In Toronto’s real estate market, is building ownership the secret sauce to restaurant longevity?

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Many of Toronto's oldest restaurants were able to buy their building more than a decade ago when property prices were much more affordable. But in today’s real estate market, how often does that happen now?

This got me wondering: What’s going to happen to the city’s dining scene if the talent is being priced out every few years? If a restaurant opens today, can it ever reach a 30- or 40-year anniversary like previous ones have?

Stephen Murphy of OMG Real Estate Team, which specializes in restaurant properties, says it’s more common now for buyers to think of buildings as an investment property, rather than a place to open up shop and live. “It’s not a trend that are buying their buildings. It’s still a desire, sure, but I don’t know a lot of restaurateurs who have half a million for a building,” he says. “Back in the day, it was the norm to have the owner-operator whose family lived above the businesses.

“Owning the building definitely helps us to invest in the business because you know you’ll be there 10 years from today. That mindset is one huge benefit,” he says, adding that the bakery recently underwent a large renovation and added a deli and hot table counter. “It helps us make decisions like renovations easier, because we can put everything into it, which hopefully means the return would be a lot more.

“Not every restaurant owner wants to be a property owner or has the ability to,” she says. “It requires a much larger percentage on a deposit and a whole other skill set. A baker just wants to bake. It’s not an inclusive approach to economic development and creates inequity.

 

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When are you going to feature the restaurant owners who lost everything because of the lockdowns and restrictions you called for and promoted? NoAmnestyForCovidTyranny

They need to be quiet about that if lady boy Trudo find out problems ask the business farmer he owns his own land he makes to much milk he has to pour 30,000 litres in the drain add that up

You forgot to mention the Patrician Grill on King East. Also known as the location of some episodes of the series “SUITS” featuring the actress now known as the Duchess of Sussex. A great old diner popular with a great variety of folks - cops, shift workers, bookies…

It is stupid to own a property as a restauranteur anyways. 🤦🏽‍♂️

This is what happens when speculations with housing, commercial RE and many other important values for functioning of cultured/civilized society is allowed under 'investment' guise. You via your govts allowed neo liberal capitalism to ruin it for you. Read about it. It is evil.

'Toronto’s biggest attraction is its food scene and if places shut down, that’ll be a real shame.' So many restaurants have seen huge rent increases- what happens when they're priced out? Commercial tenants need basic rights:

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