Owning a restaurant is not for the fainthearted. While the restaurant industry is vibrant, challenges that come with a startup can seem insurmountable. There are numerous reasons why restaurants fail. Inexperience, poor management, and poor food are at the top of the list. However, a 2015 report published on the Entrepreneur indicates that poor location is the major pitfall leading to restaurant failure.
If you are planning to launch a restaurant in any city it’s imperative to understand more about the location. Unlike most other businesses, location plays a critical role due to the need for timely delivery of supplies and accessibility. Below is a quick guide to help you determine the best and worst places to start your business:
General Factors in a Restaurant Location Choice
Before picking just any vacant space, consider whether the area has been zoned for a restaurant business. You should also consider the space available, if it allows for expansion as your restaurant grows. In addition, look for a space that closely fits your layout and design requirements to avoid costly refurbishments.
Check if any repairs are required and more importantly, scrutinize the lease agreement. It is also advisable to look at the existing utilities, amenities, rate of crime, presence of competition, availability of parking spaces, ease of access, as well as availability of public transport.
Best Restaurant Locations
If you are planning to start your restaurant as soon as possible, location is everything. Here are just a few mentions of fantastic places to consider:
- Cedar Park, Texas
- Mission, Texas
- Franklin, Tennessee
- Kahului-Wailuku Lahaina, Hawaii
- Starkville, Mississippi
- Sevierville, Tennessee
- Smyrna, Georgia
- Round Rock, Texas
- Frisco, Texas
- Alpharetta, Georgia
- Milpitas, California
- Southaven, Mississippi
In most of these cities, the economies are strong and the industry is booming. With residential and commercial construction booming in cities such as Southaven, Mississippi, it only follows that real estate space is plentiful and money is available for people to dine out. An increased median income in these locations makes them perfect for a restaurant business, as the middle class loves to eat out.
Worst Cities to Start a Restaurant
However, there are also factors that can mean a poor location . These could include poor local weather, high crime rates which discourage people to eat out, high cost of living, low income and high cost of real estate, as well as lack of a tourist culture.
A 2015 Survey published in Restaurant Business shows that while restaurant growth stagnated at 0.4%, there are areas in which the industry experienced even worse numbers. Los Alamos- N.M., Urbana- Ohio, Sunbury- Pennsylvania, Boone- Iowa and North Vernon- Indiana are some of the worst places to start a business.