Investment approach
Restaurants and Hospitality as Tenants: Risks and Security
A restaurant counts as a higher-risk tenant: turnover is volatile, the fit-out is expensive and the permits are harder. The owner needs security beyond the fianza and a rent-to-revenue calculation.
A restaurant as a tenant generally carries more risk than a tenant with steady revenue: turnover swings, the fit-out is expensive, the permits are harder, and at the end of the contract it may have a right to compensation. The owner of the premises needs three things: security beyond the mandatory fianza (deposit), a calculation of rent as a share of revenue, and verified permits for the activity.
Why catering is riskier than a shop
Each of these differences is checked separately, and none is solved by the price of the rent.
- Turnover. A restaurant's revenue depends on the season, footfall and reputation. I found no separate survival statistics for restaurants. According to INE, of companies created in 2018 (all sectors), 41.9% were still active five years later (Demografía de empresas 2023, 12 November 2025). That is an overall rate, not an estimate for catering.
- Fit-out. The kitchen, extraction and equipment make moving expensive for the tenant. If it leaves, the owner is left with premises with a specialised fit-out.
- Permits. The regime depends on the type of activity under Catalonia's Ley 16/2015, and in the centre use plans for premises apply. On 29 May 2026 the Ajuntament approved a new plan for Ciutat Vella. According to Ara, it restricts new licences for souvenir shops, 24-hour supermarkets and some other types of retail; that report says nothing about bars and restaurants, which has to be checked in the text of the plan. Whether this activity needs a licence in your premises is checked before the deal: see the article on the activity licence.
- Noise, smoke, neighbours. Complaints and restrictions can stop trading. Whether extraction and soundproofing are in place is a question for an architect.
What security to ask for
The law leaves the owner room: art. 36 LAU requires a fianza of two monthly rents for non-residential leases, and the parties may agree on any additional guarantee. The cap on additional guarantees at two rents (art. 36.5) concerns housing.
| Type of security | What it gives | What to look at |
|---|---|---|
| Cash fianza | Two monthly rents, mandatory (art. 36.1) | Whether it was paid and deposited with Incasòl |
| Bank guarantee (aval) | Money on the bank's demand | Term, amount, payment conditions |
| Personal guarantee | Liability of the business owners | The guarantor's solvency, the form |
| Deposit above the fianza | More money in hand | Conditions of return |
For a non-residential contract there is no cap on the size of an additional guarantee in art. 36.5. But since 8 October 2026 the same paragraph, as worded by Real Decreto-ley 29/2026 (not yet validated by the Congress), adds that under no circumstances may the tenant be required to take out rent-default insurance or similar cover. Art. 36 sits in the general Título IV, so the rule may also touch non-residential leases; how exactly is for an abogado to decide. What to ask for and in what form you decide with the same abogado.
How much rent a restaurant can bear
The measure of a contract's strength is rent as a share of revenue. Worked example: rent of 6,000 € a month.
| Monthly revenue, € | Share of rent |
|---|---|
| 60,000 | 10% |
| 45,000 | 13.3% |
| 30,000 | 20% |
A 25% fall in revenue raises the rent share from 10% to 13.3%. I found no universal safe threshold: it depends on the format and the costs. Ask the tenant for 24 months of revenue and check it as in the article on tenant verification.
What happens if the tenant becomes insolvent
Insolvency in itself does not end the contract. Under the TRLC (the Insolvency Act), a declaration of concurso is not grounds for early termination (art. 156), and clauses allowing termination for that reason are deemed unwritten. Obligations under reciprocal contracts continue to be performed, and payments due from the debtor are charged to the estate (art. 158). A contract can be terminated for non-performance after the concurso is declared (art. 161), and the claim is brought before the judge handling the case (art. 162). The practical conclusion: you watch the premises from the first late payment, not from the moment of insolvency. The specific strategy is set by an abogado.
What happens at the end of the contract
Compensation under art. 34 LAU applies to catering too. In its judgment 274/2026 of 20 February 2026, as reported by idealista, the Tribunal Supremo said that what matters is not the formal classification but the premises' ability to generate clientele, and awarded a bar tenant ten monthly rents. The conditions of art. 34: five years of commercial activity with sales to the public, and notice of extension four months before the end of the term. Details are in the article on traspaso and compensation.
When a restaurant does not suit as a tenant
It does not suit you if you build the calculation on steady income with no work on the tenant relationship. It does not suit someone who accepts the contract without auditing revenue and security. One more case: premises in a building with sensitive neighbours, where extraction and noise will cause conflict. To check a contract with a restaurant tenant you can use the deal analysis, and DNPI's approach is described on the commercial strategy page.
Questions and answers
What fianza does a restaurant pay?
Two monthly rents in cash (art. 36.1 LAU). The parties may agree on any additional guarantee, for example a bank guarantee.
Can the lease be terminated if the restaurant is declared insolvent?
Not because of the insolvency itself: art. 156 TRLC treats such clauses as unwritten. Termination is possible for non-performance after the concurso is declared (art. 161 TRLC), through the judge handling the case.
Is a restaurant entitled to compensation at the end of the lease?
Possibly. In 2026 the Tribunal Supremo recognised it for a bar, based on the premises' ability to generate clientele. The conditions of art. 34 LAU must be met, and this is a question for an abogado.
What share of revenue should go to rent?
There is no universal figure. Compare the rent burden against the tenant's revenue over 24 months and check what happens if it falls by 25%.
