In the restaurant business, location isn’t everything — but it’s close. The wrong location can doom even the best concept, while the right location can carry a mediocre one. Here’s how to evaluate and choose a restaurant location that sets you up for long-term success.
Understand Your Target Customer First
Before you look at a single property, you need to know exactly who your customer is. A fine dining restaurant targeting young professionals needs a different location than a family-friendly diner or a health food café. Define your ideal customer’s age, income, lifestyle, and dining habits before beginning your location search.
Traffic Counts Matter
High foot and vehicle traffic is generally good for restaurant visibility, but context matters. A location on a busy highway is great if your concept is fast food or takeout. A hidden alley can work perfectly for an upscale dining destination that people seek out. Match your location’s traffic profile to your concept.
Study the Competition
Too many similar restaurants in one area creates destructive competition. Too few can mean there’s no dining culture in the neighborhood. Look for areas where there’s food traffic but a gap in your specific concept. Readers may also want to visit Quick PayDay Loans.
Evaluate Parking and Accessibility
Limited parking kills restaurants. Especially in suburban markets, customers will choose convenience over loyalty. Make sure your location has adequate parking or is within easy walking distance of public transportation.
Analyze the Neighborhood Trajectory
Is the neighborhood improving or declining? Opening in an up-and-coming area can mean lower rent now and a flood of new customers as the area develops. Opening in a declining area, even with low rent, can be a slow-motion business disaster.
Consider Your Lease Terms Carefully
The length of your lease, your rent escalations, tenant improvement allowances, and exit clauses are all critical. A five-year lease with two five-year options gives you stability. A landlord who won’t negotiate gives you a red flag. Have a commercial real estate attorney review any lease before you sign.
Health and Wellness Concepts Thrive in Specific Areas
For a related read on this site, see Should You Start a Brick-and-Mortar Restaurant or Go. Your customers are already congregating in these areas.
Check Zoning and Permits
Not every commercial space is zoned for food service. Before falling in love with a location, verify that it’s properly zoned for a restaurant and that permits for a commercial kitchen will be approved.
Visit at Different Times
A location can look very different at noon on Tuesday versus 7 PM on Saturday. Visit your prospective location at multiple times and days to understand traffic patterns, parking availability, and neighborhood energy at different hours.
Think Long-Term
The best restaurant locations are chosen for the long game. As Eat Well and Live Long suggests about life choices — sustainability and forward thinking always outperform short-term convenience. Choose a location where you can build a loyal, local customer base over many years.
Location is a decision you’ll live with for years. Make it carefully.
