Restaurant Location Selection: 5 Most Well Guarded Secrets

Restaurant location selection is the most crucial factor when setting up a new restaurant. A perfect location combined with good food and service will help you to outrank your competitors and who wouldn’t want that.

So, what are the most important factors you look up to when searching for a restaurant location? Come up with five, I’ll wait.

Okay, now that you have five factors that matter to you the most. Let’s set out on a journey to find out the best location for your restaurant.

Since I don’t know what all factors you’ve come up with, I’ll just list a few factors that are important.

If yours is listed below, good, otherwise, do let me know by posting it in the comment section down below.

Restaurant location selection


Setting up a restaurant in a location where no one sees it during its initial days is just pouring money down the drain.

Select a location where others notice your restaurant and feel like eating there sometime. 


Make sure that the restaurant location has adequate space for all the equipment needed to run a restaurant. What looks like a huge space might not be enough, so make sure that it isn’t congested.


If you think that you can outrank your competition, then set up your restaurant close to your major competitor. As your competitor spends huge amounts on advertising, you can also benefit from that. It’s just like access to free candy.


If you’re not interested or don’t have the budget to purchase the location, then just take it on a lease, but make sure that you read the entire lease and if you don’t understand anything get help.

After you’re read it, reread it and make sure that there are no minute clauses containing and/or can make the whole difference.

Once you’ve established your restaurant, you can sign a lease for 5-10 years. But if you’re just starting out, then it’s better to sign a one or two-year lease, as even if your restaurant fails your landlord can demand monthly rent if you’re roped in for a longer lease.

Don’t just take your landlord’s word for it or just shake on it. Make him sign the lease.


No one likes to walk after having a heavy meal and if your customers have to walk to get to your restaurant, then they may go somewhere else. So, make sure that the location has adequate parking space and the parking lot is close by.


Now that I have your attention, let’s talk about the curse. I’m not talking about voodoo or anything. Even if it is located near a bustling pedestrian street just research about the place and find out if there were any restaurant nearby that failed. If the answer is yes, then it’s your call, but it’s better to avoid that location instead of knowingly taking a risk.

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