Tom’s Restaurant in Manhattan was made internationally famous by Seinfeld
When a restaurateur has a successful restaurant, they typically want to open up another one. Often times, the owner sets up a new restaurant similar to the previous restaurant. Many times, the new restaurant has a similar type of food, atmosphere, and price range. She may also place it in a similar type of location like in a shopping center.
One of the things that the owner may overlook is the success of the actual location and surrounding populations demographics and psychographics. Here are some things to do some research on when looking at new locations for new locations.
- Get a clear understanding of the trade area: This is the geography that a typical customer will travel to come to your restaurant. Most neighborhood restaurants draw customers from a one to five mile radius of the site. However, unique concepts could draw from much further.
- Match demographics and psychographics to the concept: Make sure that the trade area population can support the restaurant, financially and psychologically.
- Location, location, location: This is always true regardless if you are setting up a new restaurant or buying a home. For a restaurant, being near a strong residential population, a strong retail area with lots of traffic, and strong traffic generators such as movie theaters, hospitals, or a tourist attraction.
Unless you have a very unique concept, the success of most restaurants are heavily determined on its location and the daytime and residential population of the trade area.
–J. Nolfo helps companies understand their market and customers though a variety of market research strategies. He has over ten years of experience of market research for strategic planning purposes. He is the Director of Research at Rhino Market Research. He shares his thoughts about market research and business concepts with his blog “Pensare…Understanding Market Research in Business“. If you would like to discuss this blog or how J. can help you understand your market and customer needs, email him at firstname.lastname@example.org.