4 Tips for Selecting the Right Property for Your Restaurant
Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.
This article was updated on 7/19/2023.
Without question, the COVID-19 pandemic significantly impacted the restaurant industry. Many restaurant properties weren't able to bounce back, and nearly 90,000 have since closed their doors.
The silver lining is that there are many commercial real estate options open for entrepreneurs to start new restaurants and diversify the culinary landscape.
Picking a suitable commercial space to buy or lease for your restaurant, especially in today's economic climate, is one of the most vital decisions you'll ever make for your business.
Here are some tips to help you find the perfect spot.
#1 – Consider Your Target Demographic
The first thing you need to do to find the right restaurant property is figure out what type of people you want to come into your restaurant. How old are they? How much money do they make? What's their race or ethnicity?
You'll find that different parts of the city attract a diverse clientele, whether you're in Houston, TX, or Boston, MA. This can even vary within a mile or two, so it's essential to do your research.
You can use demographics from the U.S. Census website or from our platform right here to find this information. Then, you can use this information to find areas of the city where you would like to search for commercial real estate listings.
#2 – Check Out the Competition
Once you've figured out what zip codes you're targeting, you need to familiarize yourself with the competition. What other kinds of restaurant property are there in proximity to yours? Any online map tool can help with this, or you can go to the site, walk around, and get a feel for the area.
First, determine whether any eateries serve similar cuisine to yours, especially if they're in the same style. Your new sit-down sushi restaurant might not do well if there's another similar concept a block down the street. If there's a restaurant that serves similar food to yours in the area, figure out how you'll differentiate yourself and make your food and dining concept unique.
You might also want to avoid areas that have many restaurant properties already established. While this shows that there are customers in the area, it might also mean that the market is too saturated.
Pay attention to other stores in the neighborhood that aren't restaurants, too. You'll likely attract people who are nearby to shop, so make sure that these shops are relevant to your target demographic.
#3 – Stay Visible
Many restaurants depend on walk-in customers. If you plan to find business this way, ensuring that your potential restaurant property is visible from the street and the sidewalk is extremely important.
Walk and drive past the restaurant property you're looking at acquiring from several different directions. How soon can you see the building coming up as you approach? Is there enough time to turn into the parking lot once you've seen the building? Is any of the current signage big enough to announce what the business does? How easy is it to see the inside of a building from the sidewalk? Can people get an idea of what's inside?
Be aware of trees or other buildings that make it more challenging to see the location. It would help if you also looked for any vacant lots near the property. Your landlord or another commercial real estate developer may want to build something on an empty lot in the future, and you'll have no control over how that will impact the sightline of your restaurant.
#4 – Ask About Parking and Signage When Leasing
When you're touring a new restaurant property for lease, make discussing the parking situation one of your priorities. While you may not need a parking lot in a city like Chicago, IL, it's much better to have a dedicated spot for your patrons to park in most areas.
If there's only street parking near your potential restaurant property, check to see how full it is on a Friday or Saturday night. When customers can't find parking, they'll likely go elsewhere.
You also need to pay attention to signage. Many landlords will have restrictions on what types of signs you can put up, making your business much less visible to people from the sidewalk or the street. Discuss whether you'll be able to put up a sign and how large it can be before you sign on the dotted line.
Finding the right restaurant property for lease or for sale can take some time. It's worth it to wait for a space that you're excited about, which will help you set up your restaurant for success.
List & Browse Restaurant Property for Sale or for Lease for Free on MyEListing.com!
If you need help finding potential restaurant space for lease or for sale in your area, MyEListing can help. We make it easy to find commercial real estate listings in your area, and you can search available listings for free. Get started today!
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