Variable Rent Model for Restaurants

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Variable Rent Model for Restaurants

Inspired by a conversation on:

Invest Like the Best with Patrick O'Shaughnessy

Invest Like the Best with Patrick O'Shaughnessy

Sean Feeney - Reinventing the Restaurant Business

Host: Patrick O'Shaughnessy

Timestamp: 18:06 - 22:09

Listen to Episode • View Podcast • All Ideas from Invest Like the Best with Patrick O'Shaughnessy

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Feather Flow

Direct Quote

"We're just going to tie it to sales."

Summary

Sean Feeney emphasizes the need for a variable rent model in the restaurant industry, which ties rent payments to sales rather than a fixed amount. This model aligns the interests of both landlords and restaurant operators, incentivizing landlords to maintain and improve the property, as their earnings will depend on the restaurant's performance. This approach is particularly beneficial in fluctuating markets, such as during winter months when sales may dip. For new restaurant entrepreneurs, adopting this model could reduce financial pressure and allow for more sustainable growth while enhancing relationships with landlords. Entrepreneurs can implement this by negotiating rent agreements based on projected sales and establishing clear terms with landlords for performance-based adjustments.

Categorization

Business Model
Marketplace
Target Founder
Generalist
Difficulty
Medium
Time to Revenue
1-3 months
Initial Investment
< $100

Scores

Clarity
8/10
Novelty
7/10
Feasibility
8/10
Market Potential
9/10
Evidence
7/10
Overall
7.8/10
Found on September 5, 2025 • Analyzed on September 5, 2025 10:22 AM

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Similar Ideas

Community-Driven Restaurant Initiatives

Sean Feeney discusses the importance of engaging with the local community through initiatives that give back while also driving business. By dedicating a portion of revenue to community projects, like improving local cleanliness or sponsoring youth sports, restaurants can create a deeper connection with their patrons. This community-driven approach not only enhances the restaurant's reputation but also fosters customer loyalty. Entrepreneurs can implement this by identifying local needs, such as sponsoring events or creating programs that encourage patron engagement, like offering discounts for those who volunteer in the community. This strategy not only boosts sales but also creates a positive impact locally.