What Do I Need to Know to Open A Restaurant Inside a Department Store?

Aug 22, 2021
Department stores or commercial centers are target locations for many people in opening restaurants, even though people know that opening restaurants inside department stores incur higher expenses than opening restaurants outside. People want to open restaurants inside department stores have strengths in regards to traffic, magnetism and the ability to attract people's attention. Moreover, department stores offer all sorts of conveniences, particuarly parking spaces. We can divide department stores in this country into three main categories as follows:

1. Department stores or large malls.
2. Hypermarkets or malls focused on selling retail consumer products.
3. Community malls or centers focused on selling outdoors without air conditioning.

Each category targets a different customer group, so you should conduct a study on customer behaviors for each type of restaurant that you might want to open. In any case, all three categories have fairly similar conditions and rules for opening, and we have summarized them into simple steps that you can understand as follows:

15 Steps for Opening a Store Inside a Department Store

1. Presenting a Profile to the Department Store for Consideration
The department store has the right to accept or reject us, so profile-writing is very important. Make your explanations concise and easy to understand, and present your strong points so the department store can see more of your potential than simply paying rent.

2. After Receiving a Price Quotation from the Department Store
After the renter receives a price quotation from the department store, the renter will have to deliver a statement of intention to reserve the rental space. The details about the rented space will be available for you to understand before you reserve the space and pay a deposit. Most of the time, deposits are divided into two installments. Accordingly, two copies of the rental contract will have to be printed: one for the renter and one for the department store.

3. After Paying Installment 1 of the Deposit
Once the rental contract is signed, and the check for the first installment of the rental deposit is ready, the renter will deliver both contract copies and the check to the department store for signing and authorization of the space rent and receive a receipt for the first installment of the deposit.
4. Acceptance of Requirements
After you accept the receipt for the deposit, the department store will send you the requirements for the utility systems that we will need to use such as pipe sizes for water supply and drainage and specifications for power supply and air conditioning, etc.

5. Acceptance of Files for the Rented Space and Utility Systems
The department store will deliver files containing information about the rented space and utility systems to the renter as CAD and PDF files along with other specifications and conditions for decorations for the renter to pass on to the decorations and system designer to prepare construction plans.

At this point, the renter will be looking for a designer to assess the cost for drafting designs. Once a designer is recruited, an appointment will be made for the designer and person in charge of the rented space to visit the actual rented space and compare the actual space information with the designs sent by the department store for accuracy. Then the process will proceed to layout and perspective picture designs.

It's also a good time to create the restaurant's brand.

6. Presenting Perspective Pictures to the Department Store for Approval
After the desired perspective pictures are obtained, the renter will send them to the department store for consideration of approval for additional construction planning. This step is when construction designs are drawn.

7. Sending Designs to the Department Store for Approval
After the desired construction designs are obtained, the renter will deliver them to the department store for consideration of approval for the commencement of construction.

8. Contractor Recruitment
Once the department store authorizes the construction plans, recruit a contractor to immediately begin construction.

9. Coordinating Work with the Department Store for Acceptance of the Rented Space
Once the contractor completes construction in full (or partially), schedule a meeting with the department store to seek acceptance of the rented space. You will have to sign some confirmation documents for acceptance of the rented space, and then you will pay the second installment of the rent deposit and ask for details about construction regulations such as working hours, water usage, electricity usage, transportation and others.

11. Coordinating Other Work Issues
During construction, you will have to coordinate regularly with the department store on other issues such as the following:
  • Requesting registration documents and Por. Por. 20 (the legal department will inform you about what you'll need).
  • Public relations at the rented facility.
  • Coordinating and solving problems at the work site.

12. Requesting Storefront Partition Removal
Once construction is completed, you will have to prepare a document to request for the removal of the partition of the storefront to prepare for launch. The department store will send a creditor to inspect all decorations and utility work inside the restaurant to determine whether or not they follow the designs submitted before construction and whether or not they comply with the terms for decorations.

13. Wait for Your Partition Removal Request Result Announcement
If no mistakes or faults are found or if they involve only minor corrections that the property-owner can allow, the owner will authorize the removal of the partition to subsequent commencement of sales.
Once the partition is removed, sales must commence within one day after the date of removal.

14. Applying Corrections to Areas Notified by the Department Store
After the launching of the restaurant, if the staff informs you that corrections are needed, you need to quickly apply the corrections within a scheduled time period. Once you have applied your corrections, notify the staff for an additional inspection.

15. Requesting the Return of the Construction Deposit
Once all construction, decoration and utility system work is complete, the renter can sent a letter requesting for the return of the construction deposit. The department store will then return the deposit in the form of a cashier's check on a scheduled date.

 These are the 15 main steps that most department stores will operate by, but other steps might also be involved depending on the specific conditions of each department store. Importantly, if work completes later than as scheduled due to bad planning, what will follow is an exponential increase in expenses! 

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