You know that statement “it’s all about location” and “location, location, location” - well that’s a fact. For restaurants especially. And the Rent Price should never be a deciding factor between a busy location or a private quiet block. Of course there are businesses that thrive in quiet off main city block locations, but it is ten times as hard.
A quick glimpse about this article, we have seen excellent run restaurants with unique cuisines, top notch service and great pricing go under in bad locations. While watching okay restaurants with above average pricing and okay service thrive in great locations.
Rent is nearly always subset by the additional exposure. Basic math for comparing pricing and we’ll see how the rent price should be the most minor decision of the business. A mid block somewhat off the strip location goes for $3,500/month and a location right next to a train stop, bus stop on a major block goes for $6,000. The difference is $85/day. If your average ticket for two people take out is $18 with a bout 60% of that being clean revenue. Just 8 tickets more per day makes up for that difference.
Will a location with 5,000 city commuters per day bring you at least 8 extra ticket-sales? Will the location be visible by 1000’s of others curious into seeing what you have bring free exposure at no additional cost? When you virtually break down the price of additional rent to the hours you are open and the times there are passerby’s you will quickly see that a few dollars more per hour may bring dozens of new customers each of those open hours, plus additional exposure.
--------------------
This is not the end all be all. Of course there are plenty of established restaurants in hidden spots and for some types of business it works, especially if it’s a unique well sought after cuisine that could generate a lot of buzz around the neighborhood. But if it’s based on a standard pizza, sandwich or Chinese take out spot, we suggest go for the location.
*CurrentLVL is a complete Web Solution