What to Consider When Choosing a Restaurant Location

Kitchen Location & Design Consulting

When opening a restaurant, choosing the right location is everything. It can mean the difference between a thriving eatery with long lines and fully booked tables, and a deserted, desolate dining space that may eventually have to close. 

Location, location, location! Finding the perfect spot for YOUR restaurant is key. There’s no one-size-fits-all solution—just the right fit for your unique concept. Consider what makes sense for your vision, and you’re one step closer to success! 

Demographic and Target Market 

The make-or-break factor for your location is whether it serves your target market (or not). By analyzing factors such as age, income, lifestyle, occupation, and more, you can identify clear patterns in the places they regularly visit. 

Ideally, you’ll choose a location near these places. Or, at least, it should be located in a place your target market would like or be willing to visit. Additionally, the venue should align with your target market’s tastes and aesthetic preferences. 

Is it near major attractions? Is it close to similar establishments (for example, a health-focused restaurant near a gym)? These are the types of questions you’ll want to ask yourself when considering locations. 

Accessibility & Visibility 

Next, prime real estate should be easy to access. That means patrons shouldn’t experience issues reaching your restaurant by car, foot, or public transportation. Restaurant locations benefit from maximum visibility on main streets, not hidden by trees or buildings. 

Parking Availability 

Whether your location is in the city or a suburban region, opt for a space with adequate parking or within walking distance to the parking lot. This provides convenient access for customers with various vehicle sizes, which can also motivate return visits. 

Competitive Analysis 

Choose your restaurant location wisely to avoid excessive competition. For instance, if you're opening a fusion cuisine spot, steer clear of areas crowded with established restaurants offering similar menus. This will give your business a stronger chance to stand out and thrive. Note, you may be less affected if opening a new location under a well-known chain. 

Site Suitability and Infrastructure 

Your chosen location should strike the perfect balance between accessibility, convenience, modern appeal, and practicality. If you choose a pre-existing structure, the building should meet building standards regarding integrity, electrical wiring, and plumbing to avoid safety violations and costly repairs. It should also have adequate seating capacity, storage space, an appropriate kitchen setup, and suitable space that enhances customer flow. 

Ensure the site adheres to zoning bylaws and regulations. Review health codes, licenses, permits, and other legal requirements to confirm full compliance and avoid potential violations.

Safety and Reputation

Lastly, check the safety record of your soon-to-be restaurant location. Research the site’s history to see if accidents or conditions led to frequent tenant turnover or previous business failures. Look into the landlord too—you don’t want to deal with a difficult one. 

Also, inspect the location with your own eyes and ears. If you notice anything that seems off, note it and report it. Make sure it’s something that can be fixed, and then resolve it. 

Your Restaurant Location Checklist 

1. Demographics & Target Market

• Define customer profiles (age, income, lifestyle, habits)
• Ensure local population matches your target market

2. Accessibility & Visibility

• Location is easy to reach by car, foot, or public transport  
• High visibility from main streets or busy areas  
• Prominent signage if tucked away  

3. Parking Availability

• Adequate parking spaces for maximum occupancy  
• Can accommodate various vehicle sizes  

4. Competitive Analysis

• Identify similar restaurants nearby
• Determine if differentiation is possible or if clustering is beneficials  

5. Market Conditions

• Assess economic stability and local growth potential  
• Observe foot traffic and nearby attractions  
• Avoid saturated markets unless you have a unique edge 

6. Site Suitability & Infrastructure

• Sound structure, plumbing, and electrical systems  
• Adequate space for kitchen, storage, seating, and customer flow  
• Access to utilities (water, gas, electricity, sewer)  

7. Zoning & Regulations

• Confirm zoning allows commercial food service  
• Check health, safety, and business compliance requirements 

8. Safety & Reputation

• Research crime statistics and local safety record  
• Investigate site history (e.g., frequent business turnover)  
• Ensure responsible and fair landlord practices