Performance-Linked Retail Lease for F&B Brand on Bannerghatta Main Road

Client

Chaska Bun

Location

Bannerghatta Main Road

Asset Overview

A 1,200 sq.ft high-street retail unit positioned within a multi-store commercial cluster, offering strong visibility and consistent footfall potential.

The Mandate

To secure a retail outlet for Chaska Bun that balances prime location advantages with sustainable rental economics, ensuring the business can scale without being burdened by high fixed costs.

The Challenge

High-street retail leasing in Bengaluru typically demands heavy fixed rentals, which can strain F&B businesses, especially during early-stage operations.

The key challenge was to structure a deal that:

• Reduces fixed financial pressure

• Aligns rent with actual business performance

• Creates long-term sustainability for both tenant and landlord

KAZIA’s Strategy

Instead of a conventional lease, KAZIA engineered a performance-driven rental model.

The structure was designed with:

• A base rent of ₹40,000 per month, applicable up to ₹4,00,000 in monthly revenue

• A 10% revenue share beyond this threshold, allowing rent to scale with business growth

To ensure transparency and trust, the landlord was given access to real-time sales data through Petpooja, enabling seamless monitoring of revenue-linked payouts.

This approach transformed the lease into a data-backed, trust-driven commercial agreement.

Execution

KAZIA identified a strategically positioned retail unit on Bannerghatta Main Road and structured the agreement to align:

• Tenant profitability

• Landlord returns

• Long-term operational viability

The deal also introduced a collaborative dynamic, where the landlord actively contributes to increasing footfall within the commercial premises, further supporting business growth.

Deal Structure Overview

The lease was structured as a hybrid rental model, combining stability with scalability:

• Fixed base ensures low entry risk for the tenant

• Revenue share ensures upside participation for the landlord

• Transparent reporting ensures trust and long-term sustainability

3-Year Deal Value

While the base rental appears conservative, the real strength of the deal lies in its scalability.

Over a 3-year period, the total rental value is projected to range between:

₹18 Lakhs to ₹36 Lakhs+, depending on store performance

This creates a dynamic financial model, where:

• Lower sales reduce rental burden

• Higher sales proportionally increase landlord returns

The Outcome

• ✔ Reduced fixed cost for the brand

• ✔ Performance-linked scalability

• ✔ Full transparency via digital sales tracking

• ✔ Landlord aligned with tenant success

Strategic Impact

This transaction demonstrates a shift from traditional leasing to partnership-based retail structuring.

The result is not just a leased space, but a growth-oriented commercial ecosystem, where both landlord and tenant benefit from the success of the business.

“We structure retail real estate around business performance — not just rental benchmarks.”