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Downtown Fayetteville Resources

Opening a Second Location

Why Downtown for Your Second Location?

Section titled “Why Downtown for Your Second Location?”

If your first location is successful downtown, a second downtown location can:

  • Capture different foot traffic patterns
  • Serve different customer segments
  • Reduce wait times at your original location
  • Test new concepts with your brand

Location Considerations

Section titled “Location Considerations”

Downtown Micro-Markets

Section titled “Downtown Micro-Markets”
AreaBest ForCharacter
Hay Street CoreRetail, restaurantsHighest foot traffic
Person StreetProfessional servicesGovernment, office workers
Franklin StreetCreative, artsEmerging, affordable
Cool SpringEntertainmentEvening economy

Key Questions

Section titled “Key Questions”

Before signing a lease:

  1. Will locations compete? Consider distance and customer overlap
  2. Different concept? Same brand, different menu/offering?
  3. Management capacity? Can you oversee both locations?
  4. Supply chain? Can vendors service both locations efficiently?

Permits & Licensing

Section titled “Permits & Licensing”

What Transfers

Section titled “What Transfers”
ItemTransferable?
Business registrationYes (same entity)
EINYes
Sales tax numberYes

What Requires New Application

Section titled “What Requires New Application”
PermitNew Application Required
Building permitYes, for any renovation
Certificate of AppropriatenessYes, if in Historic District
Food service permitYes, per location
ABC permitYes, per location
Sign permitYes, per location

Financial Considerations

Section titled “Financial Considerations”

Typical Costs

Section titled “Typical Costs”
ExpenseRange
Lease deposit2-3 months rent
Build-out$50-$200/sq ft
EquipmentVaries by business type
Inventory30-60 days supply
Working capital3-6 months operating expenses

Funding Options

Section titled “Funding Options”
SourceAmountNotes
Business Assistance LoanUp to $125,000City subordinated loan
SBA 504 LoanUp to $5MReal estate, equipment
Can Do ProgramUp to $750,000Job creation required

Timeline

Section titled “Timeline”
PhaseDuration
Site selection1-3 months
Lease negotiation2-4 weeks
Permits (non-Historic)2-4 weeks
Permits (Historic District)4-8 weeks
Build-out2-6 months
Hiring & training4-8 weeks

Total: 6-12 months from decision to opening

Common Mistakes

Section titled “Common Mistakes”
  1. Underestimating management time - Running two locations is more than twice the work initially
  2. Same staffing model - Different locations may need different approaches
  3. Ignoring cannibalization - Too close and you split your existing customer base
  4. Rushing permits - Historic District especially requires patience

Resources

Section titled “Resources”