Site Selection Basics

This is a though one, It feels like you have to be a medieval alchemist transforming lead into gold. I have done feasibility studies based on income brackets, pedestrian and vehicle traffic, whether or not it is a suburban or industrial area and many other factors when assessing a possible site:

• Is it a seasonal site with little to no foot fall during the off season and massive customer density during the peak season? Better prepare yourself for long periods of lethargy and then the short seasonal grind with inpatient fathers and little Johnny that uses your restaurant as a jungle gym. You will also have to plan and save for the leaner periods and reduce your staff compliment to reduce that wage bill.

• Perhaps you opted for a middle class suburban area where both parents are working and there will be little action during the day and lots of it after the daily slog.

  (Better rush those orders and insure that you have friendly staff or you going to get an irritated dad ripping you a new one)

  
• Chose a business area where folks work from nine to five then prepare for early breakfast rushes and busy lunches and clients that are in a bit of a rush since the clock watching human resources department are chomping at the bits to issue warnings and deduct time.

As you can see from the above scenarios there are many factors and considerations that you have to consider. Think on it carefully and play it through in your mind carefully. Just remember there is no sure thing!

Site Selection Alchemy

As I mentioned there is no sure thing, you can however reduce risks and at least electroplate that cast iron with some gold by investigating, researching and doing a feasibility study on the area you are considering for your restaurant. If you have decided on a franchised restaurant then the franchiser should be able to assist you with this process.

I said the franchiser should be able to! You must still use your G.G.I (God Given Intelligence) and do some of your own homework on the location you are considering, there are some dodgy franchisers out there that will tell you a site is good just because it is located in a mall.

The following aspects should be considered:

Lease Agreement: How much and how long? Is the landlord willing to contribute allowances towards: ceilings tiling and shop fronts etc.

Tip! Do not sign the first draft agreement. Whatever is put on the table, offer less ! If Rent per square meter is offered at $20, offer $15. Escalation of 8 % per year, offer 6%. They want you to pay for a parking spot, tell them you use a car pool.

• Foot traffic and vehicle traffic: If there is little or no foot and vehicle traffic you will have to entice your clients to your door. Selecting a site with high traffic will make it a bit easier.
• Visibility: You want to be visible from as many angles as possible with signage that is visible from the moon. Sitting behind an overgrown bush or high wall will dilute the benefits of being in a high foot or vehicle traffic area.
• Parking and Accessibility: Your customers are going to need somewhere to park if it is a sit down restaurant. If you decided on a take away restaurant parking will be less of a concern but make sure you have at least some parking for your clients if you are not in a mall. One way streets, median barriers or regular traffic jams leading into your area are also aspects to consider, people are by nature a bit lazy, I include myself here and I would not consider a u - turn in peak traffic to go around a median barrier to get a burger if I could get a similar burger at a similar price without doing the admin of the u - turn.
• 
  Competitors: The more the merrier. You don’t want to be the lone hermit on the hill. People go where there are other people and a buzz about. What are they selling and how much are they charging? I have found that a specific brand of beer costs about the same in a neighborhood but step out of that neighborhood and it is possible that there is a significant price difference. Make sure you know the going rate in your area in order not to over or under price yourself.
• Location: Business area or a suburb? This will help you to determine your opening and closing times as well as when your rush (rush = restaurant terminology for busy) periods are going to be.
• Demographics: Population density, house hold income brackets and sizes, industrial or other. Opening a high end bistro in a low income bracket neighborhood or heavy industrial area will certainly result in a long walk of a short pier since nobody will be able afford your fine French cuisine and frogs legs will definitely not satiate a construction worker that needs a lot of calories to keep going.
• Complimentary businesses: Just think of being located in a mall where a bunch of housewives shop. Having a coffee shop where they can have a scone topped with home made strawberry jam, hand churned cream and a skinny decaf late will be advantages to the restaurateur.

Those are the basic, basics, hang around the area you are intending to open and get a good feel for the rhythm of the area. Talking to other business owners in the area is also a good idea, they will have insight into the ebbs and flows of the area that you will only discover after trading for years.