Corporate News & Perspectives

For most restaurant businesses, success starts long before the first customer walks through the door. It begins with choosing the right location and securing the right lease. Even the best restaurant concept can struggle if the property doesn't support long-term growth or if the lease places unnecessary pressure on the business.

The commercial property market in South Africa continues to change. Consumer shopping habits have evolved, new mixed-use developments are appearing, and landlords are looking for tenants who can bring steady foot traffic and remain successful for many years. This creates opportunities for businesses that take a long-term view when selecting new locations.

At Powers Group, finding the right site is never based on instinct alone. Every location is carefully evaluated using a combination of research, local knowledge and practical experience. While current foot traffic is important, it only tells part of the story.

A busy shopping centre today may not enjoy the same level of success in five years' time. Likewise, an area that appears quiet today could become one of tomorrow's strongest commercial hubs. Understanding where growth is heading is often more valuable than simply measuring where people are today.

When assessing a new location, we consider a wide range of factors. Population growth, planned housing developments, road improvements, nearby schools, hospitals and business parks all help paint a picture of how an area is likely to develop over time. These factors influence where people choose to live, work and spend their leisure time, making them valuable indicators when selecting future restaurant sites.

The relationship with the property owner is equally important. A commercial lease should create value for both parties. Landlords want reliable tenants who will attract visitors, maintain high standards and contribute to the success of the centre. Restaurant operators want fair rental terms, clear agreements and the confidence to invest in building a successful business.

Long-term partnerships often produce the best outcomes. Open communication and mutual trust allow both landlord and tenant to work together when circumstances change, whether that means expanding a successful restaurant, renovating an existing space or responding to changing market conditions.

Operating multiple restaurant brands also creates opportunities during lease negotiations. When a property owner knows they are working with an experienced group that has a proven operating model, discussions often become more productive. Multi-site agreements can create efficiencies for both parties while helping establish a balanced mix of restaurants within a development.

Another opportunity that is sometimes overlooked is the value of second-generation restaurant spaces. These are premises that have previously operated as restaurants and already include many of the expensive features required to open a new location. Existing kitchens, extraction systems, grease traps, cold rooms and service connections can reduce construction costs and shorten the time needed to open the doors.

Reducing upfront costs allows more resources to be invested where customers notice them most. Staff training, service quality, restaurant design and guest experience all benefit when unnecessary construction costs are avoided.

No matter how attractive a location may seem, every lease deserves careful attention. Rental increases, maintenance responsibilities, operating hours, renewal options and exclusivity clauses can all influence the long-term success of a restaurant. A lease should support growth rather than limit it.

The most successful restaurant groups understand that property decisions are business decisions. Every new site represents a long-term commitment, and taking the time to evaluate each opportunity carefully helps reduce risk while creating a stronger foundation for future growth.

At Powers Group, we believe that successful expansion starts with disciplined planning, thoughtful partnerships and selecting locations that will continue to serve both our brands and the communities around them for many years to come.