Supporting a London Restaurant Group’s West Coast Expansion

Situation

A prominent, award‑winning London‑based restaurant group retained the firm to advise on its expansion into the U.S. market, beginning with a flagship West Coast location. Although the group operates multiple celebrated brands abroad, the client was not convinced that its first two U.S. leases had been carefully negotiated, and the client wanted to ensure that this next lease was approached with the level of diligence and protection appropriate for a tenant of its caliber.

The client identified a promising site, but one that required extensive work and a substantial capital investment. Their broker was deeply involved, advocating for terms that reflected the prestige of the brand and the realities of the U.S. restaurant market. By the time the firm was engaged, the parties had already executed a detailed letter of intent.

Approach

Drawing on extensive experience representing restaurant operators in sophisticated lease transactions, the firm delivered an initial markup that incorporated a comprehensive set of tenant protections it views as essential for operators entering high‑profile, high‑investment spaces.

The landlord resisted many of these protections, resulting in a lengthy negotiation period. Working closely with the client’s broker, and involving local counsel as necessary, the firm developed creative solutions to a range of nuanced issues, including:

• Exposure to real estate tax reassessments following a major renovation.
• Structural upgrade obligations triggered by future changes in law.
• Balancing the tenant’s desire for design flexibility with the landlord’s cost‑share concerns.
• Preserving tenant flexibility around operations, while addressing the landlord’s concerns about potential disruption to the building’s office tenants.

Throughout the process, the firm collaborated closely with the client’s broker, involving the client strategically for issues requiring its input. The firm also took care to educate the client on U.S. leasing norms, by highlighting risks, expectations, and the key differences from the UK market.

Result

Through persistence, strategic negotiation, and creative problem‑solving, the firm successfully secured the protections the tenant needed to move forward. Satisfactory solutions were reached on all material issues, and the lease was executed.

The client was extremely pleased with the outcome, which positioned its U.S. expansion for success.