Opening a restaurant is always a combination of culinary ambition and a well-thought-out strategy. Many aspiring restaurateurs put a lot of effort into the menu, interior design or staffing, but forget about the most important factor for success – choosing the right location. Even the most talented chef and stunning design of the hall will not save the business if the restaurant is in a place where it is difficult to get to or where there are simply no customers.
Choosing the ideal location is not luck or chance, but the result of careful analysis. Let’s find out what steps will help you find a location that will become a solid foundation for future success.
Why location is critical
The location of a restaurant is its “business card”. Attendance and revenue directly depend on it.
- Traffic and customer flow. If a restaurant stands on a busy street, it is noticed by hundreds of people every day. This natural flow can replace some of the marketing costs.
- Conformity with the concept. The location should reflect the idea of the establishment. For example, a cozy family cafe near the park will look organic, and an elite restaurant with a tasting menu is more likely to “take root” in the city center, near business districts or expensive hotels.
- Operational amenities. Vendor access, parking availability, proximity to a subway or bus stop all affect the comfort of guests and employees.
A restaurant is not only about cuisine, but also about logistics. If it is inconvenient for a client to get to you on a weekday evening, they are likely to choose another place.
Key factors in the selection process
In order not to make a mistake, you need to assess the location from different angles. Below are the main factors to consider.
Demographics and audience
Who are your guests? This is the first question a restaurateur must answer. If you are making a burger shop, it makes sense to look for neighborhoods near universities and dormitories. If you are planning a family restaurant, look at residential areas with a large number of apartment complexes.
It is useful to collect data on the age, income level, habits and even gastronomic preferences of neighborhood residents. These figures will show how much your concept will be in demand.
Competitors
There will always be other restaurants and cafes nearby. The question is which ones. Sometimes the presence of competitors works for you: if in one place concentrated different cuisines, it attracts visitors, because they have a choice. But if the neighboring street is already three pizzerias, open a fourth is not too reasonable.
It is better to find a niche where you can stand out – unusual menu, special atmosphere, author’s style.
Visibility and traffic
Imagine a person walking down the street. Will he see your restaurant? Bright signage, shop windows, lighting – all this influences the flow of casual visitors. The inner hall should also be “enticing”: people are eager to enter where they can see a lively atmosphere and satisfied guests.
Traffic should be assessed in figures. Some countries even have special pedestrian traffic counts. But sometimes it is enough just to stand near the chosen building at different times of the day and observe.
Financial profitability
The location should not “eat up” all the profit. It is considered that rent should not exceed 8-10% of revenue. For example, if you are planning a turnover of 2 million roubles a month, the rent should be within 150-200 thousand.
Don’t forget about hidden costs: taxes, utilities, repairs, possible fines. Sometimes it is better to take a place a little farther away, but with an adequate rental price, than to go broke on a “golden square”.
Regulations and infrastructure
Before signing a lease, make sure the building is suitable for a restaurant. You need an extractor hood, a certain kitchen area, and the right sanitary conditions. Often restaurateurs face a problem: they find a beautiful space, but the zoning does not allow them to open a catering establishment there.
Infrastructure also plays a role: the availability of parking, the proximity of warehouses and suppliers, the possibility for couriers to pick up orders quickly.
Checklist for location assessment
To structure the selection, it is convenient to use a table or a list of criteria. Here is an example of a checklist:
Criterion | What to check |
Demographics | Neighborhood population, median income, age, dining habits |
Competitors | Number of establishments nearby, their strengths and weaknesses |
Traffic | Pedestrian traffic, ease of access, availability of public transportation |
Visibility | Is the restaurant clearly visible from the street, is there room for signage or a terrace |
Rent | Price to projected revenue ratio |
Infrastructure | Parking, access roads for suppliers, delivery facilities |
Regulations | Regulatory compliance, catering permits |
Layout | Is there enough space for kitchen, hall, storage, staff? |
This example shows how important it is to consider not only the rental price, but also the integrity of the picture: audience, competition, infrastructure.
Final tips
Once you have studied the demographics of the neighborhood, evaluated competitors, checked traffic and calculated the financial burden, the most important thing left is to make the final decision. At this stage, it is useful to rely not only on numbers and analytics, but also on practical recommendations that will help you avoid common mistakes.
Here are some tips to consider when choosing a restaurant location:
- Don’t chase only cheap rent. A low price often means poor traffic. You’ll end up having to spend more money on advertising.
- Think about accessibility. If you’re hard to get to, customers will choose a more convenient location, even if you have a better kitchen.
- Avoid hidden traps. Upper floors of business centers, basements and hard-to-reach buildings rarely bring a steady stream of guests.
- Adjust to the concept. A coffee shop is great near offices, and a family cafe near residential neighborhoods.
- Evaluate the future. The area may be “raw” now, but if a metro or a large residential complex is built there, the location will become golden in the future.
Ultimately, choosing a location is a balance between rational calculation and gut feeling. Use analytics, observe people, count traffic, but also trust your intuition. After all, a restaurant is not only a business, but also a story you create for your guests.