How to Choose the Right Property for Your Restaurant

The service industry is a tricky business, and if you want to turn in profits eventually, you’re going to have to be smart about the choices you make. Any business expert will tell you that location is the most important part of setting up a restaurant. It could make or break your business. Follow these 4 easy steps to ensure that you pick the right property for your restaurant.


  1. 1
    Check the property and decide if it has enough space
    • Finding a property that has enough space to accommodate customers is one of the most crucial steps. You should decide how many customers you intend to serve every day and what are your expansion plans for the business. If the property is too small, your customers will not be able to enjoy their food due to lack of privacy. Therefore, make sure that the property is large enough so that your customers can get enough room to move around and relax.
    • The most important part of a restaurant is the kitchen. If you are going to open a takeaway restaurant, you should give more emphasis to the kitchen as there is lesser emphasis on accommodating customers. The kitchen should be able to accommodate your cooking staff, which includes a team of chefs, cleaners, and helpers. Also, each department should have enough space to work comfortably.
    • In order to ensure smooth functioning of the restaurant, you must check whether there is a separate entrance to the kitchen for delivery staff. This will ensure that normal kitchen operations are not disrupted.
    • Before buying the property, ensure that it is equipped with electrical appliances and the plumbing and electrical work is well-maintained. You must analyse the property and decide if it has sufficient space to fit in all ingredients and cooking equipment.
  2. 2
    Calculate the investment amount. When you are analysing different properties, you should keep a checklist in your mind. The salient points that you should consider before buying the property are as follows:
    • Does the property need a major infrastructural overhaul? Check the property carefully and decide if it needs to be redecorated to fit the restaurant theme you have in mind. If the property needs a major overhaul, it is not advisable to buy such a property. However, this also depends on your budget. If the costs fit your budget and you think your restaurant has the potential to recover investment costs, you can go ahead and buy the property.
    • Will your prospective restaurant look attractive and inviting? Usually restaurants which have large front windows and are adequately lit, attract more customers. Make sure that the property is not hidden away in a lane and doesn’t have a dark or dull exterior. Also, assure that it has enough parking space and is easily accessible by all kinds of customers including guests who make use of wheelchairs.
    • A common mistake people make when diving into such ventures is to look at ways to cut costs. While this makes perfect sense on paper, it might not apply when you’re picking a place to build your restaurant. Don’t compromise on the quality of the property. Even if your initial investment is high, you will earn huge profits if your business is successful. But, if you buy a property that doesn’t cater to your needs or fails to attract guests, your whole business venture will fail. Therefore, make sure that you have a budget, which will allow you to buy the best property for your restaurant.
    • If you find what seems like a great place to set up shop, but the price is suspiciously low, there is usually a reason for this. Ask other businessmen in the area and find out why the property price is so low. If you can’t get enough information, you should hire a real estate expert who is knowledgeable about that particular area. They will be able to analyse the property and tell you the pros and cons of buying it.
  3. 3
    Analyze the demand for your service
    • When you’re choosing a place to start your restaurant, give some thought to whether you will get the number of customers that you need. Different areas have different demands and if your restaurant doesn’t fulfill this very basic necessity, it’s probably not going to do well.
    • Decide what kind of customers you intend to attract. If you want to start a posh and expensive restaurant, you should look for a property that is situated in an upmarket area. Alternatively, if you want to attract students, look for a property that is located close to a college or university. Since students look for cheap food and don’t really care about the decor, you need not spend a lot of money in decorating the place.
  4. 4
    Avoid competition
    • If you have decided to buy a property because it suits your budget and has all the amenities you are looking for, the next important step is to study the market. Find out about the other restaurants in the locality. If there are too many restaurants which are similar to yours, you will not be able to attract a lot of customers. In such a case, you should either look for a different property or you have to market your restaurant better.
    • Don’t buy a property that is surrounded by restaurants serving the same food as yours. No matter how good your restaurant is, it is always wise to avoid competition. For example, if you’re going to open up a pancake diner, picking a location that’s right next to ‘Pancake House’ is asking for trouble.
  5. 5
    Analyse the property’s future growth prospects
    • Always choose a property that has room for business expansion. If you buy a small property, you will not be able to accommodate enough customers even if your business is successful. When you are considering a property, make sure that it has adequate space to seat a lot of guests. This is also applicable to the kitchen area. The kitchen should be spacious enough to fit in more staff and cooking equipment.


  • It is always a good idea to hire a real estate agent or legal expert before buying any kind of commercial property. They will be able to check the legal status of the property and also evaluate its scope for appreciation in the future.
  • If you want to purchase property in a particular location, visit the area and find out how popular it is and what kind of people usually visit that part of the town.

Article Info

Categories: Real Estate