When it comes to running a business, few details (if any) matter more than location. This is especially true in the restaurant industry.
In Toronto, many restaurateurs have their sights set on downtown, and while there are many advantages to opening a restaurant in the core, there are disadvantages too.
In this blog, we’ll look at some of the most notable pros and cons of running your restaurant downtown.
Looking to get away from the hustle and bustle? Explore the perks of running a restaurant in the suburbs.
The Pros
Let’s start with the pros. Why should you consider opening a restaurant in Toronto’s core?
It’s a Great Scene
Downtown Toronto is in many ways the heart of the city’s food scene. Of course, there are countless great neighbourhoods (with equally fantastic restaurants) all over town, but downtown really feels like a league of its own.
As a restaurateur, being a part of the downtown scene has its perks. For starters, you’ll find yourself among a community of local tastemakers and business owners, who can keep you inspired and motivated while bringing your unique vision to life.
You’ll also benefit from downtown’s established reputation for quality dining. Local foodies will be eager to check out the scene’s newest addition when you finally open your doors.
More Foot Traffic
Another perk of running a restaurant in downtown Toronto is the foot traffic. On top of being the city’s commercial and economic centre, it’s also where you’ll find some of its best cultural attractions. No matter the time of year, this area is usually bustling with professionals, students, tourists, and all kinds of hungry people. As a restaurant owner, you can leverage this natural exposure to attract more customers to your business.
Some parts of downtown see more foot traffic than others. If you’re really looking to maximize pedestrian exposure, you’ll want to work with a restaurant real estate agent who understands the nuances of the downtown scene.
Easy Access
Of course, not everyone who supports the downtown food scene actually lives or works in the area. That said, another major advantage of downtown Toronto is that it’s generally easy to get to.
Whether you’re driving in or taking public transportation, it’s one of the city’s most accessible areas. Not only does this simplify commutes for you and your team, but it also means customers from all over the city can get to your restaurant without hassle.
Looking for complementary restaurant real estate resources? Check out these other resources from our blog – on the house!
- How Restaurant Real Estate is Evolving
- Restaurant Sales: What’s on the Table During Negotiations?
- Key Terms in Restaurant Real Estate You Should Know
The Cons
There are many perks to having a restaurant downtown. However, there are a few drawbacks too. If you’ve got your eye on the city centre, you’ll want to consider these factors before you start searching for a restaurant space.
High Real Estate Costs
Because there are so many advantages to running a restaurant downtown, there’s a super high demand for commercial properties in the area. As you might expect, this demand translates to premium prices.
There’s no sugar coating it, commercial real estate in downtown Toronto is not cheap, and turnkey restaurant spaces in particular can be expensive.
This doesn’t mean that running a restaurant in the core can’t be profitable, however, it will require greater resources upfront and a disciplined financial plan in the long term.
Less Space
Another downside to operating a food business in downtown Toronto is that there’s less space.
While the area’s density is in certain ways part of its appeal, it can make everyday restaurant operations a little more difficult. Downtown properties are typically smaller, narrower, and have limited storage space compared to larger developments outside of the core.
If you decide to open up shop downtown, you may need to get creative in how you utilize your business space to keep operations smooth while still turning a profit.
Traffic Jams & Parking Problems
Speaking of density, if you’ve ever driven downtown, you know that traffic can be a problem. The same goes for finding parking.
These things aren’t just a minor nuisance; they can create real challenges for your business. For example, delayed supply deliveries can cause disruptions or service limitations, impacting both you and your customers.
Curious about maximizing your restaurant space? Check out these helpful resources.
- Restaurant Design: 5 Tips for a Stunning and Efficient Space
- How to Make Your Small Restaurant Feel Big
- Restaurant Interior Design: DIY vs Professional
Before You Start a Restaurant in Toronto
If you’re looking to open a restaurant, you’ll want a professional expert in your corner. That’s where we come in – Carve Real Estate.
As professional specialists, we know the unique ins and outs of commercial real estate and Canada’s restaurant industry. Not only can we help you find the perfect spot to bring your dreams to fruition, but we’ll also serve as your long-term advisor on all things restaurant-related, including financing.
Have more questions about restaurant ownership? We can help! Send us an email at ryan@carverealestate.com or give us a ring at 416-618-0054 to get started.
