IF PICKING THE RIGHT LOCATIONS IS SO SIMPLE, WHY HAVE SO MANY RESTAURANTS FAILED?Submitted by John C Melaniphy III on Wed, 06/08/2011 - 12:45
During the recession, thousands of marginal and successful restaurants closed because of fewer people dining out, the loss of significant luncheon business, other financial problems, lack of anticipated sales, rising gasoline prices vs. dining out expenditures, fewer frequent customers, smaller check averages, and consumers trading down, along with locational factors like poor access, limited parking, and numerous other reasons. This is the food business where every customer is a food critique.
Admittedly, in the last several years even restaurants and quick service food unit in good locations have fallen victim to the worst recession in my lifetime. However, even with economic these problems, picking the right locations given all of the problems can help to keep the grim reaper away. Up until 2009, I thought that the 1974-1975 Recession was the worst I had experienced. This one is at least twice as bad.
In my book, The Restaurant Location Guidebook and in my previous book, Restaurant and Fast Food Site Selection, I address Site Selection and Procedures that will maximize sales and minimize the recession hazard, providing some insulation from the recession blues.