Property Profile: The Blue Goose Inn
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Examining industries, revenue streams, and brand integrity are all important skills regardless of industry, but commercial real estate demands that these skills are honed to a fine edge. Indeed, deals are built from not just quantitative data but an ongoing working knowledge of hyperlocal markets.
The proverbial devil isn’t just in the details; he’s aware of the perils of weak analysis. Shallow analysis may not destroy every deal, but basing a successful CRE portfolio on hope is a losing proposition.
Embracing Old Dogs, and Old Tricks
When it comes to exploring opportunities, sometimes it is the old dog and old tricks that turn the tide. In a world where everything is designed for push-button entertainment and short-form video, it seems strange to recommend going back to tried and true real estate asset classes.
Here’s the deal: people like to engage with companies that they understand and can enjoy services without a lengthy explanation.
For example, take The Blue Goose Inn. It’s a brand that has stretched to multiple properties, but the core value is easy to understand: it’s a place where people get good food, enjoy drinks, make memories and enjoy a short-term break from home and work.
Ray Oldenburg, a famous sociologist, coined the term third place to describe all of the places that aren’t work or home. Third places are important not just for socializing, but for community vitality in general.
History of the Blue Goose Inn
The Blue Goose Inn as a bar and restaurant concept started in 1910 as a saloon and grocery. After Prohibition came and went, owners John and Ida Green turned it into a bar and restaurant concept. Today, the Blue Goose Inn is one of East Detroit’s fun gathering places for a relaxed social venue and simple, everyday bar food.
Blue Goose Inn for Sale: Easily Purchased Brand Power
Why purchase an existing business over establishing a new one? The most straightforward answer is that purchasing an existing business allows you to reap all of the cumulative benefits of the existing marketing and advertising campaigns.
A bar and restaurant’s reputation is built over time, and the power of brand loyalty is quite high. According to Deloitte, 18 to 24 year olds are the fastest growing segment when it comes to building consumer loyalty, as they are very sensitive to personalization.
The more people are exposed to a brand, the more likely it is that they will continue to patronize the established. Ideally, an existing business’s demographics should be varied in order to capture the spending habits of multiple groups.
The Inner Financials of Bars and Restaurants
It’s easy to get excited about bars and restaurants: they have a veneer of straightforwardness that is hard to pass up. However, the inner financials do require understanding some deeper mechanics and insights.
Here are a few points to consider, especially if you’re looking at something like the Blue Goose Inn for sale:
- Get very familiar with wholesale prices for food and beverage. Not having full understanding of these numbers makes it difficult to understand the margins involved.
- Insurance costs are often overlooked. Liquor liability insurance should be at the top of the list.
- Invest in technology. Bar inventory management software cuts down on deadstock and variance.
- Define clear processes from the start. Buying an established business means blending old processes with new ones, a task not for the faint of heart. Get clear on what you expect from the beginning.
Looking specifically at financials before any deal is closed is basic due diligence, but it can often be overlooked in the excitement of closing on a property. Step back, review the details, and look at both short and long-term objectives for the property.
How will it be run? Who will do the day to day operations? What can be automated or outsourced? These are all good starting questions to keep in mind.
Renovation Review: Giving Old Spaces a Refresh with Minimized Risk
The primary concern with existing businesses is how to put a unique spin on the place without taking away the elements that turned it into a third place concept from the beginning. People are creatures of habit; changing too many elements at once can alienate the existing audience from the venue. Here are a few points about renovations.
Embrace Cost Overruns
According to McKinsey & Company, construction projects typically take 20% longer than anticipated and are over budget roughly 80% of the time. It’s wise to take time to understand how long it will really take to complete the renovations. Is the estimated time truly realistic? Is the budget realistic?
Demand for skilled tradespeople is at an all time high, which means that project estimates may need to be extended past the original deadlines. How will that impact business operations if the project takes longer?
Networking Prevents Waste
Getting the right people for the renovations is better than getting just anyone for the renovations. Far too often renovations are left to the first person that comes up in a Google search. Dig into your network for skilled contractors that can handle the work. Has someone you trust already used their services?
Do they have references you can call? Unfortunately, not everyone is ethical and brings their best to the renovations.
It’s highly likely that someone in your network has already worked with a quality team to pull off renovations. Before you contact any team to start renovation work, it’s best to look into what renovations absolutely have to occur first and then what additional projects would add value.
The Road Ahead for the Blue Goose Brand
Considering projects like The Blue Goose Inn for sale isn’t just about the acquisition: it’s studying the history, financials, and existing audience. Taking the time to conduct a deeper analysis will lead to a higher chance of not just acquiring properties, but putting them to good use.
The more time that is spent studying the value of an acquisition, the better. Again, sharpening these skills is something that will take time, but it truly is an investment into expanding commercial real estate opportunities for the long run.
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