Online Companion: Successful Restaurant Management, From Vision to Execution

Chapter 3

Site Selection Form

Figure 3-1

This worksheet assists in evaluating a potential site for a restaurant. By simply following the instructions, the user can determine if the site will fill the needs of the restaurant.

Conducting research to choose a site for the restaurant is not usually in the realm of expertise of a prospective restaurant owner. If a particular site is recognized as a great location, the odds are that others also see the same opportunity, and a restaurant owner could face competition from other operators who have greater access to capital or have the ability to assume more risk. Still, it is important to have a basic understanding of how to conduct research.

This worksheet will give an overall score of the viability of a restaurant in a given market. The scoring on this form is subjective and the person using it must be somewhat familiar with the site, the surrounding area and certain trends. In using the form, a line-by-line description is given as to how to score each line. Each item will receive a score from one to ten with ten being the best.

In determining the quality of a site, needed information includes:

  • Demographic data,
  • Geographic Location,
  • Future growth plans of the area,
  • The history of the location,
  • Automobile traffic near the location,
  • Foot traffic in and around the location,
  • Other businesses that would draw traffic into an area (i.e., a strip mall or shopping center),
  • Restaurant market saturation,
  • Direct restaurant competition,
  • Crime trends,
  • Convenience of location,
  • Past problems of the building/land,
  • Driving visibility,
  • Parking,
  • Ease of access,
  • Lighting in parking lot,
  • Office buildings in the area, and
  • Hotels in the area.

In determining the viability of a site, assign a letter code from A through D. An "A" site is a prime location with high visibility, heavy automobile and/or foot traffic, ease of access to parking and other businesses. Potential owners may also want to add a suffix of "+" or "-" to the letter, such as an A+ location. This is prime real estate that should not last long on the market. An "A" location, under normal circumstances, will carry with it a higher price tag or lease payment. The owner of a "D" location is usually happy to have someone in the spot.

Scoring is as follows:

9 - 10 A+ location
8.5 - 9 A location
7.5 - 8 B location
7 - 7.5 C location
Below 7 is a D location and should be avoided.