Setting up a chip shop or looking to buy an existing business?

In this article, we will focus just on buying into an existing fish and chip shop.

Location, location, location.

You have probably heard that expression before. It is the most important part to setting up a fish and chip shop.

• Is the shop on a main road?
• What is the local area like, is there going to be the demand for fish and chips?
• Who will be your competition, not just from an existing fish and chip shop, but from other outlets like kebab shops or even McDonalds?
• What is the local parking like?
• What is the security like?

A wrong location will often result in either poor sales or outright failure.

The Premises

• Does the premises you are looking at have the correct planning rights?

• Is it large enough to house your operation?

• Will you get issues with neighbours about the smell or noise?

Who is the landlord?

Are they a large pension company or an individual / small company that is looking to rent the shop. A large pension company may take a more aggressive view if the rent was not paid on time compared to an individual who owns the property. We have leased many buildings in the past, we would always look to meet the landlord and see first-hand what sort of person they are. Sometimes we have walked away because we feel they would charge us a lot for dilapidations when we move out.

• Term of the shop lease? Make sure you read the lease and understand what you are signing up to. Is there to be a rent increase, is there break clause?

• Longer term plans for the shop / area. Setting up a chip shop is just the start. Say you set up your chip shop and you have a five-year lease, the business is a success and then the landlord decides not to renew the lease. All this hard work could be down the drain if you have to relocate

• What are the rates? This will be a big cost to the business, you need to know clearly what will be the cost of the rates and is there any chance of this cost going up a lot over the next few years?

Fish and Chip Shop Safety

•Security. Will there be a potential problem for vandalism or broken windows? If you are on a main street this may be better than being on a side street.

• Fire regulations and the local council inspections. Will the premises be OK for the cooking you are looking to undertake?

• Heat and ventilation. Fryers and fish shops by default are hot environments to work in. Does the premises provide good heat extraction?

Our team are on hand to help out with any questions you have about setting up a chip shop . Please just call 01494 611 456 or email hello@fishfryerfinance.co.uk for more information.

Thank you for your interest, good luck with your new business.