Let your shop to F&B, a clinic or retail? A landlord guide

On a good ground floor, F&B operators usually bid the highest rent, but they also bring the most wear and the highest risk of leaving early. Clinics, pharmacies and convenience stores tend to pay steadier rent on longer terms with lighter fit-outs. The right choice depends on your shop: if it has the frontage, power and exhaust route a kitchen needs, F&B can be worth it, provided you protect the shop in the tenancy agreement.

This is general information, not legal advice.

Two facts frame the F&B side. Retail Group Malaysia said café and restaurant sales fell 4.6% year on year in the first quarter of 2026, and some independents closed in the second quarter (Malay Mail, 12 June 2026). The Edge (29 July 2026) quoted an agent who had seen new tenants "left abruptly due to the business not doing so well". So a high F&B rent is only worth it if the operator can carry it. Our guide on screening shop tenants covers the checks.

Landlords in strong rows can choose. One Cheras Jaya corner ground floor at RM 13,000 a month was advertised as "prefer pharmacy, Family Mart, coffee franchise, mamak", with a minimum of two to three years. That mix is typical of what owners of good corners look for.

They can, but the damage is predictable and you can price it in:

• Grease and smoke on walls, ceilings and the rear facade.
• Wet floors that wear waterproofing and tiles.
• Drains blocked by oil if no grease trap is fitted.
• Openings cut in walls or slabs for ducts and pipes.

How to protect the shop:

• A clear reinstatement clause listing what must be removed or restored; see reinstating a shop
• A deposit at the top of the usual range: 2 to 3 months' rent plus a utility deposit is standard (SPEEDHOME); see shop rental deposits
• Fit-out drawings approved by you in writing before any work starts
• Kitchen floor waterproofing and a grease trap where the council requires one
• A right to inspect with notice, and photos of the shop at handover
• The tenant's own insurance covering fire and third-party claims

Usually yes, on your terms. A shop with a working, approved exhaust is easier to let to the next F&B operator, and exhaust, 3-phase power and water points decide whether F&B is possible at all; see what a restaurant shop needs.

Set these terms in writing:

• Route. Agree the duct route on a drawing: through the back lane, or up the rear wall to the roof. On a whole shoplot you control the upper floors; on a strata ground floor you may also need the management or the other owners' consent.
• Approvals. The tenant obtains any council approval at its own cost. Rules differ by council, so check with DBKL, MBPJ or MBSJ.
• Nuisance. Filters, fans and noise must not disturb neighbours; complaints are the tenant's to fix.
• Cleaning. A cleaning schedule, with records, because a dirty duct is a fire risk.
• At the end. Decide now whether the duct stays (often useful for you) or is removed.

Each trade has a different checklist:

• Coffee chain. Visibility and space count most. Chagee's APAC CMO told Retail Asia (10 March 2026) its criteria are "significantly stricter than most beverage brands". Delivery-led chains care about pickup parking: ZUS had about 70% of sales from delivery and pickup in April 2025. See what shop a coffee chain wants.
• Pharmacy. A dense residential catchment, easy parking and nearby clinics. A corner or main-road ground floor helps.
• Convenience store. Households within walking distance; 99 Speedmart stores are designed to serve 1,500 to 2,000 households each (Apex Research via The Star). FamilyMart says it "will remain selective on locations" (The Edge, 27 August 2026).

The brands page lists which trades MCE matches with units, and our landlords page explains how we shortlist tenants for your shop.

Written by Tok Ginstee (REN 37505), CID Realtors Sdn Bhd (E (1) 1855). Updated November 2026.