from day one. With the right transition plan, you can maintain steady cash flow and potentially grow it. Plus, banks and investors often view existing businesses as safer bets, making financing easier to secure. Pros of Starting from Scratch • Complete Creative Control When you start from zero, ev- erything is your decision — the concept, the name, the layout, the vibe, the menu, the service
style, the branding — all of it. That kind of freedom is invalu- able if you have a strong vision you want to bring to life. • Tailored to Your Needs Instead of inheriting someone else’s layout or design quirks, you get to build a space that’s optimized for your workflow, ser - vice model, and guest experience. • Potential Cost Savings (Sometimes) In some cases, starting from scratch can be cheaper — es- pecially if you secure a new or “clean shell” location with mini - mal renovation needs. That said, it’s not uncommon these days to see turnkey restaurants
(existing spaces with all the equipment and infrastructure in place aka second-generation restaurant) available at very attractive prices. • No Baggage You’re not inheriting anyone else’s bad Yelp reviews, outdat- ed branding, or broken relation- ships with vendors and staff. You start with a clean slate. The Bottom Line Today, higher construction costs have made new builds and major renovations far more expensive than in the recent past. That’s why we generally recommend acquiring an exist - ing restaurant business rather
than opening a new one. Whether you choose to buy an existing restaurant or cre- ate your own from the ground up, the reality is the same: it will take serious work, com- mitment, and resilience. There’s no shortcut to success in the hospitality world — but the path you choose should match your vision, your risk tolerance, and your resources. Either way, it will be your name on the door, and your passion driving the business. Sean McNeice is a com- mercial real estate spe- cialist at LMT Commercial Realty, LLC. MAREJ
manag e r , or naturally hospitable person has, at some point, dreamed of owning their own restau- rant. It often starts with
Sean McNeice
the classic “If I had my own place...” conversation — and then, one day, it becomes reality. When that moment hits — when the dream starts turning into actual plans — a would- be restaurateur has some big decisions to make. One of the biggest? Deciding whether to buy an existing restaurant or start one from scratch. Each path comes with its own pros and cons. Here are some key points to consider as you weigh your options. Pros of Buying an Existing Restaurant • Lower Risk An established restaurant already has a proven track record. If the business is cur- rently operating and profitable, you’re stepping into something that has already shown it can succeed in the market. • Built-in Brand and Cus - tomer Base When you acquire a restau - rant, you’re also buying its brand recognition, loyal cus- tomers, and reputation — all of which take time (and money) to build from scratch. Even if you plan to rebrand eventually, it’s helpful to start with something that’s already working. • Staff in Place Staffing is arguably your most valuable resource. Even if the current team isn’t Michelin Star material, they’re trained, fa- miliar with the operations, and showing up to work — which gives you a running start. • Established Infrastructure Renovations and installa- tions can be outrageously ex- pensive — from kitchen hoods to sprinkler systems. With an existing space, those elements are already in place. You can operate as-is while making updates over time. Also, the permitting and licensing and inspections that come along with new construction have al- ready been done! Construction delays like these can help burn through budgeted money that you will need when the place is actually open.
Commercial Real Estate Services Serving Delaware, Pennsylvania, Maryland and Around the Globe!
Joe Latina, SIOR Managing Principal
Chris Moore, CCIM Managing Principal, Broker
Jim Tancredi Principal
Sales & Leasing Tyler Foresta, Sean McNeice, Mitch Berkowitz and Zach Rempfer
Business Specialist and DE Liquor License Consultant Mary Ann Heesters Linda Brown Director of Marketing and Sales & Leasing Reneé Nichols
1117 N. Franklin Street Suite A Wilmington, DE 19806
+1 302 414 1000 www.LMTCRE.com
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