The Most Expensive Mistake Future Restaurant Owners Make
Why Finding a Building Should Rarely Be Your First Decision
By Eric Faber U.S. Restaurant Consultants August 2026
Every year, thousands of people decide to open a restaurant.
Some have dreamed about it for years.
Some have a family recipe they've always wanted to share.
Some are exceptional cooks.
Others simply believe their community needs another restaurant.
Many of them have the passion, determination, and work ethic necessary to succeed.
Yet far too many begin the journey with the wrong first step.
They start looking for a building.
After more than four decades in the restaurant industry, I've watched this happen hundreds of times.
Someone finds a great location.
They become excited.
They worry another tenant will lease it first.
They begin negotiating lease terms.
Only afterward do they begin thinking about the business they intend to build.
Unfortunately, that's often backwards.
The Lease Is Not The Business
Finding a location is exciting.
Walking through an empty restaurant space allows people to imagine the possibilities.
"I can picture the dining room."
"The kitchen will go here."
"This would make a great bar."
The vision becomes real.
The problem is that a lease is a long-term commitment.
A business concept is still just an idea.
Signing a lease before fully developing the business often creates pressure to make every other decision fit the space rather than determining what the business actually needs.
In many cases, operators fall in love with a building before they have fallen in love with a business model.
Restaurants Are Unlike Most Businesses
Opening a restaurant isn't simply opening a business.
It's launching dozens of businesses simultaneously.
You're managing:
- Food production
- Hospitality
- Human resources
- Purchasing
- Inventory
- Technology
- Marketing
- Construction
- Equipment
- Finance
- Customer service
- Daily operations
Every one of those systems must work together.
A great location alone cannot make them work.
The Questions That Should Come First
Before signing a lease, future operators should have thoughtful answers to questions like:
What is the concept?
Who is the target customer?
Why will people choose this restaurant?
How much capital is required?
How long can the business operate before becoming profitable?
What labor model supports the concept?
How will food be produced efficiently?
What equipment is actually required?
What technology will support the operation?
How will the restaurant market itself?
Only after those questions have been explored should the location become the primary focus.
Experience Changes The Conversation
One of the greatest values experienced advisors bring isn't simply knowledge.
It's perspective.
They've seen restaurants succeed.
They've seen restaurants fail.
More importantly, they've often seen why.
Many expensive mistakes can be avoided before construction begins.
Before equipment is purchased.
Before employees are hired.
Before lease obligations begin.
The earlier experienced guidance enters the process, the more options remain available.
Building A Team
One of the biggest misconceptions in the restaurant industry is that asking for help somehow reflects weakness.
In reality, successful entrepreneurs build experienced teams around them.
Attorneys.
Accountants.
Architects.
Kitchen designers.
Contractors.
Restaurant consultants.
Marketing professionals.
Technology providers.
Each contributes expertise the owner may not possess.
Restaurant ownership has never been a one-person profession.
The strongest operators recognize what they know.
They also recognize what they don't.
The Goal Is Not To Slow You Down
Some people hesitate to seek advice because they believe it will delay opening.
In many cases, the opposite is true.
Good planning often prevents expensive redesigns.
Avoids poor lease decisions.
Identifies operational weaknesses early.
Creates realistic financial expectations.
And reduces costly surprises after opening.
Preparation rarely slows progress.
Poor preparation often does.
Looking Ahead
I have tremendous respect for entrepreneurs who choose to enter the restaurant industry.
It remains one of the most rewarding businesses I have ever been part of.
But it is also one of the most demanding.
If I could offer one piece of advice to every future restaurant owner, it would be this:
Don't fall in love with the building.
Fall in love with the business you are trying to create.
The right building should support the business.
The business should never be forced to fit the building.
That single decision may become one of the most important—and most profitable—you ever make.
About Restaurant Startup Reality
Restaurant Startup Reality is an ongoing series by Eric Faber exploring the practical lessons, common mistakes, and real-world decisions that shape successful restaurant startups. Drawing on more than four decades of experience, the series is designed to help future restaurant owners make informed decisions before they invest their time, money, and dreams.