4 Factors When Choosing A Restaurant Location
When you are opening a new restaurant or another location of a current establishment, the location you choose can drastically affect the success of your business. Hiring a consultant can help you choose the most profitable business location for a restaurant.
Competition
Restaurants often consider their competition when opening. It is better to choose a location where there are no direct competitors nearby. Not every type of restaurant is a direct competitor. For example, if your restaurant serves Italian food, you will want your restaurant to be located in a part of the city where Italian food is scarce or non-existent. There is no reason to consider restaurants that serve other types of cuisine as a direct competitor, and the more choices people have in a specific area, the better.
Traffic
Traffic is your proximity to major roads. Although the idea of being located on a major road can seem like it would increase the success of your business, this is not always the case. Think about how easy it is for people to turn from the street into your parking area. If your business is located in an area that is cumbersome or dangerous for people to access, this will reduce the amount of customers that come to your business. Some restaurants will not do well on major roadways. If your restaurant is more upscale and perfect for a romantic dinner, the mood will quickly go downhill if the noise of a busy highway is all customers can hear.
Customer Demographics
Your restaurant should be located in an area that makes sense for the price and type of food you sell. Restaurants that are more affordable and are geared toward fast service will find being located near a college campus, shipyard, or military installation is the ideal location. Even fast casual restaurants might find they do not attract much business in these locations because many of these people are looking for fast food on their lunch break or between classes. Any restaurant that is a sit-down establishment might find they perform better near major shopping areas, movie theaters, or other places where customers are more likely to sit down for a leisurely meal.
Incentives
Incentives can play a role in the location of your restaurant, especially if you are a new business owner. Some localities offer incentives for people to build businesses in certain areas of the city, especially areas that are upcoming or being revitalized. Another type of incentive that may be applicable are incentives for small businesses, especially those that are women- or minority-owned businesses. Some cities that are prime locations for businesses want to attract business owners who are members of populations that may have previously been excluded from some of the best business locations.
Location remains the make or break choice for any type of business, especially restaurants. With the help of a consultant you are more likely to choose a location that makes your business successful.