The next step is to create a business plan based on the concept you have determined. The key is your goals, and if you do not make these clear, you may end up doing research for researchʼs sake and analysis for analysisʼs sake. When negotiating a property, the landlord will ask for details about the type of business you are trying to conduct, so the materials you have created here will be important. ・Establishment of the product (menu) Attractive content and appropriate products (menu) are the basis for everything, including price range, turnover, gross profit margin, and customer base. It is also necessary to adapt to the needs and trends of the clientele, and to take into account the materials to be purchased and their costs. ・Location Selection It is said, “In real estate, location comes first, location comes second, location comes third, location comes fourth, and location comes fifth. The first step is to select an area from a broad perspective. Based on the concept, the customer base and distribution routesare also considered. It is also necessary to clarify whether the store should be located in a shopping center, along a street, or on the ground floor of a building.

Once a property has been selected, detailed terms and conditions are negotiated in order to conclude a contract. The agent will handle these negotiations, but it is best to decide in advance to a certain extent where the rent, length of the lease contract, cost sharing, and other conditions should be settled (how much can be conceded or not conceded) before entering into negotiations. This is an important step because once a contract is signed, the contract must basically be fulfilled until the end of the contract period

The CUP (Conditional Use Permit) and ABC License (Alcoholic Beverage Control License) are the main types of licenses and permits that are required to open a restaurant. The CUP (Conditional Use Permit) and ABC License (Alcoholic Beverage Control License) are the main permits required to open a restaurant, but they take time to obtain and can significantly affect the schedule for opening. Another drawback is the potentially lengthy period between application and acquisition. To shorten this period, one method is to purchase an existing store without moving in and take over the rights, permits, and licenses associated with it. Hiring a professional to obtain permits and licenses, if necessary, would also result in cost and time savings.

ABC license stands for Alcoholic Beverage Control License, which is a license to sell alcoholic beverages. In California, you cannot sell alcohol without this license. For restaurants, there are two types of licenses:

(1) Beer & Wine license (license to handle beer, wine, sake, and shochu) and (2) Hard Liquor license (license to handle whiskey, vodka, and other alcoholic beverages with high alcohol content in addition to (1) above). When buying or selling a restaurant, the above licenses may be transferred from the former owner or a new application may be made. In the U.S., however, licenses have become increasingly difficult to obtain in recent years because of the close relationship between alcohol sales and crime rates.

Construction is required to build or renovate a new storefront. To minimize time loss, it is a good idea to discuss some plans with the contractor before signing the lease. In addition, since there are many regulations for restaurants, it is difficult to make general statements about construction costs and timeframes. The amount of money will vary greatly depending on equipment regulations, number of restrooms, design standards for accessibility, securing exhaust duct space, installation of grease traps, etc., and the time it takes to obtain the necessary construction permits and approvals.