Hello,
As far as budget goes it's difficult to say, depends on where you starting from, starting from scratch, you'll need A5/A3 planning depending on the size of the property, installation of the kitchen will be expensive and you must not cut corners, fridges, prep room etc will quickly add up. The biggest expense is the range, the high efficiency ones are an absolute must, I was involved with two restaurants one had a modern high ef range and one an old fashioned one - similar sized properties and nearly £200 a week difference in gas costs - £10k a year. You're look at about £20k bottom line and to be able to do the kind of volumes that will pay for a shared venture you'll probably be looking £30k.
You'll be the thick side of £100k starting from scratch - I've known people spend £150k+ fitting out new, small takeaways. Starting with the structure already there you'll save some money. You can look at HP, credit options to limit your initial exposure
1. Employ a manager and staff with enough incentive so they don’t peel from the takings.
This is the big issue, and I've been/done it, it's close to impossible, you might find someone who is just a naturally good person and would never steal, but the bottom line is Managed independent F&C takeaways just don't work. £400-£450 a week for a good manager (no promises they don't steal even on decent money) and you just don't have the margin for it. Not many small takeaways are doing more than £6-7k p/week gross and most on this kinda scale £4-5k. The average gross margins are ~60% (used to be that it was always a high GP business but the increase in price and volatility in fish & potato prices make it impossible now) - with no rent to pay you give yourself a chance but in reality you just don't really have the room to pay yourself after a manager. I know very successful Mom+Pop F&C operations and they make the money by grafting themselves, up at 8 to cut and prep the fish, always there so staff don't steal, keep a very very tight grip on everything, make £600 a week and another £300 nicked form the till, that's the reality of most small takeaways, good money (£50k a year) but some decent graft.
Your idea with the property is a good one and I attempted to do something similar myself a couple of years back;
By the property and find an enthusiastic Fryer to run the business, give him a big share of the business and mentor him, if the business is successful then it pays rent every week, which is how you get your money, eventually you either sell the business (and get paid) or the manager buys you out - as long as the business is successful enough to pay its rent you win.
Established F&C owners might be interested on a deal where you buy the property and take a % of the business, like I say the reality of the industry is the margins just not there for shared ownership schemes/managed concerns, I've got friends who have managed businesses take £12-15k a week gross and even the they are struggling to make it pay really, for the financial risks they take almost certainly not worth it. Once you go over £145k p/yr turnover and cant enjoy the fixed rate VAT anymore (12%, with hardly any gross goods being VATable it's a god-send) then a whole host of issues and risks crop up.
If you own the property and all the equipment your risks are somewhat mitigated but it's defo not a shot to nothing as you'll never get the money you put into the building back, not to mention the operating losses you will have incurred.
It's a real tough business though, and if you're inexperienced and not completely "on-it" then you can get found out really quickly, I made lots of mistakes like this. Need top quality products and good staff, fish fryers are a high value commodity these days, £10-12p/hr the going rate for a good, experienced fryer at the moment, they know as well if they go to the coast for the summer they'll get 60hour weeks on £14-18 per hour, I know a guy who runs a restaurant in Whitby and last year he was paying his head fryer more than his head chef who's worked at michelin star level. The volatility of your gross costs as well is mental - it's not a million miles from bitcoin, when I was running a restaurant last the cost of fish went from £120 a box to £90 to £125 and potatoes from £5 a sack to £12...unless you got the money to buy in advance you're totally at the mercy of the elements and I've know it bankrupt small operators.
Having said all this doom and gloom though, get it right and it's a wonderfully simple cash healthy business, simple range of products, decent margins, no credit risks and you can run it really tight.
My bottom line advice would be, you need the people, money is easy enough, if you had a great guy to do this with and enough capital to start and lose some cash in the beginning you got a good shot, if you don't have the right person/people or go in half cocked financially then you'll be a big favourite to fail.
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