Converting office into limited service catering hall?

[Robert Plumpe]

Hey all:

I am in the nearby suburbs of Detroit.

A few years ago I noticed a limited service catering hall in a nearby strip mall.  By limited service, they did not have a kitchen and the size of the hall was just one room and was maybe 1,200 sq. ft.  The business owner would set up, people who rented would help in the tear down and clean up.

I initially thought that this business was a TERRIBLE idea...no demand, no money to be made....to down market.

Well, I have to admit,  I could not have been more wrong!

What changed my mind was that my father attended a function in it one day.  He knew the person who rented the hall and how much they paid.  I thought the cost was about $150 or $200.  NOPE, not even close.  It was $700 for 6 hours!

So I started to pay attention.  This place was almost always rented on the weekends (SAT. SUN)  A couple of times a month, something wold be going on Friday.  They also rented the place out from time to time during the week (retirement party?  birthday party?).   The big thing seemed to be baby showers.

The hall eventually closed, the owner moved to a larger location, a bit further out...and a boutique rented the spot.

So I think that the limited service catering hall is a tremendous business.  I would like to convert an office building to enable this.

Of course, you've got to have several factors to make it work.  You've got to have enough space, bathrooms, AND PLENTY OF PARKING!  Obviously you've got to be zoned appropriately, and there are other smaller factors too.

So my plan is to convert the building, rent it to a caterer for a somewhat smaller monthly rent, but get a percentage of bookings.

Anybody have any experience or thoughts on this?