# Occupancy cost

A term used when buying restaurant.

Rent plus its extras as a share of sales, which is the number a lease renewal moves.

Rent plus taxes, insurance and common charges as a share of sales is the ratio that decides whether a restaurant survives a soft year, and the lease is the one term a buyer inherits without the power to change. A number that looks fine today moves the day an option period reprices. Read the lease for the renewal formula and any [percentage rent](https://searchspheresource.com/glossary/percentage-rent), then compute the ratio at today's sales and at a fifteen percent decline.

Part of: Buying a Restaurant (https://searchspheresource.com/guides/buying-a-restaurant)

Source: https://searchspheresource.com/guides/buying-a-restaurant/terms/occupancy-cost
Not dated: The same editorial definitions as the glossary, inside a trade.

Site index for machines: https://searchspheresource.com/llms.txt