How to Choose the Right Restaurant Location

Famously expressed by British real estate mogul Lord Harold SamuelThere are three things that matter in property: location, location, location. The sentiment of this statement is particularly true for the restaurant industry because of its geospatial nature. Who a restaurant can cater to heavily depends on its address. Customers will only travel a certain amount of time to eat.  

Specificallyon average, aindividual is willing to drive 17 minutes to arrive at restaurantTherefore, a restaurant’s location significantly impacts its success, and it is of upmost importance to understand how to choose the right one. 

How to Choose the Right Restaurant Location 

The address of a restaurant impacts the bottom line. Here’s four criteria to regard before purchasing a location 

  1. Visibility 

For restaurantsvisibility, or the degree to which an establishment is seen, is keyRestaurants that do not have proper signage or that are covered by large buildings will go unnoticed by the local market. Simply put, individuals will not dine in an establishment if they do not know its there.  

There are many walk-in restaurants located in high foot-traffic areas, and one reason new customers visit these restaurants is out of curiosity. Visibility triggers this curiosity by making customers aware the restaurant exists. 

  1. Accessibility

Customers value convenience — in a recent study conducted by the National Retail Federation, it was discovered that more than 80 percent of consumers value convenience more today than they did five years ago.  

Accessibility, or the ease at which a location can be reached, ensures convenience. For instance, many successful restaurants, such as McDonald’s, are located by highway exits. This is because people can easily access the location; getting to the restaurant is easy, simple and not out of the way. 

  1. Parking Availability  

Apart from restaurants located in big cities, the availability of parking is another important criterion to consider when choosing a restaurant location. Lack of parking could result in employees running late for workcausing them to grow frustrated. With upset employees, customers may be more likely to experience negative customer service.  

What’s more, if customers do not have a place to park their car, or if they must spend hours looking for a parking space, many will choose not to dine in certain restaurantsIndividuals do not enjoy driving in circles, especially when they are hungry.  

  1. Affordability 

The fourth and final criterion that should be assessed when determining if a restaurant location is right or not is affordabilityStaying on a budget is importantAccording to industry benchmarks, in order to ensure profitability, rent should not be more than six percent of a restaurant’s total salesAdditionallytheres no use in purchasing an extremely luxurious property that is simply too expensive. This could drive a restaurant to its end. 

Choosing the right location is one of the most crucial steps in restaurant development. Using the four criteria above to assess a possible address, restaurateurs can determine which location best meets their needs.