Many times we keep hearing the phrase: "location is everything", over and over again.
We hear it so often that many entrepreneurs really believe a central location is all it takes in order to succeed or fail in establishing a new restaurant.
Well let's try and look carefully into this matter before we are making a crucial decision on our new restaurant.
If location is everything, as some are saying, it would be reasonable to think that in New York City for example, all the good and successful restaurants will be in Time Square where, as we all know, there are millions of people passing by every day.
But hey, surprise. Most of New York very successful restaurants are located off the very center of Manhattan, breaking down this theory. In fact, some of the famous restaurant has managed to establish prime locations due to their success.
But hey, surprise. Most of New York very successful restaurants are located off the very center of Manhattan, breaking down this theory. In fact, some of the famous restaurant has managed to establish prime locations due to their success.
If I would need to open a new restaurant tomorrow, I would ask myself the following questions before I'll start looking for a location:
What am I going to sell?
If I'm going to sell fast food concept, yes, I need a high volume location with a lot of traffic at lunch & dinner times. Fast food is all about cheap and fast so numbers are crucial to the business.
If, on the other hand, I would like to open a cozy coffee shop with a romantic atmosphere, a very central location might damage the general feeling I'm trying to create. In this case I will look for a neighborhood area, where I will be able to get to know my clients personally. There is nothing warmer than the question "would you like your regular coffee sir?"
The product we are selling has a great influence on the location.
If I'm going to sell fast food concept, yes, I need a high volume location with a lot of traffic at lunch & dinner times. Fast food is all about cheap and fast so numbers are crucial to the business.
If, on the other hand, I would like to open a cozy coffee shop with a romantic atmosphere, a very central location might damage the general feeling I'm trying to create. In this case I will look for a neighborhood area, where I will be able to get to know my clients personally. There is nothing warmer than the question "would you like your regular coffee sir?"
The product we are selling has a great influence on the location.
Who are my customers?
If my customers are tourists, I will look for a location where most likely I'll find tourists: shopping malls, Museums, harbor areas and other places of interest.
If I'm aiming at young local customers and I'm creating a nice alcohol menu, I would like to be located near clubs, small restaurants area with a lively nightlife around me.
If my customers are tourists, I will look for a location where most likely I'll find tourists: shopping malls, Museums, harbor areas and other places of interest.
If I'm aiming at young local customers and I'm creating a nice alcohol menu, I would like to be located near clubs, small restaurants area with a lively nightlife around me.
How big is my business going to be?
Not how much money I want to make… how big physically. This will influence my initial investment, my rent, my salaries…
location has an influence on the size of the business. We cannot sell 400 burgers at lunch time in a 30 meters kitchen. Technically it is impossible. So we need to make decisions and we need to make them before we pick a location and not after.
Not how much money I want to make… how big physically. This will influence my initial investment, my rent, my salaries…
location has an influence on the size of the business. We cannot sell 400 burgers at lunch time in a 30 meters kitchen. Technically it is impossible. So we need to make decisions and we need to make them before we pick a location and not after.
Please don't get me wrong. I'm not trying to say location is not important. It is important just like anything else in your new restaurant.
Your food is much more important. People will travel an extra mile to a restaurant with great food. Make sure they will have a very good reason to do so. Don't compromise on your food; it's your biggest key to success.
It doesn't always have to be the most eclectic sophisticated food on earth. If it is a sandwich – make it THE best there is. If it is a cup of coffee, make sure no one else make a better coffee than you.
People will appreciate it and will return again and again.
It doesn't always have to be the most eclectic sophisticated food on earth. If it is a sandwich – make it THE best there is. If it is a cup of coffee, make sure no one else make a better coffee than you.
People will appreciate it and will return again and again.