Why a Good Location is Crucial to the Success of Your Restaurant or Café
Few things have more impact on a restaurant’s success than its location. Electrifying menu selections, passionate preparation and supreme service can all be powerless in the face of a poor location. Get informed on issues like real estate value, demographics, and local competition whether you are starting up your restaurant on a well-known site or starting construction on a new building, so as to position your eatery in the best and most lucrative place you can.
Below are some more reasons why you need to pay attention to location when acquiring a restaurant or café:
1. The location’s population base will affect the success of your business. Make the most of the free information available to verify the number of residents or businesses neighbouring a prospective location. Check census information (which is updated every ten years), take a look at unemployment reports by the local government and check housing values before choosing one particular site above another.
2. Your location will help you decide what kind of restaurant or café to open. For example, a fast food café with sit-down capacity will work much better if you were in the heart of the business quarter where nearly all of your traffic is lunchtime workers covering two shifts. On the other hand, if there are busy hotels within walking distance of your site, it will be a better bet to open a walk in, sit-down, order and eat restaurant with a lounge.
3. Who is the competition? What are you offering that beats them? You need to be superior to the competition whether you’re offering special cuisine, lower prices or tastier food. There’s no point in starting a sandwich shop if there are already three in the same neighbourhood. Also essential is to learn how the pricing works in the neighbourhood. For example, you might be hard-pressed to try to win with a fancier gourmet theme if all the restaurants around you are very low-priced.
By researching area demographics, location dynamics and your competition, you will be well on your way to mapping out a profitable site for your restaurant or cafe.