Location analysis in the catering industry – an example

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Choosing the right location for your restaurant, café or bar is crucial to the success of your business. But how do aspiring restaurateurs find the best location for their establishment? Without a thorough location analysis, you run the risk of your business quickly getting into financial difficulties. We explain which location factors play the main role in the catering industry.

Contents

catchment area
purchasing power
competition
accessibility
premises and rental price
official requirements

1st catchment area
First, you need to define india phone data the geographical area from which you expect your customers to come. This can vary depending on the type of restaurant you operate. For example, a café in a busy city center will have a different catchment area than a restaurant on the outskirts of town. For a rough overview, you should ask yourself:

Who are the people in this area?
How many people live or work in this area?
Are there times when there are particularly many people in this area?
[Infobox]To analyze the catchment area, you can use various tools and data sources, such as population statistics and market research reports. In most cases, you do not need expensive studies; you can get a lot of data from local authorities.[/Infobox]

2. Purchasing power
Purchasing power refers to the disposable income that people have available for consumer spending , beyond the necessary living expenses. A high purchasing power in your catchment area means that people can potentially spend more money on restaurants.

What is the average income in my catchment area?
Are there differences in purchasing power within the catchment area?
How might purchasing power develop in the next few years (e.g. due to economic trends or construction projects)?
In addition to purchasing power, the preferences and behavior of your target group also play an important role when evaluating restaurant locations . Therefore, you need to understand what your potential customers really want and how much they are willing to pay for it.

What types of catering options are particularly popular with my target group?
Is there a gap in the market that my restaurant business could fill?
How sensitive is my target group to price changes?