A lot of people want to start and run an enviable restaurant. The most important thing is of course "successful." (Check the interview I did of Tyson Cole for more on the process of opening a successful restaurant.) In most cases, the path to success in business begins with choosing the best place to open their restaurant.
Evidently, it\'s not easy but, every year, many restaurants go under.
However, some don\'t even qualify for restaurant owners who are just beginning their careerswhich is why I spoke to Samir Changela about why the location he chose of the Tilted Kilt Pub & Eatery franchise in Boca Raton, Florida.
Before opening the restaurant, Samir ran a successful practice in pedorthics (pedorthics is the creation manufacturing, fabrication, and modification of prosthetics and footwear.) When the changing healthcare sector impacted his business, Samir decided to move in an entirely different direction. So if you want to open a restaurant in a new place, you\'d better have a look at the real place and restaurants. For example, if you want to open a restaurant in Turkey, you can visit yummyadvisor for the informations of your competitors.
"In university," Samir says, "I had been chef, bartender as well as a server. I am a fan of craft beers, food wine, and craft beer... therefore, when my wife took me to the Tilted Kilt in Chicago, and the owner of the place told that he loved his work... I thought I would like to work in the same space."
It took him three years to locate the ideal location.
Samir\'s tips to find the perfect place for your restaurant\'s opening.
1. Be aware of the wider picture and look deep into psychographics.
Demographics are definitely important. Factors such as the average income, age and family size and more. in a certain radius definitely matter. The information is based upon census data, and some of it is usually outdated.
Additionally, if you focus exclusively on demographics, you could not be able to exclude those who don\'t meet your demographics, but could nevertheless be customers.
It is known that the Tilted Kilt demographic, for instance, is dominated by males which makes it a significant area of marketing However, a substantial amount of women patronize the store on Happy Hours.
"That\'s where psychographics are useful," Samir says. "You have to understand what your customer thinks. Demographics can tell you a lot about the person you want to target Psychographics reveals information about the "\'why.\'"
"For instance," he continues, "women visit our restaurant due to the fact that we serve delicious food. While they may initially visit for the atmosphere but they return for good food."
Make sure you look past your target demographic. Who will be your guests? Meet with people from the community. Find out what others consider your brand and your idea.
It\'s not possible to get this information from the census.
2. Do not settle for the standard radius.
The usual method to establish the base area of trade is drawing a circular outline around the location , based on assumptions about different behavioral aspects. In the case of Samir he decided to go with the 20-minute drive radius.
"I do not think that people will travel any further," Samir says. "Some people will drive a bit to go to the Tilted Kilt, but not the majority. Many people come to us because we\'re located near their workplace or their home. The convenience factor is important."
This doesn\'t mean that people who aren\'t within this radius will not visit the restaurant. It is, however, that they\'ll visit less frequently than people who live within the same radius. (And do not overestimate the frequency In general terms, "much less often than you imagine" will be an excellent benchmark to adhere to.)
Also, make sure that you know the customs of people who live in the area. Samir\'s home is located in East Boca; while West Boca is about 15 or 20 minutes miles away, West Boca residents are unlikely to frequent the area. This is also the case for me within Virginia Beach; people who reside near"the "shore side" are less likely to go toward"the "bay side" even though both regions are only 10 minutes apart.
3. Do not make a mistake -- consider "perfect spot" as your ultimate goal.
Samir spent nearly three years searching for the perfect place. He finally settled on the grounds of an airfield that was privately owned . Outside the airport is the biggest movie theater in the area. They sell around 1.6 million tickets each year. This results in built-in traffic.
The location is located parallel to Interstate 95 which has access to the highway, meaning that driers are able to see his sign. Around 240,000 vehicles pass through every on a weekday. The exit is just 1 few minutes away.
The airport itself is also a source of the traffic since a large number of luxury clients utilize the airport. Tilted Kilt targets men with six-figure salaries, which makes the airport an additional source of traffic that is built-inincluding airport personnel, pilots and airport staff, among others.
On the opposite side that the airport lies Florida Atlantic University, a college that has a total enrollment of more than thirty thousand students. The students are not the only prospective customers, but the university is also a fantastic resource for employees.
Of course, a beautiful place comes with a cost. "It was pricey," Samir says, "but you get what you get for your money. "Cheap" is never a good idea. If real estate is priced at a bargain there\'s a reason. I ran a number of due diligence and projections and concluded that in the long term, the cost would be worth it.
"If you have the money take it on," he continues. "Don\'t believe that you\'ll develop a place that people travel to in order to go to. It\'s not a business sense. You must invest more in advertising, and you must invest more in building your customer base... then eventually you dig deeper into a hole that\'s difficult to get through."
4. Concentrate on accessibility and visibility.
Certain people will not go to a restaurant just because they must take a U-turn when they are at a light. Some people won\'t even go to a restaurant when they must cross traffic. They would like to explore places in their route of travel.
Businesses such as Dunkin Donuts use that premise when they search for locations and decide which is the "a.m." as well as the "p.m." sides of the highway, and make sure their locations are located on the morning drive-time side.
You should enter it with the assumption that the majority of people will not take pain or discomfort. Choose a location that is close to major arterial roads, and that is easy to access as well as departure... and ample parking.
Consider visibility as well. "You may have the most access in the world," Samir says, "but without visibility, you\'ll never attract customers. It is essential to have high visibility, easily visible signs... is a natural method for your business to promote your company\'s image."
5. Consider carefully whether you should buy or leasing.
Samir leases his home but he doesn\'t have the option of purchasing it since his restaurant is located on airport\'s property.
However, "It is better to purchase the property as long as you have the money and you\'re planning to use it for the long-term," Samir says. "If you\'re looking at short-term then you\'re better off renting."
When you lease , you\'ll be able to take all the expenses associated with leasing. Leases usually only require a minimal security deposit. Usually, it\'s just the cost of one month\'s rent. The cash cost is less.
A substantial down payment to secure commercial mortgages, and since real estate is a capital asset , you won\'t be eligible for the same tax benefits. But, real estate is prone to appreciate. If it becomes necessary to dispose of your restaurant, you are able to not only transfer the business, but also the building.
In case you\'re not sure what to do think about the things that McDonald\'s does. McDonald\'s offers food, but it also operates in the real estate industry by purchasing the property to build an expansion, constructs the restaurant, then leases it out to franchisees.
6. Do not forget about the layout and construction.
Tilted Kilt is a franchise. They wish for the customer experience to be similar between restaurants and that\'s why they manage the design.
But, every location differs, especially when you\'re planning to put your restaurant inside an existing building which means that you won\'t enjoy the advantages (and problems) of a build from scratch.
"Experienced architects will work with you in designing an interior that is attractive yet also highly productive," Samir says. "For instance, a great design for bars means that bartenders won\'t have to avoid customers. Similar is the case in the kitchen. A good design can boost productivity. For the dining room the guests shouldn\'t to believe they\'ve entered the maze, and they can\'t locate the bar or restrooms."
Samir has also discovered that bigger does not necessarily mean more efficient. Samir has an area of 8,500 square feet with huge windows as well as an outdoor bar and patio located in South Florida -- which means his electric bills are "ridiculous."
Additionally, "I do great numbers at a big restaurant," Samir says, "but my seats aren\'t constantly filled. A restaurant that is always packed and always on the wait provides the patron with a feeling as being exclusive." (After all an act of rock would prefer to sell out a 5,000-seat theatre instead of selling 5,500 tickets in an arena that seats 12,000 people.)
"After reviewing my first year\'s earnings," he continues, "I decided to get rid of approximately 15 tables and install the tables of billiards in their place. This keeps our guests in the restaurant longerand has also reduced the dining room without reducing the space... It\'s been extremely successful."
One last note about construction and leasing. "Get an experienced attorney to handle negotiation of leases and contracts," Samir says. "If you don\'t and you don\'t know what you\'re doingthe landlord is going to devour you."
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