One of the most critical components restaurateurs seem to pass up in the real estate site selection process is making sure to perform a thorough analysis of the restaurant's existing customer base. This first step is one of the most integral components in site selection. Knowing the very basics of who your "target audience" is, or what your customer profile is will give you a deeper insight into how to properly choose a location that will become a successful site.

Once you have carefully identified your customer profile, look to the market to find submarkets within your city where your customers reside. You want to make sure that these customers not only live in the submarket but also work there. You will want to seek locations that serve at least two day-parts if your restaurant is open for lunch and dinner.

Next study the density of the submarket, are there enough of your customers around for you to meet your proforma or achieve your desired sales volumes?

Once several submarkets have been identified as meeting the criteria outlined above we get further into the details of what makes a great site.

1. Competition - who is competing in the immediate area for your customer's dollar? Is there an over-saturation of one particular menu in the area? Make sure that your restaurant menu and concept is filling an outright void in the marketplace. Understand the sales volumes of other restaurants operating in the area.

2. Visibility - what sort of frontage does the restaurant have? Is it positioned on a corner, end cap space or freestanding? Make sure to get maximum available signage. Does the restaurant site face a major street or intersection?

3. Accessibility - clear egress to the restaurant site is what you should be looking for. If your customers have to drive around the block to access you, or make an inconvenient u-turn, you know that your accessibility is flawed. Included in accessibility is parking and enough of it in close proximity to your storefront. Second floor restaurant space has always been shunned, and in most cases for a very good reason due to difficult access and lack of visibility.

The Restaurant Deal:

So you have found that perfect location, it meets all the criteria outlined above and in addition your gut tells you it's a winner. A great location only begins with the physical address, to turn that great site into a profitable business you must make good financial and legal decisions before committing to the site by signing a lease.

1. Does the capital cost to convert the location to your concept meet your budget & ROI projections?

2. Can you afford the annual gross rent based on your realistic and conservative gross sales pro-forma for the location?

3. Finally, do you have a level of comfort with your new landlord?

In many cases your choice of location and the terms of your deal will make or break your restaurant's future. Consider these points carefully and have fun with all the exciting aspects of opening a new location.