In a recent article for Bar & Restaurant News titled “How to scale to your next location,” Roger Lee shares practical insight and guidance for restaurateurs navigating expansion and multi-location growth.
When restaurant groups expand to new locations, they often face complex legal hurdles. Roger points out that the primary difficulties "revolve around real estate landmines, regulatory compliance, and local entanglements." He also mentions that "real estate negotiations often involve a tug-of-war between landlords and tenants regarding permitted use clauses."
Roger emphasizes that engaging an experienced corporate and transactional attorney specializing in the hospitality industry is one of the most effective ways to address these challenges, as they offer "‘big picture’ guidance and direction on corporate structuring, brand protection (IP), and general risk management." Roger notes that these professionals can assist restaurateurs with complex landlord-related real estate issues. This includes conducting comprehensive lease reviews to identify potential problems early, helping tenants draft and negotiate highly specific exclusive-use clauses, and navigating the narrow definitions and regulations that landlords often attempt to impose.
When expanding into new cities and states, he notes that restaurateurs often encounter unfamiliar jurisdictions and additional legal hurdles, including “health department permits, liquor licensing regulations, and local zoning ordinances that vary significantly by city and county.”
In the interview, Roger advocates for a "hub-and-spoke" approach to legal counsel when entering unfamiliar regions and markets. Within this framework, the aforementioned corporate counsel serves as the main organizational hub, overseeing specialists across various sectors. Describing the functionality of this arrangement, Roger says, "Essentially, this means allowing the ‘hub’ attorney to engage with the proper ‘spokes’ attorneys for the new jurisdiction."
