How to pick a restaurant location
A plain checklist for choosing where to open
Picking a spot is the biggest decision you make before you open. The rent is the same whether the room is full or empty, so a location that does not fit your concept is hard to fix later. This checklist keeps the first look simple and based on facts.
1. Who lives nearby
Start with the people within a short trip of the door. How many are there, how old are they, and what do households earn? A family place and a late-night bar want different neighbors. The Census Bureau publishes this for every neighborhood in the country, and an AIsitefilter report puts it in front of you for the exact area you mark.
2. Who works nearby
Lunch and happy hour come from workers as much as from residents. A spot with few homes but thousands of jobs can do very well at midday. Look at jobs located in the area, not only at where people sleep.
3. Who you are up against
Map the restaurants, bars and cafes in the area. A crowded street is not always bad, because customers go where there are choices, but you need a reason to be picked. See how many restaurants is too many.
4. Can people see you and reach you
- Visibility. Can a passing driver or walker see the sign?
- Access. Is it easy to turn in, and easy to leave?
- Parking. Is there enough for your busiest hour, and is it free for your guests?
- Neighbors. Do the businesses around you bring people at the hours you need?
5. What it will cost you
Rent is only part of it. Ask about common area charges, taxes, insurance, and the cost of building the space out for a kitchen. See the lease checklist before you sign anything.
6. Go see it
Data can miss what you can see in person. Visit at lunch, at dinner and on a weekend. Count the people who walk by. Eat at the places nearby. Talk to the owners if they will talk.
Mark your area on a map and get who lives and works nearby, the competition, and our Pin Score.
Check a restaurant spot Check a bar & grill spot
More guides
- What is a trade area?
- How many restaurants is too many?
- What to check before you sign a restaurant lease
Sources
- SBA: Market research and competitive analysis
- U.S. Census Bureau: American Community Survey
- U.S. Census Bureau: LEHD data (LODES)
This guide is general information, not legal or financial advice. Every location is different, so check the details yourself before you sign anything.