When You Wan to Expand: Restaurant Expansion Done Right


Owning a restaurant can be a profitable business. People will always need food, and depending on the sort of cuisine you specialize in, you might get a lot of regulars. However, when your restaurant becomes successful, it might be not easy to figure out where to go from there. The obvious move is to open a new branch. But it can be risky, so here are some things that you need to know to ensure your success.

Do Market Research

Before anything else, you should determine whether there is a chance for your new branch to succeed. To find this out, you should do some market research. The best indicator that you can open a new branch is whether your amount of current customers is more than your branch can handle. When your restaurant is struggling to keep up with the demand, that can mean that there is an untapped market out there that you can easily tap.

You should also figure out where all of your customers come from. For example, if any of your customers are from nearby, then you might not want to open a branch too close to your current location. This could lead to you losing customers in your main branch.

Find The Right Location

If the research shows that there is a demand for a new branch of your restaurant, you should then look for a prime location for it. There are several factors to consider when looking for a place where you can open a new branch. Two main factors are accessibility and visibility. You want a place that will attract new customers while also allowing as many people as possible to become customers.

Prime locations for a new branch are somewhere in a commercial area or a busy thoroughfare. Such locations will allow people walking by to see your restaurant and can draw them in. Foot traffic can influence people to walk into your new branch, which leads to more sales. The movement of people can determine the hours that your location is open. For example, if there are 24 hours of activity in your location, you might consider staying open round-the-clock.

Accessibility is not only how easy it is to reach the place. It also includes factors like parking, space, and even safety. Besides that, you should also consider the potential competition in the area.

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Get Some Funding

When you have a location or, better yet, multiple locations to choose from, it is time to raise the money for your place. Your initial branch might be bringing in a steady stream of revenue, but a new location will require much more money. You will need to buy a property and pay for construction. You’ll also need funds to buy equipment. Initial capital is also necessary for the branch’s hiring and more.

The likely source of your funds will be loans. To get the best loans possible, you’ll need to come up with a good business plan. This is what you will present to the lenders so that they can give you a loan. If you need to mortgage a property, find an agent who could offer you the best property mortgage rates along with a reasonable interest rate for your loan.

Start Building

With money ready, you should start building. Whether you are building from the ground up or merely renovating an existing location, you will need a good contractor. Work with them to ensure that you have a restaurant ready on time. If you worked with a designer on your initial branch, then you should contact them again so that your new location will have the same style.

The physical location is only one aspect of the construction. You’ll need to buy furnishings and more. Additionally, there is a need for equipment and supplies. This is where you will need to invest most of your money.

Hire The Right People

Before construction is done, you also need to have the right people. Since this is your second location, you likely have a team of veterans in your original place. While you can offer some of the promotions to help manage your new location, you should mostly hire new people. A new place needs a different approach. It is better to hire qualified people who can do the job and let them do what needs to be done.

A second branch can be the first step for your restaurant to become a food chain. Doing it right can help ensure that people will know more about your brand. It can still be risky, but you can lower the risks so that you have a good chance of success.


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