Finding the perfect location for a new Cafe, Restaurant or Bar can be a time consuming process. We’ve put together some considerations to help you with your journey.
Population base – Sustaining a new Cafe, Restaurant or Bar
As well as doing your research on foot traffic, drilling down into the demographics of the local population is crucial to the success of your business. Look for information on housing values, the make-up of households (e.g. singles, couples, and families), average income levels, and age groups.
These factors can impact on the type of business, menu and branding you choose, as well as your target market. For example, a millennial population will be attracted to the latest food, drink, and design trends. Baby boomers may not.
The curse of a venue Location
Don’t be afraid to ask your Real Estate Agent or Broker questions about how long a space has been vacant for and the length of previous tenancies. Speak to surrounding business owners and get their opinions on a location’s success.
If a location has seen one failed business after another, people may begin to associate it with bad service, poor quality or a dull atmosphere. Not things to associate with your brand.
Parking
Your venue should be accessible to ample parking. Generally, if people have to drive to your venue and can’t park near it, they will take the easy option and go somewhere where they can park. If your venue isn’t in a building that offers parking, then it should be near on-street or paid parking. If the surrounding population is within easy walking distance, then parking may not be such an issue. Knowing who your customers are and how they will get to you is important.
Importance of Visibility
To be successful your venue must have high foot traffic or car traffic (with parking). Your venue should be visible to the public and so should your venue signage. Check with your local Council if you require a permit or permission for awnings and footpath ‘A’ frame signs. Visibility of your venue and signage is an important for letting people know your business exists and reminds them to drop in.
Size is important – Be flexible
Before you start looking for the perfect location for your new Cafe, Restaurant or Bar, you should have an idea of the size of counters and display cabinets, food and drink preparation areas, toilet facilities, refrigeration, storage areas, and the office area. Don’t underestimate the amount of space these working areas will need.
If you are new to the hospitality industry, specialist consultants such as Danny Russo of Russolini can design a floor plan, and recommend equipment for your kitchen fitout, the right size table and chairs and a profitable menu. Having a flexible floor plan and menu can mean better workflows, happy customers, and a profitable business.
Suitability of venue location
Don’t assume anything when it comes to business. Contact your local council to check the zoning for the venue space and building. You may be required to apply to Council for consent to a change of use. Remember, your lawyer is your best friend.
If your desired location requires extensive renovations, it may be worth paying for professional inspections to ensure the space is compliant with all existing Fire, Safety and Health regulations and standards. Some upgrades (eg. exhaust ventilation or grease traps) can mean the cost of renovation is too expensive to justify the location.
Safety
Don’t overlook the safety aspects of the venue space. Consider things like disability access, trip hazards, electrical wiring, fire alarms, sprinkler systems, and emergency exits. Ask the Real Estate Agent or Broker for proof of compliance with all Fire Safety Regulations (e.g. Fire Safety Statement). If you are purchasing the venue, upgrades to make it compliant may mean significant additional costs. A professional fire and safety inspection may highlight the extent of upgrades and potential costs.
Love thy neighbours
Successful businesses attract other successful businesses. Lots of vacant shop for lease should raise alarm bells and red flags. If the location is full of successful businesses like yours, pop in to see what they’re offering and at what price point. Think about how you will differentiate your business and make a profit with all that competition.
Negotiate the lease & understand your commitment
If you will be leasing your new venue, find out how long it has been vacant and speak to nearby businesses about how easy it is to deal with the Landlord. If your venue requires extensive renovations, you may be able to negotiate who pays for what with the Landlord especially if you are making improvements that add value to the property.
You may be able to negotiate terms around when lease payments commence and the rate of annual increases. Ensure you have a contract and/or lease in place, before any renovations commence, which clearly states who is responsible for which renovations.
Getting legal advice before you sign a contract or lease is vital. You should ask questions and ensure you fully understand the legal terms and your and the Landlord’s obligations.
Do your research – Don’t be impulsive
If you think you’ve found your perfect venue location, stop! Take extra time to visit the area and surrounding businesses during different times of the day, during the week, and on weekends. You want to identify any times that business is slow and the amount of foot traffic during peak times. Also consider the impact of holidays, festivals, large sporting and other events on the businesses in the area. This extra effort may help crystallise your decision about your venue location.
Personalised service starts here
When you have secured your perfect venue location, Whomix can assist you with choosing everything from crockery, cutlery and glassware to storage, and chemicals and janitorial items. We can recommend options that provide durability and functionality, but also aesthetic appeal.
Call us on (02) 9052 9111
Disclaimer: The contents of this blog are meant to be general information only and not professional advice.
Related reading
If you enjoyed this Blog you may find the following Blogs useful:
Essential Guide – Opening a new Cafe, Restaurant or Bar
New Cafe, Restaurant or Bar – Venue setup checklist
New Cafe, Restaurant or Bar – Council approval