One of the leading reasons why many restaurants fail is a poor location. Location is a crucial factor that contributes to making a restaurant business a failure or success. The restaurant industry is one of the fastest-growing sectors in Saudi Arabia and is predicted to grow at a rate of 6 percent over the next five years. Saudi Arabia has thus become an attractive market for investors looking to get into the F&B sector. While starting their business in Saudi Arabia, restaurateurs must make careful choices while finalizing the location.
Things To Consider While Deciding The Restaurant Location In Saudi Arabia
Many independent players have dominated the restaurant industry in Saudi Arabia. Some of the most prominent locations in the region are Jeddah, Riyadh, and Makkah. Jeddah is home to the most number of restaurants in the area. It is not only a broader market for the restaurants but also reflects a higher spending level compared to the other cities in the Kingdom, with average checks only second to Makkah and higher than Riyadh. However, before finalizing the location for your restaurant, consider the following points in mind while deciding the location of your restaurant.
Finding a good restaurant location is the key to its success. It is firstly vital to conduct in-depth market research and industry analysis in the location where you want to open your restaurant.
Right from conducting a competitor analysis to understanding the target audience, the restaurant site location must be scrutinized on all levels. It is recommended to do a demographic survey to gain a better understanding of the potential customer base and identifying their dining preferences.
It is also a good idea to analyze the existing competition in the vicinity. A competitor doing well in the selected area indicates that there is good market potential in that area. This also helps in figuring out how to funnel the customers from your competitors to your restaurant.
Generally, restaurants that are right in the center of a shopping complex or any other prime location garner maximum visibility and generate the highest footfalls compared to the other areas. If your restaurant is not readily accessible or requires customers to take a detour, chances are that the customer would not go to your restaurant at all.
The restaurant’s area must be compliant with the format. An ideal restaurant location that guarantees visibility can be somewhere around an area that has a large population base, for instance, large cities and towns such as Riyadh or Jeddah. While deciding the location, make sure there are a good number of people around to keep the restaurant business steady.
During the site selection process, the size of the property is also an essential factor to be considered. A larger space might not always be desirable depending on the format of your restaurant. Similarly, cramped layouts may drive customers away in case of overcrowding.
However, what is important is choosing an appropriate space. According to statistics, restaurant owners must allocate five square feet of kitchen space for each table that they decide to put in their restaurant.
Depending on your restaurant concept, you must also determine the size of the seating area, bar, etc. The site should be appropriate to accommodate the entire kitchen staff and the kitchen equipment such as walk-in freezer, cooking stations, etc. that require large spaces. Allocating the right space would also allow your chefs to work in a better manner, thereby avoiding accidents while slipping, trimming, or messing around.
Access and Parking
If the customers face difficulty in finding your restaurant, there are chances that they might likely choose a different restaurant to dine in altogether. For the dine-restaurants, parking is also an essential part of the location. Not having a designated space for parking may also lead to a loss of potential customers, and eventually, a significant revenue loss.
Easy accessibility and parking space around the restaurant is an essential aspect while selecting the restaurant site. Your restaurant must be easily accessible from the road to attract passersby and walk-in clients. Many guests dislike the struggle that comes with finding parking spots.
Whether you’re planning to open a Quick Service Restaurant or a fine dining restaurant in Saudi Arabia, make sure that there is enough place to park near the restaurant. Ensuring that the location you choose has proper accessibility for your customers will significantly help in increasing the sales.
Along with highlighting the restaurant space, it is also essential to check whether the building/area you have chosen for your restaurant is backed with all the necessary amenities. If your restaurant is on an elevated floor or rooftop, make sure that the building is equipped with complete power backups.
Choosing a restaurant location that fulfills all the desired requirements and is yet affordable may seem a daunting task in a capital intensive country like Saudi Arabia. Therefore, sticking to a fixed budget can be one of the biggest challenges while setting up a restaurant here. Prime locations with better facilities cost more. Even though a good spot is essential, it should not come at the cost of spending a small fortune. Ensure that the cost of the site never exceeds more than 10% of your restaurant revenues.
Choosing the preferred location is one of the first steps of setting up a successful restaurant. It not only leads to better business outcomes, it can also prove favorable in marketing and widening your customer base. Consider these stellar tips while choosing the best restaurant location in Saudi Arabia and watch how your revenues rise!