Barbados has a thriving tourism sector and there are a number of excellent restaurants for tourists and locals to enjoy ranging from fast food through to fine dining.
If you would like a good investment opportunity, purchasing a restaurant can often be a very profitable business venture.
If you are interested in purchasing an established restaurant, your options are limited as only a handful are ever on the market at any one time and this requires patience while waiting for the right property to become available.
There are many options to consider when buying a restaurant and the location is the key in reaching potential customers. Buying an existing restaurant can be an interesting option as most properties come with additional space often used for your own or your staff's residential purposes.
Buying an existing restaurant has many factors to consider such as the current type of restaurant and whether you want to keep it as is, or whether you will want to refit the interior. You need to consider whether you will you be changing the type of cuisine offered and the existing restaurants cuisine in the area.
Prices for buying existing restaurants vary, and this will depend on the location and is based on the current gross profit of the business. Prices start at approximately $850,000 Barbados dollars for a 3,000 square foot property and go up to $6 million Barbados dollars for a 20,000 square foot property on the west coast.
You may find some restaurant purchases include land associated with the property and the planning permission is already in place for residential developments especially on the west coast, which adds another investment option to the purchase.
One of the best and sought after locations for a restaurant is in St. Lawrence Gap, which has a number of hotels, bars and existing restaurants. This stretch on the south coast is where the majority of tourists will venture for a night out. Restaurants for sale in St. Lawrence Gap rarely come up for sale, but if one does come on the market it will sell for upwards of $5 million Barbados dollars, which can include some kind of residential dwelling within the sale.
With some restaurant sales, you may be able to take on the business, as it exists complete with the management and restaurant staff.
You may decide to purchase another type of property with a plan in turning it into a restaurant; this can be a quicker option if the type or location of the restaurant you are looking for is not available on the market. The only drawback is you will have to apply to Town & Country planning for a change of use. If you have purchased a large house, this is registered as residential use and therefore turning this property into a restaurant will require a change of use from a residential to commercial property.
You will need to comply with all health and safety regulations in order to open an establishment as a restaurant. This can be a long and lengthy process and you must consult an attorney at law to investigate the covenants of the property prior to purchase to ensure you are legally allowed to turn the property into a restaurant.
If you are thinking about opening or owning a restaurant in Barbados you should employ the services of a real estate agent and clearly state the type of restaurant, your investment budget, and the amount of space required for your business venture.