Changeover shutdown

Definition

The days a kitchen stays shut because the seller's food license did not survive the sale.

Why It Matters

Occupancy cost is rent as a share of sales, and its own point is that the lease is the term a buyer inherits without the power to change it. This is the thing attached to the premises that the buyer does not inherit. Rent accrues from the day you own it and sales do not start until the regulator says so, which makes a changeover the stretch where occupancy cost has no denominator. Florida says a public food service license may not be transferred from one place or individual to another, and the buyer must hold one before it opens. Ohio allows the transfer on a sale, but only if the seller consents and only once in a March-to-February licensing period. Establish which regime the site sits in before setting a closing date, and fund the payroll of the crew you are trying not to lose.