How to Find the Perfect Location for a New Restaurant
Although it appears that the number of new restaurants has declined, Yelp data reveals their opening rate is on par with what we saw last year.
Yelp determined that more than 18,000 new restaurants opened in the U.S. in the quarter year ending December, down 4% from the previous quarter. The full year saw a 16% decrease over 2019 for total restaurant openings determined by Yelp metrics.
Are you considering opening a restaurant? If so, location is a key factor. Realtors are drilled with that word because it’s just as important for you to find the right spot as an entrepreneur: Location will make or break your business.
Why Is It Important to Find a Good Location
Opening a restaurant isn’t cheap, especially in this post-corona world. You have to think about kitchen appliances, licenses, and supplies, among many other costs. However, one of the most expensive aspects is your location.
Whether you’re buying or renting, the location can make or break your business.
You don’t want to spend too much money on location. You don’t want to end up broke down the line when you need money the most. On the other hand, you can’t afford to cut back on location money, because if your restaurant is located in a low-traffic area, you won’t be able to earn any of your investment back.
The trick is, you need to find the right balance. That’s what we’re here to help you with.
How to Find the Right Restaurant Location
The location of your restaurant will influence many aspects, including the menu and style of the dining room. Keep in mind that if you already have a certain location in mind, make sure it has all the right requirements for success.
· Your Location Needs to be Accessible
While you might imagine that the perfect restaurant is either in the city center or near a tourist attraction, this isn’t necessarily true. One of the most important factors in choosing a location is accessibility by both car and foot traffic for your customers.
When choosing a restaurant location, you should make it easy for potential customers to find and understand where the restaurant is located.
· You’ll Need a Parking Lot
One of the best ways to attract new customers is by making it easy for them to find and get in touch with you. For most customers, a parking lot is not much of a factor in determining which restaurant to visit.
Nevertheless, when your customer has difficulty finding nearby parking, it means they are no longer considering your restaurant. Even if your restaurant is handicap-accessible, it is important to remember that disabled people in wheelchairs face difficulties getting there.
· Make Sure There’s Transportation
If you are on the lookout for food and non-alcoholic beverages in a large city like London or New York, you don’t have to worry too much, because you can easily find transportation. If you decide to open a restaurant in a small city, it is important to consider public transportation options.
Many people don’t own cars in this town, and even those who do like to take the bus or ride a bike or walk to avoid parking challenges. Tourists come to the city center by public transportation. Many tourists use this form of travel, so you need to create an easy-access door location for your store.
· Check Out the Competition
Exploring the neighborhood or industry for the competition is an important way to sustain growth among restaurants and retail locations. How else can you be sure there isn’t already a restaurant like yours nearby?
Despite the importance of a price war for any business, avoiding one can save you a lot of trouble. Moreover, constantly being compared to an established and popular restaurant day in and day out is mentally draining.
The best way to set yourself apart from other restaurants in the area is by giving your customers something new and different. If you do so, then not only will they be coming back for years to come but it also shows that you value what other restaurant owners have done for your town.
· Zoning and Health Regulations
When you’re opening a restaurant in the United States, you need to familiarize yourself with the laws. That’s because different places or even neighborhoods in the same city often have very different health, zoning, and business regulations.
It is wise to look up the zoning and other regulatory information about any prospective location before committing. You can find this information on the website of your local government, so make sure to do your homework.
The Bottom Line
Among many other factors, location availability and convenience is an important consideration when choosing a location for your new restaurant. Analyzing geographic locations can help you determine the best location for your business and ensure a successful start.