The effect of commercial real estate prices on independent food businesses in Helsinki Business District

Abstract

This research studies location factor and commercial real estate market effect on food businesses in Helsinki Business District. The high mortality rate in restaurant industry is alarming when the yearly amount of new entrants stays roughly the same. Helsinki centre commercial real estate prices and its additional costs are relatively high for a saturated industry which operates on low margins. This study looks at the severity of the effect between real estate and restaurant industry and whether this fixed business cost truly is a determinant of success for food business entrepreneurs in Helsinki Business District.