Purchase of a restaurant

[whynoname]

Hi

I have just moved over to Thailand with my Thai partner and we are currently in Ko Lanta on our journeys we have been looking out for business ideas and by chance one has landed on our laps. A restaurant owner has offered us a contract for 10 years at 50,000 Baht a year for the lease. All fittings and staff are in place already. Each time I go to the restauarant it is empty but I think that is down to bad advertising and the end of low season. But it's in a good location and is very clean and nicely kept. The place comes with a very small accommodation. Isn't 50,000 a year far too cheap? Is there a scam going on here? And thoughts and ideas would be greatly appreciated.

[LivinginKata]

Moved to Krabi forum for a better response.

[LivinginKata]

You have to realise that Ko Lanta is extremely quiet much of the year. Really only a 3 month 'high' season and even then it's not so busy.

[whynoname]

Thanks LivinginKata I have heard that high season is six months but I expect that is the restaurant owner trying to make his proposition more appealing. Sitting by the ferry terminal now doesn't look like much work is going into building this bridge.

[grumpyoldman]

Which restaurant is it?

[PiPiFFS]

I am guessing the 5 million is for the lease alone ? How much is the rent, staff salaries, electric etc per month ? As said if you are needing it to make a good profit you need to work on a short high season and be able to sit out the rest of the year.

I have a friend who has a small beach bar restaurant and a few bungalows on the beach on Samui. It is never going to make him rich but he gets to live on a beautiful beach and the bar etc pays for his living expenses and running expenses. He has a small income from back home that goes into the bank for emergencies

[LivinginKata]

I am guessing the 5 million is for the lease alone ? How much is the rent, staff salaries, electric etc per month ? As said if you are needing it to make a good profit you need to work on a short high season and be able to sit out the rest of the year.

I have a friend who has a small beach bar restaurant and a few bungalows on the beach on Samui. It is never going to make him rich but he gets to live on a beautiful beach and the bar etc pays for his living expenses and running expenses. He has a small income from back home that goes into the bank for emergencies

This poster makes a good point. Do you have to pay rent on top ? For sure you have staff and elecric/water costs. At least you would have accomodation in the price.

You have to decide whether you want to make real money or just get by with some sort of external income as back-up. I suspect you are unlikey to make real money and that the owner is hoping for a 500,000 baht up front payment and that you bail out after a couple of years.

[whynoname]

The rent was to be 50,000 per year with no other fees to pay, each year for ten years the rent remained the same, there was a chef and a waitress to pay each month, did not ask how much as I was a bit sceptical as to whether I could get it work or if it was genuine. on the face of it 50,000 a year seems too good to be true but then I got thinking if any customers would come etc. and what if the staff are on contracts to get paid all year around etc. After a few more days on the island I decided it was not a place for me to settle down so have moved on to another part of Thailand. If anyone wants any details of the restaurant if it may be of interest PM me and I will let you now what I can.

[grumpyoldman]

The rent was to be 50,000 per year with no other fees to pay, each year for ten years the rent remained the same, there was a chef and a waitress to pay each month, did not ask how much as I was a bit sceptical as to whether I could get it work or if it was genuine. on the face of it 50,000 a year seems too good to be true but then I got thinking if any customers would come etc. and what if the staff are on contracts to get paid all year around etc. After a few more days on the island I decided it was not a place for me to settle down so have moved on to another part of Thailand. If anyone wants any details of the restaurant if it may be of interest PM me and I will let you now what I can.

Good onya for moving on, it's a half a year season Nov-April in Lanta. Tell you what, early in the week this week, Lanta way quiet, Ao Nang bustling......but no 50,000thb restaurants in Ao Nang currently available

[innerspace]

The rest of the country talks about high and low seasons but are clueless. You havent experienced a low season till you do a lanta low season! 90% of business closed and 1 tourist arrives and word spreads fast!

You either need to make enough in 6 months to pay your rent and living for a year or have a job elsewhere for low season.

That 50k deal was not 4k a month as it seemed, it was 8k since you only get 6 months a year.

That said, lanta is a fantastic place even, just a part time island. Still october so you havent seen it yet, low seasons not over.

[whynoname]

Hi All

How's Koh Lanta at the moment, busy yet? Just going through business ideas I have considered along the way and this one popped into my head?

[grumpyoldman]

Hi All

How's Koh Lanta at the moment, busy yet? Just going through business ideas I have considered along the way and this one popped into my head?

Picking up for sure and the next six weeks sure to be great business there.

But for 95% of the businesses in Lanta, it's a four month season at best, so the question mark you have put at the end of your post is appropo. Business in Lanta is a massive question mark. Better have a very successful December-March and squirrel away your monies made for the rest of the year.