The Secrets of A Successful Restaurant: Location, Location, Location

Two women eating in a restaurant

Contrary to the myth, restaurants do not have a failure rate of 90% in their first year, but only 17% which is relatively low when compared to other service-based businesses which are at 19% on the average. However, one should always try to gain as much advantage and reduce the risks of failure when opening their restaurant. Food quality is a huge factor in a restaurant’s success, but the fact that you’re willing to invest a lot of money to put up a restaurant must mean that you’re confident about your (or your chef’s) cooking. As such, we’ll have to take a look at the next most important factor: location.

Ray Kroc himself, the CEO of McDonald’s, said that their main business isn’t food but real estate. Yes, they offer food, but most of all, they focus on capitalizing in lucrative locations and properties that have good foot traffic, and in a well-populated area. That said, let’s take a look at things you’d want to consider when choosing the location of your restaurant business:

Visibility and Accessibility

No matter how good your food is or how well-designed your restaurant looks like, if it’s in a location that’s difficult to see or hard to access, then it’s all for naught. If you’re starting up your brand and business, and you don’t have an edge that would make your customers want to seek you out such as a having (or being) a well-known chef or serving unique cuisines, you’re better off choosing a location that can easily be seen and accessed. The bottom line is that if your customers have a hard time finding your restaurant, your restaurant would have a hard time getting customers.


One of the often overlooked factors in choosing a location is parking. However, for those in areas with a lot of vehicles and limited parking space, parking can be a deciding factor. It’s inconvenient for one to park their car and then proceed to walk for minutes to get to the restaurant they want to eat. So when looking for places to set up shop, it’s important to consider the parking space. Additionally, you’d also want to make sure that your parking area is safe and functional to avoid any unwanted accidents or damages to your customer’s vehicles, so make sure to have commercial parking lot paving services take care of any cracks or potholes.

Target Market and Surrounding Establishments

Do your research, and know your market. See what kind of establishments are near your potential locations and determine if they fit your intended market. If you’re planning on a family restaurant, it won’t help to put it in a red light district. Or if you’re aiming for a posh, high-end exclusive restaurant, maybe it’s not a good idea to put it beside a wet market. Additionally, you’d also want to check out any possible competition near the location and make sure that you don’t saturate the market — if you’re a vegan restaurant in an area with 4 or 5 other vegan restaurants that are a stone’s throw away from each other, you might want to consider changing your location or your menu.

Crime Rates

This might as well be self-explanatory. You wouldn’t want to set up a quaint family restaurant in a crime-laden area. For one, you’d be putting your customers in danger, and secondly, you might not even have any customers since high crime rates can discourage any potential customers from going near your place either.


Three women enjoying their meal

Indeed, when it comes to restaurants, it’s all about location; it has to be a place that you, yourself, would want to go to, is convenient, and has relatively good traffic. So the next time you’re scouting for a good location, it’s a good idea to keep these factors in mind.

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