The restaurant industry can be brutal, especially to first-time entrepreneurs. Additionally, several factors are responsible for the success of a restaurant-the quality of service, the marketing strategy employed, the quality of food, the existing competition, to mention a few. However, the one factor that makes some restaurants thrive and others fail is the location in which they are situated. Keep reading as we explore the factors to look out for in your prospective restaurant locations to ensure that your restaurant business has a fighting chance in the cut-throat restaurant industry.
1. Areas That Have a Large Number of Existing Restaurants
As part of your field research, pay close attention to how many restaurants there are in that area. This is because the number of thriving restaurants (aka the existing competition) will affect your restaurant’s success (or lack thereof). A great place to begin would be to consider the number of niche restaurants. If you’re looking to start an East African -inspired restaurant in the Seattle area, for instance, consider how many others already exist in that area.
2. Areas With High Restaurant Sales
The area residents’ average annual income is important information to consider because this tends to show you how much disposable income the people in that area have, and by extension, how much they could spend on recreational habits such as eating out. An area with an annual median income of $50,000 and above is a great indicator that the area residents have the financial capacity to eat out.
A recent study found the average income in Lake Washington, Bellevue, to be over $100,000. This makes Bellevue a great location to set up a restaurant because its residents have enough cash to spend on restaurants and eating out.
3. Areas With Restaurant Supply Stores
Locations with several restaurant supply stores in the area are a great place to launch your restaurant business as sourcing restaurant equipment will be stress-free. The Seattle area is rich with various restaurant supply stores because the restaurant business is booming in the area. The Restaurant Warehouse, for instance, is a Seattle restaurant store that specializes in selling both used and new restaurant supplies in Seattle.
Their commercial restaurant equipment includes commercial refrigerators, kitchen small wares such as dinnerware and glassware, pots, and pans-to mention a few, all at low prices. Their low prices are based on the fact that they do not use any middlemen or third parties to sell their products. In this way, the commission percentage that would typically be paid out to salespeople is unnecessary, which helps keep their prices low and fair. They also offer financing options on their restaurant equipment should you need financial help. The Restaurant Warehouse is also trusted for the quality restaurant equipment brands that they stock. Since any restaurant worth a visit is only as effective as its supplies, businesses need to invest in the right tools, appliances, and kitchenware. Otherwise, you run the risk of being outclassed by the competition.
4. Areas With Employable Restaurant Workers
A restaurant’s success rate is also largely influenced by the availability of workers in the area. Setting up shop in the city of Seattle, for instance, can be beneficial to your business because the availability of restaurant workers in the area is high. As a result, staffing your restaurant business will be a lot easier because labor is easily available. On the other hand, restaurants that open in areas with few readily available trained restaurant professionals tend to have a harder time with the staffing due to a lack of readily available labor. This may affect service delivery and discourage return customers.