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Editor’s Note: This is the third edition of a new regular column on www.elrestaurante.com. Pepe Stepensky, a veteran restaurateur and a long-time member of the el Restaurante Advisory Panel, is offering his advice to any el Restaurante reader with a question. When he does not have a specific question to answer, he will write about the steps to opening and running a restaurant. Click here to email him a question.
Location, location, location!!!
The location of a restaurant is undoubtedly one of the most important factors for the success or failure of a gastronomic business. Choosing a good location can attract a large number of customers, while an inappropriate location can lead to the closure of the restaurant in a short time.
The issue of location involves two major themes: First, the suitability of the actual physical location for your restaurant; and second, the geographic location and how that relates to attracting customers.
The Physical Location
To begin with, make sure that the premises are approved for a restaurant and for the sale of alcoholic beverages. Make sure that the approval of licenses in your area is not saturated, especially if the sale of alcoholic beverages is decisive for your concept and its success.
The property owner must demonstrate to you that they comply with all Department of Health, Public Safety, and Fire Department regulations, as well as handicapped regulations.
All these questions must be asked and answered to ensure that all these possible expenses or legal situations will not affect your opening budget.
Other considerations regarding the physical plant are that the infrastructure of the place, such as the plumbing, is adequate for the requirements of both the use of gas and water. The number of restrooms is important for the number of patrons the venue can handle at one time and for alcohol laws.
Make sure there is access at the back of the premises for food and utility deliveries and that there is an underground grease receptacle.
Many commercial premises have a maximum customer capacity; make sure you know that number beforehand and know if it is convenient for your plans.
All these factors are decisive for the decision to take a commercial space and paying for them can be very expensive and must be negotiated with the owner of the premises beforehand.
Geographic Location
Next, consider the geographical aspect of the location. Naturally, if the restaurant is on a busy street or in an area with heavy traffic, it is more likely to attract potential customers. But don’t overlook parking – busy streets sometimes lack convenient parking, so if that’s the case, make sure there is a parking lot nearby.
Another important factor is accessibility. If the restaurant is in an area that is difficult to access or away from major transportation routes, it is less likely to attract a large number of customers, and you may even have trouble hiring employees. On the other hand , if the restaurant is located near a metro station, bus stop or in an easily accessible area, it is more likely to attract customers who are passing through or looking for a place to eat quickly.
Often locations in shopping centers are good, because of the traffic drawn by an anchor store or supermarket. Your potential customers might stop in on impulse, and they may recommend your restaurant to other shoppers.
Competition is also a factor to consider when choosing a restaurant location. On one hand, if there are many similar restaurants in the area, the business is less likely to succeed. On the other hand, competition can help the flow of customers in the area, especially if the other restaurants are a different concept. That’s why food courts are often good locations – lots of people show up.
Lastly, security is another important factor when choosing a restaurant location. If the restaurant is in a dangerous or unsafe area, customers are less likely to feel comfortable eating there. On the other hand, if the restaurant is in a safe and quiet area, customers are more likely to feel comfortable and return.
Naturally, the choice of location can also affect restaurant costs. Rents are generally higher in commercial and tourist areas, which can increase the restaurant's operating costs. However, a good location can also mean higher income and profitability in the long run.
In conclusion: When choosing a location, it is important to consider visibility, accessibility, competition and security. If the right choice is made, the restaurant can attract a large number of customers and be successful in the long run.
Remember, Pepe wants questions! Fire away: Click here to email him a question.
Pepe Stepensky has 35 years of experience as a restaurant owner. He also is a published author and a three-time Emmy winner as a documentary producer and director. He and his wife Deborah own five fast casual restaurants in San Diego, CA. Click here to email him a question.