In this article, we'll discuss eight things to consider when deciding your restaurant's location, and how Getplace.io can help you find the best space for your business.
Introduction
In 2023, restaurant site selection will be more critical than ever before. The COVID-19 pandemic has drastically altered how people dine out, and restaurant owners must consider various factors when selecting a location for their business. According to recent research, 60% of new restaurants fail within the first year, and choosing the wrong place is one of the primary reasons for failure. In this article, we'll discuss eight critical factors to consider when deciding on your restaurant's location, and how Getplace.io can help you find the ideal space for your business. This article is designed to assist those who are planning to open their first restaurant, coffee place, or burger shop, or those who are seeking to expand their existing chain of restaurants.
Let's take a look at some examples of how site selection can make or break a restaurant's success:
- A study conducted by the National Restaurant Association found that 50% of restaurants that closed within the first year of operation did so because they chose the wrong location.
- In contrast, the popular fast-food chain McDonald's attributes much of its success to its emphasis on strategic site selection. McDonald's carefully considers traffic patterns, population density, and accessibility when choosing new locations.
- The rise of food delivery services like Uber Eats and DoorDash has also influenced restaurant site selection. Restaurants that rely heavily on delivery orders may prioritize locations that are easily accessible for delivery drivers.
Whether you're opening your first restaurant or expanding an existing chain, choosing the right location is crucial for success. In the next section, we'll discuss eight key factors to consider when deciding on a restaurant location, and how Getplace.io can assist you in finding the ideal space.
1. Demographics
Understanding the demographics of the surrounding area is a critical consideration when selecting a restaurant location. It's essential to understand who your target customers are and if they live or work in the area. Consider factors such as age range, income level, education level, and lifestyle when evaluating the surrounding population.
Here are a few examples of how demographics can impact restaurant success:
- A trendy vegan restaurant may struggle to succeed in an area with a high population of meat lovers.
- A high-end restaurant in an area with a low median income may struggle to attract enough customers to remain profitable.
- A family-friendly restaurant in an area with a high number of retirees may not be as successful as one in an area with more young families.
According to a recent report by the National Restaurant Association, 75% of restaurant owners say that understanding their local market is essential to their business's success. By using data-driven insights, Getplace.io can assist you in evaluating the demographics of the surrounding area and determining if it's a good fit for your restaurant concept. This information can assist those who are opening their first restaurant, coffee place, or burger shop, as well as those who are seeking to expand their existing chain of restaurants.
In the next section, we'll discuss another critical factor to consider when selecting a restaurant location: competition. We'll also explore how Getplace.io can assist you in evaluating your competition and identifying areas of opportunity.
2. Footfall
Footfall, or pedestrian traffic, is a critical factor to consider when choosing a restaurant location. A high level of foot traffic can increase the visibility of your restaurant, leading to more customers and increased revenue. However, it's essential to balance this with the cost of rent in a busy area.
According to a study by the International Council of Shopping Centers, higher foot traffic can increase a store's sales by up to 40%. However, businesses located in high-traffic areas often have to pay a premium for rent, which can impact profitability.
To determine if an area has sufficient foot traffic for your restaurant concept, consider factors such as nearby attractions, transportation options, and pedestrian-friendly infrastructure. For example, a restaurant located near a popular tourist destination may see a high level of foot traffic during peak season but may struggle during slower months.
By using data from various sources, such as footfall sensors and Google Maps, Getplace.io can provide insights into the level of pedestrian traffic in different areas. This information can help you make data-driven decisions when selecting a restaurant location, whether you're opening your first restaurant, coffee place, or burger shop, or seeking to expand your existing chain of restaurants.
In the next section, we'll discuss the importance of parking when selecting a restaurant location and explore how Getplace.io can assist you in evaluating parking options in different areas.
3. Accessibility
Accessibility is a crucial factor to consider when choosing a restaurant location. Customers should be able to reach your restaurant easily by car, public transportation, and foot. Consider the proximity of parking, public transit stops, and walkability when choosing a location.
Research shows that customers are more likely to frequent restaurants that are easily accessible. According to a survey by the National Restaurant Association, 72% of adults say that easy parking is an essential factor in deciding where to dine out.
By using data from sources such as Google Maps and public transportation schedules, Getplace.io can help you evaluate the accessibility of different locations. This information can help you make informed decisions when selecting a restaurant location, whether you're opening your first restaurant, coffee place, or burger shop, or seeking to expand your existing chain of restaurants.
4. Competition
Researching the competition in the area is a crucial step in choosing a restaurant location. Are there already several similar restaurants nearby? How do they compare to your restaurant in terms of menu, ambiance, and pricing?
While some competition can be beneficial, too much competition can be detrimental to your restaurant's success. According to a report by restaurant industry research firm CHD Expert, areas with high levels of competition can cause restaurants to struggle and may lead to lower sales and profitability.
By using data from various sources, such as Yelp and Google Reviews, Getplace.io can provide insights into the existing competition in different areas. This information can help you make data-driven decisions when selecting a restaurant location, whether you're opening your first restaurant, coffee place, or burger shop, or seeking to expand your existing chain of restaurants.
5. Rent and Operating Costs
Rent and operating costs can vary widely depending on the location. When considering a location for your restaurant, make sure to factor in these costs.
According to a report by restaurant industry research firm Technomic, rent and occupancy costs can account for up to 10% of a restaurant's total revenue. It's essential to ensure that your restaurant can generate enough revenue to cover these costs and remain profitable.
By using data from various sources, such as rent reports and utility bills, Getplace.io can provide insights into the expected rent and operating costs in different areas. This information can help you make informed decisions when selecting a restaurant location, whether you're opening your first restaurant, coffee place, or burger shop, or seeking to expand your existing chain of restaurants.
6. Visibility
Visibility is another crucial factor to consider when choosing a restaurant location. A highly visible location can help attract customers to your restaurant. Consider a space with large windows, outdoor seating, or other eye-catching features.
According to a survey by the National Restaurant Association, 47% of adults say that the appearance of a restaurant's exterior is an essential factor in deciding where to dine out.
By using data from various sources, such as Google Street View and social media feeds, Getplace.io can provide insights into the visibility of different locations. This information can help you make informed decisions when selecting a restaurant location, whether you're opening your first restaurant, coffee place, or burger shop, or seeking to expand your existing chain of restaurants.
7. Zoning and Permits
One of the most important steps in selecting a location for your restaurant is to ensure that you have the necessary permits and licenses to operate in that area. Zoning laws and permit requirements can vary by city and even by neighborhood, so it's important to research these regulations before signing a lease. Failure to comply with zoning laws and permit requirements can result in hefty fines, legal trouble, and even the closure of your business. Additionally, some areas may have restrictions on the types of businesses that can operate there, so be sure to do your due diligence to ensure that your restaurant is allowed to operate in your desired location.
8. Future Development
As a restaurant owner, it's important to look ahead and consider the potential for future development in the area you're considering. Is the area growing and developing, or is it stagnant? Are there any plans for new residential or commercial developments in the near future? This information can help you make a more informed decision about the long-term viability of the location you choose for your restaurant. Keep in mind that while a location may seem ideal now, it may not be as promising in the future if the area is in decline or if new competition arises. Therefore, it's important to stay ahead of the curve and make sure your restaurant is well-positioned for future growth and success.
Conclusion
Choosing a restaurant location is a complex process that requires careful consideration of multiple factors. By keeping these eight things in mind, you can increase your chances of finding the perfect location for your restaurant.
How Getplace.io Can Help: At Getplace.io, we combine multiple data sources to help offline businesses find the best locations for their new store. Our platform provides insights into footfall, vehicle traffic, demographics, competition, and more to help you make informed decisions about your restaurant's location. By using Getplace.io, you can reduce the risk of failure and find the perfect space for your restaurant.