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Location, Location, Location...

Everyone has heard the expression: “Location, Location, Location”. A restaurant's site selection is as crucial to its success as great food and service. However, many restaurants that open in “great locations”, fail because they don’t adjust their business model to the particularities of that location.  

Choosing a location involves more than picking a place and signing a lease. Your location selection will influence many parts of your business plans and operations. 

It is highly recommended to work with a licensed real estate broker who knows your local market. They will best be able to guide you to appropriate properties, and to negotiate the best possible deal on your behalf; be patient as this process takes time.  If you already have a certain location in mind, you shouldn't become too attached until you know it meets your needs.

Before you create a business plan, write a menu, or dash off to the bank to apply for a loan, here are 4 essential elements of a location to consider:

Population Base/ Demographics – There need to be enough people who live or work in, or pass through, the area on a regular basis to keep your restaurant busy.  The population base and the different types of traffic will dictate some of your operating procedures.  For example, if you are in a thriving downtown commercial area, you might only open for breakfast and lunch but close for dinner, as there is not enough foot traffic to stay open. Your location, and its demographics, may influence your menu design, as well.

To analyze the population base of a particular area fully, you can commission a site study. A reputable local real estate broker or the local chamber of commerce can also provide some of this basic information. 

Financial Realities – Rent is usually your largest fixed expense, and you will probably have significant capital investment to prepare the space to be operational, therefore your business plan must account for covering and recuperating these expenses.  In building your business plan, you will have to budget several scenarios to determine how many guests you will have to serve, at a specific check average to be profitable at a given rent; you will also need to determine if the plan is sustainable over time, to meet your financial obligations.

Accessibility – There is a reason that major restaurant chains are often located near main intersections or highway and freeway exits. Most successful restaurants, whether in urban or suburban areas, are easy to find.  Your restaurant should be street-facing and not tucked away in a building or set back. 

How your customers get to you is also a consideration. A parking lot, easy public or street parking, and nearby public transit all improve accessibility; alternately you might offer valet service. The bottom line is that your customers need to be able to find you, and should be able to get to you - make it easy for them!

Operational Needs – A space that does not immediately accommodate your operational needs is not a bad space, it may in fact be a very good space; it just changes your financial calculations. A few examples of items that can affect the capital investment or the targeted cash flow of your business:  Many office buildings do not allow cooking in the attached retail spaces, as they do not want smells permeating the building; if they do allow it, you may have to build out proper ventilation.  Ensure the space is ADA compliant, and meets local public safety codes; if it is not, you will have to alter the space to adhere to regulations. The zoning of a location is vital; some municipalities may limit sidewalk or outside seating, or may not issue liquor licenses if you are located near a school or house of worship. 

Do your due diligence. By understanding each of these elements, and how they may affect your business plan, you can better choose the right location for your new restaurant.

4Q can provide restaurant site selection consulting services and works with New York’s best commercial real estate brokers to find a location that meets your every need. 

Don’t know where to begin?  Ask yourself, do you have the proper business plan in place to help you be as profitable as possible?  4Q Consulting can develop customized business plans, and operational guidelines to meet your needs.  Email us today for a free business consultation at www.4qconsult.com

All original content copyright Noelle E. Ifshin, 2012-2013. 

Risks and Responsibility of Owning and/or Operating a Restaurant Series:  Accident Prevention

When you decide to own or operate a restaurant there are inherent risks and responsibilities that you are undertaking.  It is important that you take every measure to minimize these to protect yourself and your employees from possible injury, harm, litigation and financial loss.

As a restaurant owner, it is your responsibility to keep both your guests and employees safe, while they are in your establishment.  Restaurants are full of hazards and can be dangerous places, if safety is not top of mind.  Injuries from accidents in your restaurant of either a guest or employee create a no-win situation for everyone involved.  The injured party experiences pain, suffering and incapacitation while the company suffers from the loss of the injured person's contributions, possible litigation and financial loss.

Here are four basic steps to help prevent accidents in your restaurant:

Cleanliness & Maintenance – Slips, trips and falls are the most common types of accidents in restaurants and these are most often caused by wet, greasy or unclean floors; uneven, improperly secured and/or frayed flooring or carpeting can also be the culprits.  Spills and wet floors should be cleaned up as soon as they occur, and trip hazards should be fixed as soon as they become apparent. Additionally, handrails should be properly secured, outside walkways should be well lit and all stairways should be kept clear.  Another common cause of injury is poorly maintained or broken equipment: This could be as small as chipped glasses in the dining room or as large as frayed electrical wires on the Robot Coupe. Ensure that all equipment is routinely inspected, serviced or replaced for the safety of your employees and guests. 

Safety Tools for the Job – Proper clothing on your employees can be one of the most valuable safety tools in your restaurant.  Starting from the bottom up, all employees should wear sturdy leather, anti-slip shoes specifically designed for hospitality workers.  Moving upwards, legs, arms and heads should be covered in kitchens to prevent cuts and burns; in the dining rooms, uniforms should fit properly to avoid trips on pant legs and sleeves getting caught on service items or in machinery.  Additional types of supplies for safety include, but are not limited to: “caution when wet” signs, knife guards and gloves, proper eye protection, and guards on slicers.

Safety Protocols – Written guidelines for safety procedures must be developed, communicated to all employees and adhered to.  These procedures should become part of the routine, with managers and supervisors integrating them into their daily activities: training, pre-service uniform line ups, and regular facilities inspections. Job-specific protocols should be included in position-specific written manuals, and general safety protocols should distributed to all employees in writing.  Never assume that your employees know even the most basic safety protocols, and always put them in writing.

Train, Train and Train Again – Safety training should be a major focus when on-boarding new employees, however training should not stop there. Accidents often happen when employees become complacent; incorporate safety procedures into employees’ daily job responsibilities and reinforce these protocols with refresher training.  Pre-service staff meetings are a convenient time to discuss safety issues and keep them top-of-mind. It is also helpful to have reminders of safety protocols throughout the work areas: For example, in the delivery receiving area posters reminding proper lifting technique, or signs near large kitchen equipment reminding proper use of safety guards.

The points above are employee training issues at their core.  Properly educating your staff in all manner of restaurant safety is crucial in preventing accidental injury of employees and guests and protecting your business from potential litigation.

Don’t know where to begin?  Ask yourself, do you have the proper procedures and operational guidelines in place to help you be as profitable as possible?  4Q Consulting can develop customized operational guidelines and training programs to meet your needs.  

Email us today for a free business consultation at www.4qconsult.com.    

@4qconsultingLLC