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I'm Keith Simpson and I'm a restaurant expert.
I've been a chef, a caterer, a successful restaurant owner,
and now I'm one
of the top restaurant brokers in the country.
You could have all your juice, the juicer,
the serving, everything here.
After 30 years of running restaurants,
now my passion is helping other people find theirs.
Here we are -- the nerve center, the kitchen.
I've closed millions of dollars in restaurant deals,
and I absolutely love it.
First-time buyers, they're the toughest.
Nope.
SIMPSON: But there's nothing I'd rather do.
We've got to do undercover 'cause this is
a highly, highly confidential listing.
Today, I'm in Berkeley, California,
helping Mark and Ramonn realize their dream
of owning a laid-back lounge without breaking the bank.
Small is often good
Good point.
I'm showing them three spaces,
but only one will hit the mark.
If you're ready to buy a restaurant, I'm your man.
-- Captions by VITAC --
Closed Captions provided by Scripps Networks, LLC.
I've come to Berkeley, California,
to help first-time buyers Mark and Ramonn.
We're actually yin and yang.
I'm a little more, you know, laid-back.
He's a little more -- he's gonna get nervous,
and I say, "Mark, calm down. I got you."
MARK: Ramonn and I met
in the family-owned restaurant that I manage.
He was a regular customer, and I started going
to different events and seeing him there.
And he just had a positive vibe about him,
you know, always relaxed.
SIMPSON: Mark and Ramonn have been friends for a long time
and are now going into business together.
One day, we started talking,
he talked about, "I want to own a restaurant."
And I was thinking, "Wow, that's interesting.
"You know, that's my vision, also.
He'd be a cool guy to go in business with."
It's been a dream of mine since I was 27, 28.
I said, "By the time I turn 40,
I want to own my own restaurant," and I'm 40.
SIMPSON: Ramonn has a passion for the front of house...
You want to bring the crowd.
...while Mark has been managing restaurants for years.
I'm comfortable running the back of the house as well as the front of the house.
I've managed restaurants successfully.
I think it's time now to venture out
and manage a restaurant that's my own.
Mark and Ramonn have a great concept
in an upscale restaurant lounge.
We searched for a place to chill in the Bay Area.
We couldn't find it.
There's a niche to be filled.
Why don't we fill it our way?
It's basically nothing real extreme --
burgers, some sliders, salads.
They could use it as bar food, but they could also use it as a meal.
Our focus is gonna be on that working-class adult
that likes to relax with good atmosphere
and good fêng shui.
Fêng shui?
Fêng shui.
[ Both chuckle ]
Mark and Ramonn are going in 50/50 each
to open this restaurant, using up all of their savings.
Our budget is $250,000. I'm nervous.
I had to take money out of a 401(k)
and money I saved for years.
Mark is quitting his current job
as a General Manager at a restaurant
to focus exclusively on their new restaurant and lounge.
I'm leaving a pretty secure job.
I got two boys -- 6 and 15.
They look to Daddy to lead by example,
and I've always encouraged my kids to follow their dreams.
And they'll understand that they can do anything they want to do,
you know, 'cause Daddy did it.
The most important step to success
is finding the right location for their concept.
This first restaurant is a Greek restaurant
right in the heart of Berkeley, a fabulous location for them.
Berkeley is just across the Bay from San Francisco
and offers a vibrant culture and rich culinary scene.
The purchase price is $150,000.
That includes the business and all the assets,
which are the fixtures, fittings, and equipment.
I suggest they purchase the business and incorporate
some of the menu items into their own concept.
How are you doing?
You have a nice walk around the area?
How you doing?
I love the location here.
Love the location.
You're only 100 or so yards away from the university,
and all around here is offices.
So, people can come in after work, a bite to eat, a drink.
And you've just got a great location on the main drag.
The asking price is $150,000, and the rent is $4,200 a month.
Let's go take a look inside.
Great.
RAMONN: A little small, Keith.
Small is often good.
It's 1,800 square feet.
For first-time buyers, it's nice because it's less wasteful,
it's more controllable.
I'd rather go and fill a small space
than have the same people in a big space.
Good point.
Well, I see this area right here when you walk in
as being the lounge area.
Oh, yeah.
SIMPSON: I love old brick.
I think you're gonna get three nice booths here.
So, you get one over here, one of the back,
and one on the side there.
MARK: Maybe darken those windows up a little bit,
introduce some velvet to the situation.
Yeah, absolutely, and maybe even a nice carpeted feel --
feels like your living room.
Keep it small though.
I'm curious to know where you think the bar's gonna be.
This is where I see your bar
because there are two kitchens here.
This is, like, the show kitchen, cooking,
but we're gonna pick it up and we're gonna move it
about 40 feet to the back kitchen.
And then, behind here is all that exposed brick.
MARK: Yeah, it's character, especially in Berkeley.
We're gonna build about a 15-foot bar right here.
Through here, we've got more dining.
Yes. So, how many more seats do you think we can get in here?
Here there's another 18 to 20.
It was kind of small for me.
MARK: Yeah, it's cozy. It was a cozy space.
Now we have the kitchen
because we are gonna pick up everything that you saw
in the center of the restaurant area
and move it into here.
It's about 300 square foot back here.
That's enough.
I also want to show Mark and Ramonn the upstairs loft.
It's a perfect VIP area.
So, gentlemen, what do you have here?
I like this a lot.
I like the smile on your face. You like this.
Well, you got the skylight. I mean, it's nice.
This is a nice little added bonus.
Good. I want to show you my plan.
Are you ready to see what you can really make of this place?
All right. Let's check it out.
SIMPSON: This Greek restaurant may be small,
but it's big on charm.
To create a relaxed lounge area,
we'll clear out the space and install a lush carpet
and three dark-red, leather booths.
A pop of color on the wall will add warmth and sophistication.
We'll clear out the show kitchen,
exposing the rest of the brick
and making room for a dark-wood bar
and new high bar tables.
The pony wall behind the bar will go,
opening up the space for a 20-seater dining room.
Upstairs. Look at that.
SIMPSON: The VIP lounge is getting the VIP treatment,
with grey leather booths, coral-colored carpet,
and of course, ambient lighting to set the mood.
MARK: It's nice.
You did a great job. I'm pretty impressed.
The renovation costs here are around $50,000.
SIMPSON: And with another $150,000 for the business,
that leaves Mark and Ramonn with $50,000
for start-up costs, rent, and working capital,
and I estimate a return on investment
of between 18 and 24 months.
This is gonna be tough for us to make work, but it is doable.
Next, an amazing kitchen
that inspires Mark to get behind the grill.
I could make my bacon cheeseburger right here
and watch somebody eat it out there.
SIMPSON: Today, I'm working with Mark and his buddy Ramonn.
They're first-time buyers
looking for a cool Bay Area space
for their upscale restaurant-and-lounge concept.
Love the location.
SIMPSON: The first location I took them to,
a Greek restaurant in Berkeley.
It has a lack of square footage
but a bonus loft area to make up for it.
Well, you got the skylight. I mean, it's nice.
I've got two more restaurants to show them.
The next one's also in Berkeley, just down the road.
The laid-back lifestyle in this area
should support Mark and Ramonn's lounge concept.
This restaurant is a 2,600-square-foot
comfort-food restaurant.
The purchase price is $130,000.
That includes the business,
all the equipment, and the liquor license.
So, this used to be an old bank.
It's been a restaurant for some time,
but it's got that lovely character, the corner location.
Okay.
And here, you're on a major, major highway here.
Yeah.
Down here, you've got a major drag -- shopping district.
All around, people can't miss this location.
So, are you excited to see inside?
Let's go and have a look.
Let's do this one.
How's that look?
I like it. I like it.
Now, this is a space.
SIMPSON: Beautiful high ceiling.
RAMONN: It's nice.
It's great until you need to heat the room, huh?
[ Laughter ]
Not sure about the green color.
That's a cold color to me.
Greens and blues are cold, but I'm gonna show you
how we're gonna change some of that.
Very nice.
And the asking price here is $130,000.
That's the asking price.
You've got 2,600 square feet, and the rent here is $5,500.
Look at these windows -- fabulous.
Yeah.
Almost too much light,
but I -- I like it though, but it's a lot of light.
I've got ideas to change that later.
Okay. It's a little loud in here, Keith.
It is loud in here, and this we might even carpet
to bring down that noise.
I see very as this being your lounge area,
so here can be your booths, more booths on this side.
We'll get rid of these tables.
Over there, that's the dining area.
Interesting.
These big pillars, this green's horrible.
No.
Then, I guess we'll have to keep them.
And they're absolutely solid. I love it.
And then, look at the bar -- enormous.
20 seats.
20 seats. It's a good, solid bar.
I love that.
The cove.
Coving like that, it's more expensive
than just squaring it off, so they've spent some money.
And you're buying that.
And look at the strength of these chairs.
These are gonna last you 20 years.
Nice.
I tell you, that is $150-dollar stool.
All comes with.
Everything you see in here comes with the price.
Then, through here, the kitchen.
Come and have a look at this.
I've never seen a kitchen as nice as this for this price.
Everything is stainless steel.
We've got tile floor.
There is zero money to be spent in this kitchen.
I like that number.
You like that number?
I love that number.
You've got all these six-burners, flat-top.
Everything works.
And look at those flames.
They're not dirty, they're well maintained, and that's good.
Now look at your restaurant from the back of house.
I could make my bacon cheeseburger right here,
deliver it here, and watch somebody eat it out there.
And then, a potato. That comes with the deal.
[ Chuckles ] French fries.
So, here is your appetizers all going out here.
Right.
Or a chef's table.
A chef's table is fun for customers
because they feel like they're part of the kitchen.
SIMPSON: Wooden block.
You can give a steak. You can make it happen on this.
Right. And everyone's watching you.
You're saying you're gonna start cooking?
Now we're talking. I like it.
It's a little bigger than I think I was envisioning.
So, do you want to see a plan to improve the restaurant?
Yes.
SIMPSON: This historic building has the bones
to be the sophisticated lounge Mark and Ramonn envision.
We'll start by installing a host station at the front door
to help divide the massive space.
To the left of the host station will be the lounge zone,
and we'll clear out those tables and chairs.
To soften the atmosphere,
we'll paint the walls a warm burgundy
and roll in a new carpet, and those large pillars
are getting a classy faux-marble treatment.
Two more booths will fill the space, with one facing the bar.
To give customers more breathing room,
we'll push the bar counter back another 18 inches.
Over at the chef's table,
we'll throw in premium seating for four more guests.
The dining area to the right of the host station
will be built up on a platform to separate it.
A beautiful, dark hardwood floor,
new tables and chairs, and elegant lighting
will give this dining room added sophistication,
and finally, rich velvet curtains
will quiet the acoustics
and add even more warmth and intimacy.
Just to finish that off.
Real nice. Real nice.
This is gonna cost you around $80,000.
SIMPSON: With the $130,000 purchase price,
that give Mark and Ramonn $40,000
for start-up costs, rent, and working capital,
leaving 12 to 18 months to see their investment back.
MARK: It definitely fits our concept.
It's not ready to go right now, but it's close.
Well, I've got one more to show you,
and it's a little bit of a surprise.
You ready for the surprise?
[ Chuckles ]
Come and look at Keith's surprise.
Oh, I hate surprises.
SIMPSON: Come on, guys.
Our final stop takes us into the city,
where the rent is high but so are the sales.
The bar does $1 million?
SIMPSON: Good friends Mark and Ramonn are living the dream
by opening up a trendy restaurant and lounge
in the Bay Area.
They're taking a big chance,
with all of their savings on the line,
and success hinges on finding the right restaurant space.
So far, I've showed Mark and Ramonn two viable options --
a Greek restaurant with a killer loft area...
You like this?
SIMPSON: ...and a comfort-food restaurant with the right vibe.
Now, this is a space.
This last restaurant I'm going to show them
is in San Francisco.
It's in a charming neighborhood called Potrero Hill,
a quiet, family-friendly section of the city.
It's a bit of a commute for Mark and Ramonn,
coming from Berkeley,
but this opportunity would be worth the drive.
I brought you here to Rocket Fish.
It's a sushi restaurant now.
Here you've got restaurants on every corner,
and look at that view.
MARK: It's incredible.
I wanted to bring you to show you
what you can actually obtain in the city
'cause this area is very, very upscale.
You've got 9,000 people living per square mile in this area
with a median income of over $100,000 a year.
That mean they've got tremendous disposable income,
Hmm.
The purchase price here is $160,000,
but you only get the assets and the liquor license.
The name Rocket Fish doesn't come with it, nor does the menu.
Okay.
You've got 2,200 square feet.
The rent is $10,000 a month.
Ooh. How much?
$10,000 a month.
That's a high rent, but that's what you pay in the city.
So, let's go have a look inside
'cause I want to show you why it's that price.
RAMONN: Hmm.
Welcome to Rocket Fish.
I think we'd probably keep the booths.
They look really nice.
Well, come and sit down.
Come and see what the feel is with the booths.
You got some nice lounge-type atmosphere going already.
This is your table, isn't it? You've already booked it for the night.
As an owner, I won't be sitting down very much, and I get that.
That's a good, good answer.
This is a hot spot. I can tell this place does well.
And you'll keep the fish, won't you?
Well, we will negotiate the fish.
I love this wood. Would you keep that?
Oh, absolutely, yeah.
It's like a whole slice of a tree.
SIMPSON: And this bar does $1 million a year just in bar sales.
The bar does $1 million?
Exactly. Just the bar, without the food.
Wow. That's impressive.
That San Francisco.
I think we need to sample some of the liquor
to make sure it's good.
[ Chuckles ]
I'm gonna own this place.
This is only half of it.
There's a whole nother room next door.
Here you've got a complete restaurant-dining-area space
separate from the lounge.
Oh, this is beautiful. I like it, Keith. Very nice.
The sushi bar doesn't play into our concept, obviously.
SIMPSON: My idea is to get rid of the sushi bar,
and we'll do that by blowing this wall out
'cause you've got about 40 seats here now
but I think we can make 60.
Good.
Well, come and see through here.
This is the wash-up area.
The kitchen is quite broken up and segmented.
Here is your main kitchen.
You've got fryers, you've got cookers,
you've got charbroilers, and all this is included --
all your food.
These bowls, you could use these, couldn't you?
Yeah?
We'll make something out of that.
Yeah. Plenty of room.
SO, guys, let me show you the plan I have.
I think you're gonna like this.
SIMPSON: With just simple design tweaks,
this sushi restaurant could be
exactly what Mark and Ramonn are looking for.
First, for the lounge area, the decor
and high bar tables and chairs will be cleared out
and replaced with one dark-wood community table
in the center of the room.
Then, we'll update the banquette seating
with plush fabric to add some swank.
The bar back will get an upgrade,
with several large, framed mirrors that add some style.
An orange-and-black color palette, soft lighting,
and abstract artwork will top off the lounge.
Over in the dining room,
we'll blow out the sushi bar and the wall beside it,
adding another six tables.
The room will get a simple cosmetic cleanup, fresh paint,
and chic decor to tie it into the lounge next door.
I like it. I really like it.
Now, this renovation's gonna cost you an additional $50,000.
SIMPSON: With $160,000 purchase price,
that leaves Mark and Ramonn $40,000
for start-up costs, rent, and working capital,
and I predict they see a return on their investment
in 6 to 12 months.
The monthly might be a little tough,
but I think with the neighborhood
and that bar doing $1 million, that's very attractive to me.
Well, we've seen the three locations.
They're all really good.
If you wait too long, locations like this
and the ones we saw earlier, they're gonna go.
Yeah, well, we need to talk about money,
Good.
Anything you need to ask me, please give me a call.
Otherwise, we're gonna meet tomorrow.
We got three great options,
and I think that we'll make the correct decision.
Mark and Ramonn have had a lot to think about overnight.
I'm looking forward to meeting them today
to see which restaurant they've decided on,
Two in Berkeley, one in the city of San Francisco,
all of them would fit their concept.
Mark and Ramonn's $250,000 budget
represents all of their hard work over the years,
and they've got to make the right decision.
Well, let's recap all three...
...before you make a decision.
Let's start with the Greek restaurant.
SIMPSON: This eclectic space has character
and an amazing loft, but it's small size
may be too cozy for an upscale lounge.
I like the -- moving the kitchen back
Right.
...but I think the effort to put into a Greek place
to make it into our concept seemed to be a lot.
Let's go to number two.
Now here we've got the comfort-food restaurant.
SIMPSON: This wide-open space has a great bar and kitchen,
but it would take some work
creating a more intimate atmosphere.
You got the three different sections -- great.
Makes so much room.
And the kitchen's ready to go. Kitchen's ready.
Kitchen is done.
Now, this renovation cost, it's gonna cost you $80,000.
I know.
You know, that gets you right up there.
Now the last restaurant.
SIMPSON: You can beat this sushi place's San Francisco location,
but its high rent could be a lot
for first-time buyers to take on.
We have a bar that's doing $1 million.
But look at the other side of it -- the commute.
Yeah.
Tell me what you think.
I know.
...we're trying to make the right decision.
I think we both -- off the bat,
I think we can eliminate the Greek place.
Okay, yeah. I agree. I agree with that.
It's just too small, Keith.
It's just too small. That's all.
Okay. The Greek restaurant, gone.
Now you've got the two.
I'm leaning towards San Francisco.
You're leaning San Francisco.
And I'm leaning towards Berkeley.
The opportunity to buy a million-dollar business
In the city.
...in the city is really, really, really attractive to me.
Hour...
...15 minutes.
Your boys -- you have little boys.
They need their dad.
Now he's pulling my heartstrings.
They need their daddy.
He's pulling my heartstrings. [ Chuckles ]
I've made a decision.
Hold on. What?
I'm going with you to Berkeley.
There you go. That's the way you roll.
Fantastic. Cheers, guys.
The next door it is. Well done.
I live local. I'm gonna come down and see you.
Beautiful. Bring your credit card.
Bring my credit card? Of course.
[ Laughter ]
SIMPSON: Mark and Ramonn ended up getting the restaurant
well under asking price for only $69,000,
leaving them roughly $180,000
for start-up costs, rent, and working capital.
This location ended up playing directly into our vision.
It was like a blank slate.
We took a lot of Keith's suggestions.
We carpeted the entire place.
We also put in curtains -- softened the sound a lot.
We livened it up a little bit with the colors and couches,
and we kind of sectioned everything off --
the dining, lounge, the bar.
We named it 44 Restaurant and Bar.
Feels great to finally own something --
what I've been dreaming for for 13 years.
The concept has been well received,
and packed house every day.
Cash register is absolutely working.
We made it happen.
Feels great. Feels great.
SIMPSON: For more about 44 Restaurant and Bar,
go to foodnetwork.com/ buythisrestaurant.