It’s Time to Rethink Restaurant Real Estate

Your restaurant business is just booming. There’s not even enough room in your dining area for customers, and every day your brand is increasingly becoming popular. You are very excited because, of course, the more the customers, the more the revenue and you know that. You are now planning how you are going to open another branch to expand the business.

You have saved enough cash to open a new restaurant, and you are ready to do that soonest possible. If that is typically you, ask yourself this question: where? Seeing location you think can be good for your business is easy, acquiring that space or even renting it isn’t a walk in the park mainly if you are in a big city like New York. Note that platforms like make it easier for investors to find and showcase their properties. 

Decisions on where to locate a restaurant are sophisticated and shouldn’t be made in a rush as this can cost you. Before you decide where you want your next branch to be, you have to research thoroughly. Restaurants are of different types, and so are their space requirements. Balancing your restaurant idea with the available real estate is vital. The best way to know where to locate your second, third etc. restaurant is by gathering information.

Choosing your New Location Based on the Information you Have

What type of restaurant do you want to open? What idea are you focusing on? Most people will open imitation of their first restaurant. However, your original model may not be as profitable as it is in a new location. For instance, your current sit-in restaurant is flourishing, but your new site may boom with a restaurant that only offers deliveries.

What you know about the business and broad industry data are the two data types you need to decide the best kind of restaurant for your new site.

Utilize Your Business Analysis

Before you opened your first restaurant, you drew a business plan which you have kept safely in a cabinet somewhere. Could be you have added a thorough industry analysis. Things change, and some of the findings you had back then may not be relevant anymore. But those findings will refine your conclusions.

Some of the particular analysis elements that can assist you to discover opportunities in your new site are:

a) Tech Trends Affecting the Restaurant Industry

Making informed decisions is essential before you decide to venture in any business. Been aware of the current technological trends affecting the restaurant businesses will enable you to open a business that suits the customers changing needs. In this way, you will remain relevant and as a result, generate a lot of revenue. For instance, restaurants are now adopting customer-facing POS systems which helps reduce the number of space and staff you need. Such trends help you rent smaller spaces saving you money.

b) Competition in the Industry

You do not intend to mimic competitors you identified in your first analysis but tracing how they have expanded their business can help you realize opportunities. Are your competitors having several branches and where? Knowing when they opened branches can help you discover patterns.

d) Demographic Trends

In your first research on target consumers, you came up with several assumptions. Now that you have customers do analysis and draw conclusions on your next location. Refine your initial findings by looking at their economic status, gender, age etc. note new patterns. Then think about the needs of your clients.

e) Projected Sales

You can know a lot by observing restaurant trends. For instance, in the recent past, the number of fast-casual locations has been in the rise. With this, you can decide that your second branch is going to be a fast-casual.

Analyze the Performance of your Restaurant

If you are managing a restaurant, you need to monitor several performance metrics regularly as they can be significant indicators for new branches. Identify the following using your business analytics.


a) Seat Turnover Rate


How long do your customers sit at your restaurant? Getting answers to this question will help you know whether to open a fine dining or fast-casual restaurant.

b) What Time is Busiest in a Day?

When do you receive most customers? Is it during dinner, lunch or breakfast? This information will help you know what to major in, whether serving dinner, lunch or breakfast.

d) Most Profitable Food Item

Most restaurants are offering a minimal menu to ensure they offer excellent quality food to their customers. Identify the item that is giving you huge revenues. Maybe your new branch needs to focus on providing that item.

Now it’s time to look for space. Consider vicinity, traffic, accessibility, visibility, property condition and affordability. Then once you acquire the area, test your idea by having a pop-up restaurant before you go in fully.


Now you are of what you need to do when rethinking restaurant real estate. With the tips given in this article, the process will be easier, and you will be able to open a new branch soonest.