Fully Licensed Restaurant 300m2 – Palma De Mallorca For Sale

Property Information

Real Estate:

Lease

Location:

Palma de Mallorca City Center

Premises Details:

The restaurant is located on the ground floor and basement level of a mixed-use building situated on Calle Aragón, one of Palma de Mallorca’s busiest and most commercially active streets. The area benefits from high pedestrian and vehicular traffic, excellent visibility, and a constant flow of both local residents and tourists. The surroundings include retail outlets, offices, banks, cafés, and other hospitality businesses, making it an ideal setting for a successful restaurant operation.

The main entrance is at street level, with large windows that offer strong commercial frontage and natural light into the main dining area. The premises span a total of 318 m², distributed across:

A 153 m² ground floor, hosting the main dining room, bar, customer restrooms, and food prep areas.

A 165 m² basement level, fully usable and equipped with a second dining room, service bar, storage areas, staff facilities, and technical rooms.

The interior layout is optimized for high-capacity service, with well-defined zones for customer experience and operational efficiency. Both floors are connected via internal staircases and comply with safety and accessibility regulations.

Given its location, size, layout, and licensing, the premises are perfectly suited for established restaurant groups or investors seeking a turnkey operation in one of Palma’s prime commercial corridors.

Size in square feet:

318 m2

Planning Consent:

The premises benefit from full and definitive planning and operating permissions, issued by the Conselleria de Turismo of the Balearic Government.

Use Classification: A3 – Suitable for restaurant and bar use, including cooking and on-site food preparation.

Current License: Fully approved Restaurante con cocina, with valid and active registration in the Registro General de Empresas, Actividades y Establecimientos Turísticos.

Permitted Activities: On-premises consumption of food and beverages, preparation of meals with extraction systems, operation of two bar areas, and service to a maximum legal capacity of 157 people across two floors.

No pending applications or modifications to the current planning status.

There have been no recent extensions or structural conversions, and the premises are operating within their approved capacity and layout as per the original license. Any future modifications (e.g., façade signage changes, outdoor seating, or layout reconfiguration) would be subject to approval by the relevant municipal authorities.

This strong legal framework makes the business immediately operational and particularly attractive for investors seeking a secure and legally compliant operation in Palma.

Business Operation

Expansion Potential:

The business offers several clear avenues for growth and future expansion, both within the existing premises and through strategic adaptation to current market trends:

1. Take-Away and Delivery Potential
Located on Calle Aragón, one of Palma's busiest thoroughfares, the restaurant benefits from high pedestrian and vehicle traffic, making it ideal for a take-away model. The ground-level visibility and easy street access allow for:

Quick pick-up service for office workers and nearby residents.

A dedicated take-away counter at the entrance to streamline service.

High performance during lunch hours, leveraging the surrounding commercial activity.

Additionally, integrating with major food delivery platforms could open new revenue streams and stabilize income during off-peak dining hours or tourist low season.

2. Private Events and Group Bookings
With a total capacity of 157 people, and two independent dining levels, the space lends itself well to:

Hosting private events, corporate functions, or group dinners.

Renting the basement level for exclusive use, without affecting operations on the ground floor.

Offering themed nights or tasting events to attract repeat clientele.

3. Brand or Franchise Development
Given the size and location, this restaurant could serve as:

A flagship location for a local or international brand entering the Mallorca market.

A pilot unit for a scalable concept targeting tourist and urban markets.

4. Extended Operating Hours
Depending on licensing conditions, the business could expand into breakfast service or late-night dining/entertainment, tapping into early commuters and the after-hours crowd.

5. Optimization of Underutilized Spaces
Areas such as the basement storage and secondary bar could be repurposed or upgraded for:

A wine cellar experience, chef’s table, or speakeasy-style concept.

A production kitchen to support catering services or additional delivery locations.

With its location, infrastructure, and licensing, the premises offer not only immediate profitability but also long-term strategic potential for growth through diversified revenue channels and brand development.

Competition / Market:

The restaurant operates in a highly competitive sector, especially given its location in central Palma de Mallorca, a city known for its dynamic hospitality landscape and seasonal tourist demand. The area hosts a broad mix of dining options, from local eateries to international franchises, which creates a diverse but competitive market environment.

Key competitive factors the business has faced—or may face—include:

Tourism seasonality: The restaurant trade in Palma is significantly influenced by seasonal tourism patterns. Businesses must balance strong summer performance with potentially slower off-season months.

Labor market challenges: The local hospitality industry has experienced shortages of qualified staff in recent years, which may affect operations if not proactively managed.

Rising operational costs: Increasing costs in energy, raw materials, and wages may place pressure on profit margins, especially for operations with large floor areas and high occupancy.

Changing consumer preferences: Demand is shifting toward healthier, sustainable, and experience-driven dining, meaning that businesses must stay adaptable to evolving market trends.

Despite these challenges, the premises’ prime location, existing licenses, and large capacity offer a solid foundation for a restaurant group or operator with a defined concept and professional management. The infrastructure is already in place for a high-volume operation, which can outperform competitors through quality, branding, and customer experience.