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8 Factors That Make A Location Suitable For A Restaurant 

If you are looking to open up a restaurant or coffee shop, you must have learned that the single biggest factor to consider is the location for your business.

There are very many ways that a bad location may affect the performance of your restaurant.

Some of the factors discussed include;

  • Lack of a parking space – People don’t want to dine in a place they can’t easily park
  • Poor visibility – If you are so far from the town, and no one can see your shop, how will they know what you sell?
  • Insecurity – No one wants to eat in a place where they are in fear of being robbed.
  • Are other restaurants flourishing in the area? If the answer to this question is no, you may consider changing your location.

This proves that not every available spot you come along during your search is your answer.

In this article, I will discuss the specific features to look out for in your location search.

1. Parking.

Lack of parking space for customers can significantly affect the number of clients in a restaurant.

It is, therefore, crucial to ensure that the location you choose has a ground that you can rent for your customers.

If this is not an option, you can collaborate with a nearby hotel to allow your customers to park in their space.

2. Visibility.

It is not a coincidence that any of the top 5 restaurants that come in your head are in the highways of the urban areas.

In fact, you painfully admit that the quality of products and services of the restaurants may not be excellent. However, they still get away with it and get huge traffic.

That said, you have to analyze who the location is visible to; if it’s not your target market, then the location may not profit your business.

3. Crime Rates.

This is among the factors that you are unconsciously bound to overlook. A high crime area does not only risk your customer’s security but your business’s security as well.

No one wants to keep watching their back and hoping for the worse.

4. How Are the Other Business Doing In the Area?

Why is the room available, vacant? What was the past owner selling? You don’t want to walk blindly to a place where everyone is exiting.

Research to know what leads to closure of businesses in the surrounding areas, if the location has something to do with it, it’s time to move to the next option.

Also, check what kind of businesses are thriving in the neighborhood. If it’s a bus station, then the location will only work if you will sell coffee or have major breakfast ideas.

5. Affordability.

You have finally landed in a perfect location; it has excellent visibility, no crime, etc. The next thing to consider is the cost of the rent.

It’s normal for a suitable location to be expensive. If, according to your plan, you will afford it and still have profits, it’s worth it.

However, it will only work out if you have enough to pay for it before you start making a profit.

It’s not worth to be struggling in debt in your first month of business.

6. Space Size.

A good restaurant will have enough space to accommodate all your requirements. If your restaurant is near the urban streets but can only hold five seats, then it is not worth it.

Enough space will reduce the costs that are incurred in catering for work accidents, slips, falls, and trips.

No one wants coffee spilled all over their clothes on their way to work.

7. Competition Levels.

If you are the fifth person to open a burger shop, you may need to rethink your decision. However, if you think the location can handle another burger restaurant, you can go for it.

Make sure you can answer questions like;

How do I plan to differentiate your restaurant from the present ones? How will I fairly beat the competition and get your customers?

8. Labour Cost.

This one factor that entrepreneurs forget to consider. Keep in mind that the labor regulations are different in every city and state.

If the cost of labor is very high, it will cut into your profits, which makes the location unsuitable.

Bottom Line.

The bottom line is an excellent location is something that you have to consider before setting up your restaurant.

Saving time to evaluate your location may save you lots of headaches in the future.

Once you have found your location and your business set off – you will need to ensure that everything is running smoothly, even when you are away.

This is where Points of sale restaurant comes in. They help you know all the activities that are happening in your restaurant, whether you are online or offline.

You can, therefore, be assured that poor management, which sinks many restaurants, after a poor location, does not kill your dream.

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Young Upstarts is a business and technology blog that champions new ideas, innovation and entrepreneurship. It focuses on highlighting young people and small businesses, celebrating their vision and role in changing the world with their ideas, products and services.

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