The place where your restaurant is located plays a fundamental role in its success. In this sense, it is appropriate to strategically evaluate the different variables in order to choose the most convenient location. For this reason, we present a list of 11 elements to consider when selecting the location of your business:

  1. Business concept

Do you want a fancy restaurant or a fast-food restaurant? An arepa restaurant, a Mexican food restaurant, a snack bar, Mediterranean cuisine or another type of food?

Defining the personality of your restaurant will allow you to be quickly identified by your ideal customers. For this reason, your business’s location is key to successful operations.

  1. Who is your target market?

The characteristics, preferences, age and profession of your customers are an important element when selecting the location of the restaurant. You will also be able to define the type of food you will offer your diners and gain their trust based on your food offer.

For example, if you are targeting young students, locating your business in an area frequented by them, or in the surrounding areas of a university could be a promising option.

  1. Taxes

The amount of money to be paid to the State varies depending on the country, even the municipality, since there are municipal taxes. You must investigate and analyze the costs associated with your establishment, as well as the different legal deductions available that allow you to reduce or lower the total amount to be paid to the tax authorities.


  1. Characteristics of the area

Take into account whether the restaurant is located in a busy area, a residential area, an industrial area, or an area full of schools or offices. We also advise you to ask yourself, “is my target customer located in this area?”

  1. Climate and area

It is important that the place where the establishment is located is in accordance with the food concept of your business: is it hot or cold? does it have seasons or periods of rain and drought? is it a coastal area, mountain, plains or valley? For example: in the coastal area seafood restaurants are popular.

  1. Legality

The legal system will depend on the country where you are, even the legislation may vary in the different states. In this sense, it is convenient to determine if the location you have chosen is suitable in terms of the legal procedures requested there.

Therefore, we suggest you to know the requirements, associated costs and the duration of the process to register a company, as well as the necessary sanitary permits. Also, be aware of the labor and commercial legislation.

  1. The competition

Within the analysis you make, it is important to take into account your competitors. What is the added value that differentiates you from them? What will make customers choose you over other businesses?

We advise you to consider how many establishments you share the type of food and business model with, for example, are there already four arepa restaurants on that block? only two? or would you be the first?

Each scenario has its pros and cons. If there are many restaurants in the area, the advantage is that there will be more foot traffic and it will be a known area to go out to eat; at the same time, it represents a challenge to stand out.

  1. Culture

Every country has beliefs and its population behaves in a certain way, according to learned norms. Also, within a nation, each locality has its own particularity. We suggest you to study and understand the cultural traits of the country and the area where you will settle.


  1. Comfort for customers

It is appropriate to start from the idea of providing the customer with the greatest possible ease to enjoy the service. What will they have to do to get to the establishment, will the space of the premises allow you to have services that add value to the restaurant such as parking and valet parking, as well as an area for bicycles?

  1. Rent

Generally, the prices for renting or selling properties vary according to the area where they are located. Let’s say you ask for a quote in two premises with the same characteristics located in different areas, their prices may vary, since some areas tend to be cheaper or more expensive compared to others.

  1. Suppliers

The proximity of suppliers is vital to select the place to establish your food business, as this will affect the cost of transportation and the frequency of restocking. It will also determine the space you need to store them and preserve them in optimal condition to offer to the customers.

Each business must be accompanied by its respective action plan, which contemplates all those factors that lead to obtain the planned outcomes. An essential factor is the selection of the location of the establishment, which can determine the success or failure of the business.