Navigating the Challenges of Opening a Business in Miami: Insights from Hospitability Expert, Felix Bendersky.
Opening a business in Miami can be a dream for many, but the reality often proves more challenging than anticipated. In a recent interview, Leo Jacobs sat down with Felix Bendersky, a prominent figure in hospitality brokerage and the owner of F+B Hospitality Leasing Brokerage, to discuss the challenges faced by entrepreneurs, especially those aiming to open restaurants and bars in the area.
Here’s a closer look at the critical takeaways from the session:
Felix pointed out the number one issue plaguing businesses in Miami-Dade County: the notoriously slow and inefficient permitting system. This, he explained, can delay business openings, leaving entrepreneurs stuck with mounting expenses before even serving their first customer.
The Financial Burden of Permitting Delays
The permitting delays are just one part of the larger problem facing business owners in the hospitality sector. As Felix explained, many restaurateurs and bar owners, after investing significant amounts of money and energy, find themselves unable to open due to the lengthy permitting process. Entrepreneurs often take out loans, use personal savings, or borrow money from friends and family to fund their ventures. But when delays hit, the financial burden grows heavier, and the dream of opening a successful establishment starts to feel out of reach. "We have restaurants that have spent $1.8 million and never opened," Felix revealed.
The Importance of a Knowledgeable Broker
Felix emphasized the importance of education, advising potential clients about the challenges they will face when opening in Florida. He highlighted the significance of working with professionals who understand the financial and legal terrain. This is where the expertise of lawyers like Leo Jacobs comes in. Jacobs’ firm specializes in helping clients navigate financial turmoil, advising on everything from leases to bankruptcy protection.
The key, Leo Jacobs noted, is to educate clients upfront about the potential pitfalls, so they are better prepared to face the realities of opening a business in a competitive market like Miami.
Mitigating Risks in Miami's Hospitality Industry
The discussion then shifted to how business owners can mitigate the risks associated with running a restaurant or bar in Miami. Both Felix and Jacobs strongly agreed that success is not just about a great concept; it's about understanding the numbers and having the right team in place.
"A good running restaurant in Miami is typically running on a 20 to 22 percent profit margin," Felix asserted, underscoring the importance of financial foresight. When an entrepreneur’s margins are slimmer, as is often the case, they may find themselves in a difficult position, particularly when unexpected expenses arise. In response, Jacobs advised clients to carefully assess their leases, particularly the terms surrounding personal guarantees, and to consider strategies like bankruptcy or restructuring when the financial situation becomes untenable.
Conclusion - One Needs Expert Support
Despite the challenges, both Felix and Leo believe that with the right support and advice, entrepreneurs can navigate the tumultuous waters of Miami’s hospitality scene. Both experts emphasize the importance of counseling over mere advocacy. While Jacobs' firm offers strong legal advocacy, it is his approach as a counselor that truly sets him apart.
By providing clients with a realistic understanding of their options and guiding them toward informed decisions, Jacobs ensures they are well-equipped to make it through the most difficult situations. In a fast-paced, high-risk environment like Miami, having a trusted advisor in your corner is invaluable, and with the support of professionals like Felix Bendersky and Leo Jacobs, the path to success may become just a little bit clearer.
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Leo Jacobs, Founder and CEO
Known for finding creative, expedient solutions to complex and high-profile cases, Leo excels in matters including distressed investment and asset management, real estate law, corporate law, dispute resolution, business divorces, negotiation, and more. Leo’s extensive expertise in debt and equity structures enables him to employ a full spectrum of legal tools to achieve swift, optimal results for clients. His practice, Jacobs P.C., bridges commercial litigation, corporate transactions, and financial rehabilitation, handling cases across federal, state, and bankruptcy courts, as well as administrative tribunals.
