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Finding the Best Market for Opening a Restaurant

December 14, 2016 11:00 am Published by Leave your thoughts
A drawing of a ribbon being cut. A ceremony common when opening a restaurant.

Where should you be opening a restaurant?

There are many difficulties that come with the territory of opening a restaurant. Every restauranteur believes that their place has the best food and staff. Unfortunately, while that might be correct, failure is still very possible.

Close to 60% of all new restaurants close within the first three years. Risk comes with the territory. Sheer luck has a lot to do with this. But a lot of times, opening a restaurant in a bad location is the cause to its stymied potential. Picking the wrong market makes it difficult for a restaurant to survive.

So, which markets are best for restaurants? What do these markets have in common? Here’s a closer look at those questions.

Explore Suburbs Around Big Cities When Opening a Restaurant

Booming food cities such as Nashville and Atlanta are causing newer markets to benefit from their culinary culture. This has worked out great for several cities of this ilk all across the country.

In Franklin, Tennessee, the number of new restaurants increased by 50% over the span of five years. And sales at those establishments top $190 million annually. Restaurants in Alpharetta, Georgia have been even more successful. Their annual sales are at $300 million.

Population Growth Is Good News for Restauranteurs

A city on the rise leads to greater demand for business. Before a market gets oversaturated, having a great location in a city that fits this bill could prove to benefit a restaurant’s staying power. For example, the population of Cedar Park, Texas has grown more than 20% over the past three years. As a direct result, the number of new restaurants has more than doubled.

Opening a restaurant will never be a risk-free venture. But there are calculated measures to take. Finding a market that’s near a big city and prime for growth are just a couple of the many things to consider.

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