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Expensive Site Benefits

Satisfactory Essays

One benefit for renting an expensive site downtown would be that you would get more customers because you are in a busy area where people would see your restaurant more. More customers means more money to pay the rent on the expensive site and more money to pay your staff. One opportunity cost would be that to start out with you would be paying a lot of money because the site is expensive to begin with. One benefit of buying an inexpensive building in a quiet neighborhood would be that to start out with you don't have to spend a lot of money. One opportunity cost would be that because you are in a quiet neighborhood then you will not get as much business than you could have downtown.

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