How to Choose a Location for your New Bar, Restaurant or Café Venue
You’ve got a great idea for a new hospitality concept but how should you go about choosing a site or venue for it?
In this article I'll be sharing six key considerations to be aware of when you're looking at different locations.
Location is a hugely important factor in determining the success of your venue. The right concept needs the right location in order to work, so it’s a decision that requires a lot of research and consideration.
1. Target Market
The first thing you need to think about is the target market and the customers that are in the location you are looking at.
If you’ve already started to develop your concept and considering who your target audience is, then you need to ensure that those people live in or visit the location you are researching.
If you’re doing things the other way around and considering a location first then you need to learn about the potential customers in that area and then ensure you create a concept that will serve those peoples needs.
Spend time researching online and gathering information on the local demographics, but also spend loads of time in that location, visit other hospitality venues, see who is visiting those outlets and why they're visiting them. Ensure you spend time there at different points during the week and at different times of day so you can understand the patterns of customers and are able to confirm there is an audience for your concept in that area.
2. Accessibility
The second thing that you need to consider is accessibility. How accessible is this location? Are there plenty of people living or working within walking distance? If not, and people have to travel to get there, how do they get there? What transport is available and what parking is available?
You need to ensure the location is convenient and easily accessed. If your concept will rely on foot traffic this will determine the type of venue you will need. If you are creating a destination concept then you must make sure it is easy for enough people to get to your site and that there’s sufficient parking.
3. Affordability
The third thing you need to think about is affordability. How affordable are the rents for venues in this location?
Ideally your rent needs to be in the range of 5% to 8% of your gross revenue in order for your numbers to work and for you to be able to make a healthy profit.
Areas with the most visibility and the most foot traffic will likely have the highest rents and locations with less foot traffic or other disadvantages will have lower rents. You need to find the right balance for your concept and consider the likely revenue projections to assess the affordability in each case.
Always look to negotiate on your rent and use any disadvantages a venue may have to push for a lower price, once you are locked in you will hardly ever manage to bring your rent down so get the best price you can from the outset.
4.Competition
You must consider the other competition in the area. What other venues exist in this location? Are there other outlets with similar concepts to what you plan to create? If so, are you going to be able to offer something that's unique and different in order to attract customers to your venue instead? Can your concept offer something complementary to the area, increasing the options for customers and enhancing the attractiveness of that place as an area to dine out?
If a location has a healthy thriving hospitality scene that's a good thing and a great sign its an area worth considering, however if the market there is saturated, for instance some of those existing venues are struggling for customers, or there is no gap in the market for the type of offer you plan to create then looking elsewhere would be a better idea.
5. Licenses & Consents
You need to consider the licenses and permits that you will need to open your venue, such as a liquor license, building consents or an outdoor dining licence.
Once you know what licences you will require you should research both your area and any specific venues you consider to ensure that you're going to be able to open the type of concept you’re planning in that location and be aware of any restrictions or risks that might stop you from getting the licences and permits you’ll need. Contact your local council and talk to experts and specialists to do your due diligence on this.
6. Interior and Exterior Space
The sixth key aspect you should consider, once you've decided on a wider location and you're looking at specific venues, is to think about the interior and exterior spaces of that venue and whether those are suitable for the concept that you're planning to create.
You should analyze the shape and size of the space and consider what potential layout will work . Look into where you can locate the kitchen, the bar, and the bathrooms, understanding where services are located and what is or isn’t available in terms of power supply, internet connection, drainage, extraction and a grease trap. Where any of these need to be installed or upgraded there will be fairly significant costs involved so you will need to take these into account when considering each space.
If there's n outdoor area then consider how it is orientated, when and how much sunlight it gets. Also think about the natural light within the space and the views in and out.
All these considerations should come into your decision on the specific venue. At this point is a really time to get your designer on board before you sign a lease, get some initial plans and designs drawn up to ensure the space is going to work well for your concept and ideas.
If you know things like how many seats you can accommodate, how big a kitchen you can include, how many bathrooms you require and what services you will need, you can make a well informed decision on that venue and ensure it's the right space for you before you commit.
Choosing the right location and venue for your concept or the right concept for your location is key. Considering these 6 elements in detail will help you to you choose the perfect venue and create something which to local market will love.
I hope this has been helpful. If you’re planning a new project and you’d like to have a chat about concept development or design services please get in touch or book a free discovery call using the button below.
Have a fab day!