How to Choose the Best location for a new restaurant: 6 Tips

In the case of finding the perfect place for your new restaurant is involved, “location, location, location” is the rule.

Many are aspiring to own and start an established restaurant. The most important word is, naturally “successful.” (Check for my conversation on Tyson Cole for more on how to start a great restaurant.) In nearly all cases, the path to success in business begins with choosing the best site for their new restaurant.

It’s evident that it’s not an easy task, but, every year, many restaurants go under.

However, some don’t even qualify for restaurant owners who are just beginning their careerswhich is the reason I spoke with Samir Changela about the reasons he picked the location of the Tilted Kilt Pub & Eatery franchise in Boca Raton, Florida.

Before opening an eatery, Samir ran a successful practice in pedorthics (pedorthics is the creation of, manufacturing, or modification of prosthetics and footwear.) When the changing healthcare sector impacted his business, Samir decided to move in the opposite direction.

“In the college years,” Samir says, “I had been waiter, bartender and server. I love craft beers, food and wine… therefore, when my current wife took me to the Tilted Kilt in Chicago, and the owner of the place told that he enjoys his work… I made the decision to join that place.”

However, it took him three years to locate the ideal location. But if you want to open a restaurant in Turkey, you can visit yummyadvisor.

Samir’s tips on how to locate the best spot for your restaurant’s new location.

1. Look beyond demographics and dive deep into psychographics.

Demographics are definitely important. Factors such as the average income, age and family size and so on. in a certain radius definitely matter. However, that information is based upon census information, which is outdated and not up to date.

Additionally, if you focus only on demographics, you might not be able to exclude those who don’t meet your demographic criteria , but they could nevertheless be customers.

It is known that the Tilted Kilt demographic, for instance, is dominated by males which makes it a significant market for marketing efforts however, a large amount of women patronize the store on Happy Hours.

“That’s where psychographics are useful,” Samir says. “You must know what the customer thinks. Demographics can tell you a lot about the person you want to target Psychographics will give you information about the “‘why.’”

“For instance,” he continues, “women visit our restaurant due to the fact that we serve delicious food. While they may initially visit for the atmosphere however, they will return due to good food.”

Make sure you look past your target demographic. Who will be your guests? Engage with the community. Find out what they are thinking about your brand or your business idea.

It’s not possible to get this information from the census.

2. Do not settle for the standard radius.

The usual method to establish the base area of trade is drawing a circular outline around the location , based on assumptions about different behavioral aspects. In Samir’s instance the decision was to use 20 minutes of drive time.

“I believe that most people won’t travel further,” Samir says. “Some people will drive a bit to go to the Tilted Kilt, but not the majority. Many people come to us because we’re close to their work or their home. The convenience factor is important.”

It doesn’t mean that those who live outside this radius will not visit his restaurant, but it does mean that they’ll visit less often than those who live close by. (And do not overestimate the frequency In general terms, “much less often than you’d like” can be a useful rule of thumb to adhere to.)

Also, make sure that you know the customs of people living in the vicinity. Samir’s home is located in East Boca; while West Boca is just 15–20 minutes miles away, West Boca residents are likely to not be regulars. This is also the case my home within Virginia Beach; people who reside in”the “shore side” are less likely to go towards”the “bay side” despite the fact that both locations are just 10 minutes apart.

3. Do not take shortcuts and consider “perfect spot” as your ultimate goal.

Samir was able to spend nearly three years locating the ideal place. In the end, he chose an area on the grounds of an airport that is privately owned . Nearby is the biggest cinema in the region. They sell around 1.6 million tickets each year. The result is built-in travel.

His site is also right next to Interstate 95 which has access to the highway, meaning that driers are able to see his sign, and around 240,000 vehicles pass through every day. The exit is just one few minutes away.

The airport itself is also a source of the traffic since a large number of luxury clients utilize the airport. Tilted Kilt targets men with six-figure salaries, which makes the airport a source of traffic built-inincluding airport personnel, pilots and airport staff, among others.

On the opposite side from the terminal is Florida Atlantic University, a institution with a total number of more than thirty thousand students. In addition to the students prospective customers, but the university is also a fantastic resource for employees.

Of course, a fantastic location is not without a price. “It was pricey,” Samir says, “but you get what you get for your money. “Cheap” is never a good idea. When real estate isn’t expensive there’s a reason. I ran a number of calculations and due diligence and came to the conclusion that in the long term, the cost is worth the cost.

“If you have the money take it on,” he continues. “Don’t think you’ll be able to make a restaurant where people will drive a long distance for. It’s not a business sense. You must spend more money on advertising, and you must invest more in building your customer base… then then you dig deeper into a hole which is difficult to climb through.”

4. Concentrate on accessibility and visibility.

There are people who won’t visit a restaurant merely because they need to take a U-turn when they are at a light. Other people will not go to a restaurant when they must cross traffic. They prefer to go to places that are in their route of travel.

Businesses such as Dunkin Donuts use that premise when they search for locations and decide what is on the “a.m.” or “p.m.” sides of the highway, and make sure that their locations are on the morning drive-time side.

Consider it as if the majority of people will not take pain or discomfort. Choose a location that is close to major arterial roads, and that is easy to access as well as departure… and ample parking.

Consider visibility as well. “You could have the greatest access to the market,” Samir says, “but without visibility, you will not attract customers. You require clear visibility, easily-readable signs… an easy means for your place to promote your company’s image.”

5. Consider carefully whether you should buy or leasing.

Samir leases his home but he doesn’t have the option of purchasing the property because his restaurant is located on airport’s property.

However, “It is better to purchase the home as long as you have the money and if you’re looking at it for the long run,” Samir says. “If you’re planning for a short-term it’s better to lease.”

When you lease , you’ll be able to take all the expenses associated with leasing. Leases usually just require a modest security deposit. Usually, it’s just the cost of one month’s rent. This makes the cost of cash less.

A substantial down payment on commercial mortgages, and since real estate is a capital asset , you won’t be eligible for the same tax benefits. However, real estate tends to appreciate, which means if the time comes to decide on selling your restaurant, you are able to not only sell the restaurant but also the house.

If you’re unsure what to do take a look at the things that McDonald’s does. McDonald’s offers food, but it also operates in the real estate industry It buys the property to build an expansion, constructs the restaurant, then leases it to franchisees.

6. Remember the construction and layout.

Tilted Kilt is a franchise. This means that they wish for the customer experience to be similar across all restaurants which is why they take care of the design.

However, each site is unique, particularly when you’re planning to put your restaurant inside an existing structure — this means that you’re not getting the advantages (and hassles) of a build from scratch.

“Experienced architects will work with you in designing an interior that is attractive yet also highly productive,” Samir says. “For example, a well-designed bar layout means that bartenders aren’t required to avoid customers. Similar is the case in the kitchen. A good design will help you to be more productive. For the dining room it is important not to allow guests to believe they’ve entered an uninviting maze where they cannot find the bar or restrooms.”

Samir also realized that bigger doesn’t always mean more efficient. He owns an 8500 square foot house with huge windows as well as an outdoor bar and patio, all located in South Florida — which means his electric bills are “ridiculous.”

Furthermore, “I do great numbers in a restaurant that is large,” Samir says, “but my seats aren’t constantly filled. A restaurant that’s almost always packed and always on the wait creates a sense as being exclusive.” (After all the rock group would prefer to sell out a 5,000-seat theatre rather than sell 5,500 tickets at an arena with 12,000 seats.)

“After reviewing my first year’s earnings,” he continues, “I took the decision to remove around 15 tables and place the tables of billiards in their place. This keeps our guests in the restaurant longerand has also reduced the dining room without reducing the space… It’s very well-designed.”

There’s one more thing to remember about construction and leasing. “Get an attorney who is experienced in contract negotiations and lease negotiations,” Samir says. “If you don’t and you don’t know what you’re doingyour landlord could take you to the ground.”