Minding Demographics: The Most Important Factors for a Restaurant Owner
No single factor can impact the success of a restaurant more than its physical location. Unlike many business types today, restaurant traffic is not driven by how well you reach an audience online, but rather how convenient you are to your target audience visiting. Keeping this in mind, every prospective restaurant owner must have a clear definition of what type of customer he or she is looking to attract when selecting a location. To help establish this, he or she must ask certain key questions.
What Demographics Really Matter?
- What is the target age range of the restaurant? This can make a big difference in selecting not only location, but also decor and other factors. An upscale quiet atmosphere is going to appeal more to an established, older generation while a quick service diner may work better for younger individuals.
- What is the income level? This is one of the most obvious factors, as an expensive restaurant is not going to appeal to a neighborhood where the average income is low. On the other hand, a quick service diner might not do well near a neighborhood with a home owner’s association.
- What is the marital status of the area? Single and married people often look for different dining experiences, so if most of the homes in a neighborhood are owned by single individuals, one will want a different approach than a neighborhood with married couples.
- What is the size of the average household? As explained in psychographics, this can certainly affect how often a family eats out.
Also Explore Psychographics
Beyond looking at basic classifications, it is important to understand purchase behavior of different demographic groups to best plan out a restaurant. For example, 18-24 year olds eat out and consume alcohol at restaurants or bars more than any other group. Another consideration is that smaller households eat out more often than larger ones. Additionally, wealthy individuals who tend to travel a lot seek out ethnic or exotic foods more often. There are many more to consider, but this gives an idea of just how complex a selection process can become.
Regardless of what type of restaurant someone wishes to build, it is important to look at all of these factors before selecting a location. Once everything is laid out, make sure that the selection is correct before moving forward on a lease. Ultimately, taking a little extra time to get the perfect location can mean a lot to the bottom line.
If you need assistance locating the best professional advisors to help you establish your new restaurant business, contact Lewis Sassoon of Sassoon & Cymrot for guidance and consultation.