How to select the right Geographical location for your restaurant?


A good geographical location can do wonders for your newly opened restaurant. For instance, think about the entire footfall that a particular location in the center of the shopping arcade will bring to your casual dining restaurant which is directly opposite the largest university in town. Well, this is just one example of what could be a prime location of a new restaurant. Any location is perfect for your restaurant business which will suit your brand image and garner appreciation from your target market.

Selecting a geographical location for your restaurant can be a daunting task considering that the success of your restaurant depends on the business you are able to attract, which directly depends on the location of your restaurant.

Hence, deciding the perfect location is a process in which there should not be any hurry! When opening a new restaurant chain certain factors can be kept in mind in regards to the location.

This article will explain all those factors that play an important role in the selection of a particular geographical location.

Analysis of Supply and Demand

To come up with the most suitable location for your restaurant, analyze your choice of places for factors like the demographics and psychographics of the population,  real-estate prices, income level of the people living in the vicinity, and how this matches your restaurant businesses’ value proposition. You definitely want to set up your food business in a place where there is a demand for food your restaurant sells and the competition is low.

Format Selection

Your selected type of restaurant business will impact your choice of location for your restaurant chain. For eg, if you choose to set-up a 24-hour cafe, then you would want it near a place where your clientele is available for all 24 hours, this could be near an airport or hospital. A fast-food chain is suitable in a location where a lot of the young population can visit easily whereas a casual dining restaurant can be opened in a commercial or residential area where families and working professionals can visit.


Do in-depth research about the characteristics of your customers. Know their age, gender, preferences, and income level. Defining your target market in detail will directly impact the choice of your restaurant location as well. The more you know your customers, the easier it is to position your restaurant’s offering and select the right geographical location


How convenient is it for your target customers to visit your restaurant site whenever they wish to have their favorite food? When it comes to having a meal they have been waiting for, people are usually not very good at mapping and following instructions to reach where the restaurant is situated. So, make sure that your restaurant is clearly visible to your target audience.

Competitor Analysis

Competitor Analysis is another necessary step to consider while planning to open your restaurant chain in a particular location. You will have to analyze who all are your competitors there and what are they doing in terms of marketing and operations to retain their customers. Any outlet that is serving food to the local clientele would be considered your competition. It is highly recommended to study your environment in detail before finalizing any kind of operations. Remaining aware of the threats and opportunities for your business is an important step in your restaurant’s success.


A good amount of footfall coming to your restaurant in a particular location can become the sole reason for it’s success. If you are planning to open a café, then the maximum amount of traffic you will receive from a location which is easily accessible to students and youngsters. While for casual dining restaurants, any place that attracts a huge number of groups or families will generate maximum traffic. This could be a tourist spot, shopping mall, or even a highway stop.


According to the restaurant type, the space required to set up your operations would vary.  This would include a proper seating area if you have a full-service restaurant and a parking space for your customers. While deciding on a location, look out if that kind of space is available or not. For small establishments, a relatively small area would suffice but make sure it is not too clustered.


Research the area in your surroundings thoroughly. You should select a location that has access to good transportation facilities so your customers can easily reach you. Consider your restaurant is situated in a place that is not clean, hygienic, or pleasing. This could be a major disappointment for the visitors and affect your restaurant’s brand image negatively.

Customer Bases

Certain places provide you with an existing clientele that could increase your restaurant’s footfall and thus increasing your business. These ideal locations could turn out to be a gold mine for your business. Such locations include places ranging from a city center bustling with people to shopping malls, hospitals, schools, and colleges.

Leasing/Renting options

The affordability of your selected location is an important criterion. The property rates available to take on lease or buying should be monitored. Always do proper research before making a decision. You should know how the prices of the property would affect the overall profitability of your restaurant business. For some food businesses, leasing would be a suitable option. For others, Leasing would look like a better one.


These factors will help you find the best location for your new restaurant chain.  Carry out primary research by making site visits, talking to people in the neighborhood, etc. Secondary research can be done by online means before you jump to any conclusion. Do not forget that the location of your restaurant is like that piece of the puzzle without which the successful setting up of your restaurant would be incomplete. So take as much time you need to figure out what works for your business and what doesn’t. In the end, it will all be worth it.

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