Where is the market research that says you really need a restaurant in that area? Where will you get the financing to do the repairs? How much time will the landlord give you to get the repairs done? Is the landlord willing to pay for any of the essential repairs?
There are a lot of factors other than marketing that you'll need to address, and you'll need to find out what factors in your marketplace will allow you success. Basically run a marketing analysis and get some research done to be sure it's worth going for.
It can be a great idea if the market is willing to patronize your establishment. You'll also have to figure out what you're going to do that will make your restaurant unique (if you haven't read "Purple Cow" by Seth Godin, you should).
A business plan will be the final tell-all as to whether or not it's a good idea. Bottom line, don't go in blind, if it feels right find the data that will justify it and other data that will present challenges to overcome. A S.W.O.T. analysis is definitely needed.
Question added to topic Franchises • October 22, 2010
What's the best way to recognize a good business opportunity?
We found a restaurant in a great location for sale for under $40,000, but it needs about $30,000 in repairs. The landlord is offering free rent during construction. The rent will be $5,000 a month.