The Importance of Restaurant Location – A List of Location Selection Criteria For a Restaurant

Once you’ve decided to get started a restaurant business you have got to choose a location where your new venture can thrive. Location is of great importance to the viability of a cafe business. While you know you need a good restaurant location with plenty of space, there are lots of other things to consider. The following offers a listing of selection criteria that can be used to assess how good a specialized location is.

Nearby Zoning Regulations

Among the list of first things to check out while you are selecting a location for a restaurant is exactly precisely what uses the building is permitted being used for under the local zoning scheme.

Some sort of Trade Off Between Restaurant Location and Rent

It is obvious that a restaurant should try to be in a prime location that has good exposure and superior nearby traffic flows. However these types involving locations come at a price and that is the high rent that you will have to pay. A good alternative can be to have a less prominent location like down a side lane or relating to the second or third floor of an building. You will then be able to save a fortune with rent and negotiate much more favorable leasing terms along with the building owner. However you do ought to compensate for a poor location you’re eliminating top notch marketing plan together with food and service that encourages customers to go back.

Operation Size

You ought to have a pretty good idea of the length of the restaurant operation you want to establish. One of the basic requirements which has a location will be that it is large enough for you to arrange a restaurant of your desired size and strategy. Health and safety laws will dictate how many people can occupy this building so you should discover these requirements before you take a look at locations. You may end up deciding that this property that you thought was perfect is as well small for the clientele you might want to attract.


You will notice that restaurants are usually situated areas with good accessibility and tend to be close to business districts and residential areas. Being accessible will make certain you can attract the volumes of people that you have to sustain your business. Stand outside the building that you are considering using to open your restaurant. Count vehicle and base traffic flows and examine them with other locations you will be considering.

The exception to that rule here is for those who have an ‘out of the way’ location which include at a beach or maybe a vineyard for example. Sometimes the unusual location of an restaurant can become a selling point. Keep in mind that beneath the right circumstances people value features say for example beach view or mountain / hill scenery over convenience and accessibility.

Lease or even Buy

You need to figure out if leasing or choosing premises for your restaurant would be the best move. Both options have their advantages and disadvantages. Most restaurant entrepreneurs get started leasing and preserve their own capital for startup bills and business growth rather then investing in property while doing so.

Have some preliminary chats with building owners and make an effort to get an idea of how flexible they will be on the terms on the lease. Reaching an agreement over a lease is a lengthy process so it helps if you possibly can deal with building owners which you could communicate well with. The ought to be open to some negotiation and discussion.

Area Demographics and General market trends

Think about what type of neighborhood your proposed restaurant space is located within. Then think about be familiar with restaurant that would be well suited for the surrounding residents. Take more time to study the demographics of the area to attempt to find out the age, ethnic background and socio-economic status of the local population.

The local Economy and Location Selection

People will only be going out to restaurants in restaurants if they’ve already jobs and discretionary income to enjoy. Give some thought to help local economic conditions before putting together your restaurant. How is business sentiment inside local area?

The local economy will also affect your choice of concept. Fast food typically remains popular in a poor economy but higher priced menu offerings will probably not work well in a town where there are factory closures.

Competition and also other Businesses

Before deciding on a restaurant location among the list of criteria that you must consider is a other businesses that are in your community. A lot of competition is not necessarily a bad thing precisely as it means that the sector is healthy and can support a lot of restaurants. However you obviously want to minimize the competition that you have nearby your restaurant up to you can. At least make sure that you choose a restaurant idea that is unique in your community so that you have few direct competitors.

Additionally, you should find out if there are actually other businesses nearby that might be complementary to a cafe. For example, if there is a movie theater across the street from your restaurant then you may see good business from movie goers as they simply come in to dine before watching a dvd.


You should have a fairly good knowledge of how customers would arrive at a restaurant at ones proposed location. A great restaurant will ideally have its own parking lot. Depending on the concept, nearby public parking might also be acceptable. However, keep in your mind that many people only will drive on to another restaurant if they have nowhere to woodland there car. Note that in certain cities, proximity to public transport may be more important than car parking.

Exterior and Surroundings

Take a good look at the sidewalks and other buildings which might be around the location that in store. They can sometimes affect a prospective diners impression to your business. You will have small control over your neighbors so you want to choose a restaurant location with surroundings which might be neat, tidy and well maintained.

Renovation Bills

Different locations can have different costs associated using converting an available space to a restaurant. One big factor affecting the scale of renovations will be the buildings previous use. If the previous owner also ran a restaurant on the site then remodeling requirements should be minimal.

You should keep remodeling costs to a minimum if you are leasing a space for a restaurant. You could consider spending more if you’ll be able to negotiate with the building owner and have them contribute to these kind of costs. The length of your lease will also be a factor in determining how much to spend.

Take along a creating inspector or some contractors who have had experience remodeling complexes for restaurant owners and get them for their options on renovation costs.

When you decide to get started a restaurant take into account that location is one of the very important factors that might determine your success. Evaluate the above criteria as you work through the selection process. The building that you choose should not only take a prominent location nevertheless it should also be practical and functional to allow your restaurant to work smoothly.

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