Anyone can open a business anywhere, but success is not guaranteed. Restaurants fail for a variety of reasons, one of which is poor location selection. The problem may be traced to limited foot traffic or a restaurant concept that doesn’t suit the area’s demographics. Finding the right location for your new restaurant can be challenging. But these best practices will lead you in the right direction.
Right Location Demographic Survey
Research your location’s demographics, including:
- Age
- Gender
- Profession
- Ethnicity
- Marital status
- Income
- Level of education
Consumer preferences vary depending on these demographic details. The best location for your restaurant is frequented by locals and tourists. You can attract with your restaurant menu and ambiance.
A step further than demographics is what marketing experts call psychographics, which are the unique characteristics or attitudes of the most prominent demographics within the area. It can also help in finding the right location for your new restaurant.
Foot and Vehicular Traffic
Heavy foot traffic within the vicinity of your restaurant is ideal—when people walk or drive by, they may be curious about what you offer and try it out soon. It is best to choose a spot that faces a main throughway or is near or around heavy commuting or driving areas.
Accessibility
Accessibility can be interpreted in many ways. But, all of them will contribute to how to find a location to open a new restaurant. First, it means convenience—customers don’t want to drive or walk too far for most restaurants. Easy access means along main streets and bustling commercial areas.
Parking is another critical matter, unless you are in an area where people travel primarily by foot or through public transportation.
Restaurant Size
The type of restaurant you plan to open will directly impact its size and location. Commercial real estate may be limited in bustling cities, so you might have to compromise on size. If you want a large, sprawling space for your restaurant, smaller towns or suburbs may be a better choice.
Competition
Learn all about the other restaurants in the area you are eyeing. It may be difficult to compete wit them.
Competitor analysis will also help you understand why some restaurants are more successful than others. You ca use this data to take your own operations to another level.
Budget
Real estate in a highly urbanized or large city is much higher than in the suburbs. It is a balancing act—higher foot traffic in a busy city may translate to larger profits that will balance out an expensive lease.
Conclusion
Choosing a location for your new restaurant is one of the most important decisions you will make. Many factors affect how to find a location to open a new restaurant.
This is why it pays to have a partner like TRG Restaurant Consulting. Our restaurant and consulting firm has helped many entrepreneurs with their endeavors. We help with everything, from conceptualization to finding the perfect location, branding, design, and more.
Interested in our service? Get a free quote today!
