Five Considerations to Make Before Committing to a Restaurant Location

The restaurant location you choose represents the single largest, long-term, fixed-cost obligation of the business. Within the operating spectrum of your new restaurant you can make many choices involving your variable costs. Although once you’ve locked yourself into a location your choices become slim. You are betting everything on this single decision. You are fixing a position in the universe through which you believe customers will find and sustain your restaurant. It won’t move--unless you are planning on opening a food truck.

You will bind yourself legally to this facility and the costs related to operating it for years to come - very often with trailing liability if things don’t work out. Your business revenue may go up and down, but your cost of occupancy often remains fixed and your financial stability may be decided by your cost of occupancy.

The number of considerations involved in choosing your next restaurant location can be overwhelming. So to help you out, we’ve…