Home » Business » Strategic Planning

How to Choose A Restaurant Location

Nov 22, 2007
Wouldn't it be wonderful if the selection of a site for a restaurant could be determined with a geiger counter or a dip stick? We could walk along proposed sites and nonchalantly wait for the buzzing of the counter or the sharp down pull of the dip stick to tell us that this is it!

Unfortunately, no one has invented the proper device to pinpoint, successfully, the proper location. Our concern with location is realistic because so much of a restaurant's success may depend on its location. Furthermore, as time passes a location that was regarded as an ideal location can slowly turn sour.

How can a successful location be determined? There is no sure fire formula which will work for all types of operations. All the factors that contribute to proper location must be analyzed individually in terms of the operator's desires, the type of operation, and the market for the product. It is self-evident that for each type of operation there can be a difference in the menu pattern, menu prices, service of food, need for skilled labor, frequency of food deliveries, and the volume of business necessary to break even.

If you have decided upon the region in which you prefer to establish your home and your business, you have already narrowed down your location choices and can begin to make a more careful inspection of the several communities that you have in mind.

Checks on the Community

The next step is to make a quiet but rather complete analysis of the possible communities. Are they supported by an agriculture or industrial economy? You are trying to determine whether or not there will be a sustained demand for your product and the community's ability to pay now and in the future. Spend several days in each community. Visit the bankers and business people in the local chambers of commerce. Talk with relatives, friends, and strangers. Get acquainted with the various realtors, brokers, restaurant supply houses.

Check with the local office of unemployment. Be alert to their comments. Are the people friendly or antagonistic? Do they make you feel welcome? Does a large majority of persons consider that the town is barely holding its own? Is there a large supply of labor, food, and equipment available? Can you obtain these at a reasonable cost?

After you have evaluated the answers to these questions and have decided on the community, the next step is to analyze your personal qualifications and the neighborhood in which you intend to establish your operation.

In order to do this, consider your ability, training, experience, personality, financial resources, likes and dislikes. In terms of these considerations you will make or perhaps have made a decision regarding the type of food service operation that you are best qualified to operate. This decision will certainly affect your location.

Checks on Your Operation

Your entire management pattern is distinctly different with a drive-in as compared to a cafeteria or an atmosphere table-service restaurant. Will your operation be a specialty house or will you feature many popular items? What is your basic menu pattern? Do you have a high or low priced menu?

Have you made an analysis of your basic menu pattern and determined your probable average check per person? On the basis of the average check per person and the volume of sales needed to make the desired profit, have you determined the number of customers needed to attain the necessary sales volume?

At the location that you are considering, what is the direction, density, duration, type, sex, age, and income levels of the traffic? How does this analysis of traffic compare with the requirements of your operation? What type of neighborhood is needed for your operation? Is the neighborhood composed mostly of suburban residents? Shoppers, office help, amusement seekers? Is the neighborhood growing? What are the potential sales now and the outlook for the future?

As an intelligent businessman, be sure that the business potentials are thoroughly investigated and a budget made of proposed investment, estimated gross income, general and operating expenses. You can then make an educated guess as to the financial success of your venture.
About the Author
Long Lost Manuscript Resurfaces Revealing The Must Know Strategies On How to Run a Restaurant

Click here for FREE online ebook!

Please Rate:
(Average: Not rated)
Views: 898
Print Email Report Share
Article Categories