How to Choose a Restaurant Location

May 09, 2023

We’ve all heard the saying: “Location, location, location!” Choosing the right location for a new restaurant is crucial to its success.

Here are some factors to consider when choosing a location for your new restaurant:

Demographics: Analyzing the demographic data of the area can provide valuable insights into the type of cuisine that will be popular and the price point that will be acceptable. Look for population, age, income, and education level information to determine the right target audience.

restaurant market research


Analyze your menu: Look at the types of cuisine you offer, and the price points for your dishes. This can help you determine the kind of customer interested in your restaurant.

Conduct market research: This can involve surveys or focus groups with potential customers. Ask questions about their dining preferences, frequency of eating out, and favorite cuisines.

Analyze your competition: Look at the restaurants in your area that offer similar cuisine and price points. This can help you determine what types of customers are attracted to those restaurants.

Analyze demographics of the area: Look at the demographic data of the area where your restaurant is located. This can include information on age, income, education level, and other factors.

Use customer data: Analyze data from your point-of-sale system, including purchase history and customer feedback, to determine who your current customers are and what they like about your restaurant.

Competition: Conducting a competitive analysis of the area can help identify your potential competitors’ strengths and weaknesses. This analysis can help you to find a unique selling point for your restaurant that will help it stand out from the competition.

Visibility: Choose a location visible to potential customers, with easy access and plenty of foot traffic. You want to be in a location easily accessible by car or public transportation, and an area with high foot traffic, such as a busy street or shopping center.

Cost: Consider the cost of the location, including rent, utilities, and other expenses. While it’s essential to find a site that is visible and easily accessible, it’s also vital to ensure that the cost of the location is reasonable and sustainable.

Zoning: Make sure the location is properly zoned for a restaurant.

Zoning refers to the local government regulations that dictate what types of businesses are allowed to operate in specific areas. For restaurants, zoning laws typically regulate factors such as the size of the restaurant, the number of parking spaces required, the types of food that can be served, and the hours of operation.

The specific zoning laws that apply to restaurants can vary depending on the location. Some areas may have specified zones designated for restaurants or commercial businesses. In other areas, restaurants may operate in residential zones if they meet specific requirements.

Consult with local authorities and research the zoning laws in the area to ensure that comply with all regulations.

With these tips in mind, you can better determine the best location for your new venture. If you need professional assistance in finding the best spot for your restaurant, please reach out to Synergy.


More Restaurant Startup Resources

12 Key Tips to Launching a Successful Restaurant

How to Open a Restaurant: 16 Steps to Launch Your Restaurant




Land Use and Zoning Considerations for New and Start-up Restaurants