I found this restaurant on Google Map. The store has been around for years absolutely unbeknownst to me. The place was perfect. The food was fantastic. I cannot believe there could be such a wonderful restaurant around my neighborhood.
This proved to me once again that a great restaurant need no good location. People are willing to drive a long way to enjoy it. It is an exceptional characteristic of the food business.
Generally speaking, location is one of the most important factors in any retail business. The best locations are most likely located in the heart of the city. In such a place, one cannot afford to own, because it is going to be a huge investment. In fact, most of the best locations are not for sale. You have to rent them at a whopping price. That’s why many retail businesses do not succeed. They hardly make both ends meet.
For restaurants, things are different. As long as the food is great and the overall service is not too bad. You don’t need prime location. You can go suburb. You could even own the location, because they are not that expensive, either. This way you do not only earn profit from your food business but also enjoy the gradual price appreciation of the property simultaneously. The success rate of your business increases significantly.
Speaking of the retail property, Bangkok has too many old-fashioned commercial buildings. They make the city look ugly. Worse yet, the value of these buildings is declining due to traffic problem and the lack of parking spaces around Bangkok. It can be very risky to purchase these building. In fact, they are being replaced by condominiums which I am whole-heartedly endorsing this trend, because they make the city look better.
So if you want to start a retail business in Bangkok, I suggest you rent spaces in the shopping malls. Don’t buy or rent old-fashioned commercial buildings. If you really want to own the retail property, buy new projects or even go suburbs and purchase a piece of land and build a custom store on your own. In the latter case, retail food businesses are among the best choices.
For residential property, things do not look brighter. Thai people do not like to buy second-hand due to superstitious reasons. Also, Thailand does not have tax-incentives to buy second-hand houses unlike in the US or in many countries. So, the demand of this market is not that big. You can flip the condos because of high demands in some urban areas but it’s quite risky. In addition, there are not high demands either if you decide to invest in a condo and rent it out. People who can afford to pay for the rent are also able to buy for themselves. The market of condo rentals is in the very high-end and the very low-end, but they both required a very high investment upfront.
That’s why I am not very keen about property investment in Bangkok. I find investments the stock markets are much more attractive.