Choosing The Ideal Restaurant Location In Singapore – Factors To Keep In Mind

Choosing The Ideal Restaurant Location In Singapore - Factors To Keep In Mind

Sustaining in the restaurant industry In Singapore can be tough, the competition is stiff, and new restaurants keep cropping up now and then. In a competitive environment like this, the restaurant location of your business plays a vital role in deciding the fate of your restaurant and how successful it’ll be in the long run. An excellent restaurant location ensures a good footfall which is beneficial for your restaurant’s business and is as crucial as the food you serve. Low rent shouldn’t be your only criteria while searching for a location as it can eventually prove to be extortionate. If you are searching for an apt location for your restaurant in Singapore this article would be your holy grail!

Deciding The Restaurant Location For Different Restaurant Formats

Your restaurant’s site along with the quality of the food you serve helps in captivating people to dine at your restaurant.

It is essential to select the correct location based on the type of restaurant you own. The place that might look perfect for fine dining might not work for a quick service restaurant or a food truck; therefore we have curated a list of things you can reflect upon when selecting your restaurant location.

1. Fine Dining

Running a fine dining restaurant can be a daunting task as it requires you to pay impeccable attention to the details, but if you can find an apt restaurant location for the fine dining restaurant, you have already crossed a significant milestone. The points mentioned below will help you pick out the best spot for fine dining.

(i) Visibility

Setting up a fine dining restaurant in a visible location is vital. You need to ensure the footfall is high since a fine dining restaurant tends to have lesser footfall as compared to any other restaurant format. Setting up your restaurant in a visible and busy location will help you attract more people, especially the ones passing by.

Buying or renting a restaurant in a highly visible and busy location could be a little expensive but it surely is a good investment you won’t regret. For example, renting a restaurant in Clarke Quay could cost you S$ 18,000 for a month.

(ii) Accessibility

Visibility and accessibility go hand in hand. It makes a significant difference in your restaurant’s success if situated in an accessible area. If people can reach your restaurant easily, they are more likely to revisit your restaurant due to the easy accessibility factor. There is a significant reason why several fine dining restaurants are located whether in a hotel or a posh locality which makes accessing the restaurant effortless. If your restaurant is not easily accessible, you won’t be attracting enough customers required to run your restaurant business successfully and profitably.

(iii) Target audience

Every restaurant owner loathes the sight of empty chairs and tables; therefore it is essential to determine your target audience and open up in an apt location to attract the desired customer base.

It does not make any sense to open up a  fine dining restaurant in a campus area as the students won’t be visiting the restaurant due to the fear of high prices; instead, you can select an opulent locality where there are more chances of people visiting your restaurant.

(iv) Proximity to the suppliers

Fine dining restaurants are known for their fresh and well-presented food; therefore it is essential for them to be closer to their suppliers. This will ensure the raw material reaches you fresh.

The quality of the food the fine dining restaurants serve is the driving force behind their success which makes it essential to be close to the supplier to sustain the food standards.

2. Casual Dining Restaurant

A casual dining restaurant has the affordability of a Quick Service Restaurant, along with the experience of good ambiance and seating. A casual dining restaurant falls somewhere between a Fine Dining Restaurant and a QSR. Although the food might be a little expensive as compared to a QSR, people hardly seem to mind this as the portion size of the meals are large and they get to sit and have quality time.

Some essential things to keep in mind while selecting the restaurant location for your casual dining business are:

(i) Visibility

Like any other restaurant, format visibility is the key to ensure a steady footfall. The restaurant should be located in such a manner that it is visible and attract a lot of attention. For example, Duxton Hill is an excellent location for casual dining restaurants.

Duxton Hill is the home of some of the best casual dining restaurant, and yours would fit perfectly right in! Due to this, you can see a lot of footfall here day in and day out.

(ii) Accessibility

You might have a casual dining restaurant up and running but, you hardly get a handful of customers, the reason for this could be the poor accessibility of the restaurant.

If your restaurant is in a conventionally-reachable location, you will eventually see a higher footfall.

Select a restaurant location that has an ample amount of parking as well as is well connected via public transport.

(iii) Target Audience

For every restaurant owner,  it is essential to determine their target audience as it will help them quickly identify the location that can help them serve their desired audience. For a casual dining opening up in a residential area is a good option as it would attract families as well as the younger crowd.

(iv) Proximity to the suppliers

Casual dining restaurant has a high footfall as compared to a fine dining restaurant due to its reasonable prices; therefore ensure that you are closer to your supplier so that as and when you require raw material it can be easily arranged. Use a stock and inventory management software to determine the inventory levels and if a sudden need arises to reach out to your supplier.

3. Quick Service Restaurants

These are one of the most loved forms or restaurants in Singapore; there are approximately four hundred and seventy-seven QSRs that generate S$1,099. With stats like that, you can imagine how important is the location for the success of a QSR.

These points will help you determine your dream restaurant location.

(i) Visibility

A QSR should be visible by the people since they mostly depend on walk-in customers. Few people would drive long distances to visit a QSR; therefore it is vital to let the people passing by know about your QSR. Setup your QSR in a busy locality or near a busy road where people can easily see your restaurant.

(ii) Accessibility

The easier it is to access your QSR, more are the chances of business for a QSR. People would hate to go through a lot of trouble to visit a QSR since it is all about quick food and service, imagine having to wait half an hour to find the right parking spot to grab some food at a QSR. Not being able to find a parking spot can make the customers angry even if you are offering good food at reasonable low prices.

(iii) Target Audience

Once you have the concept in your mind, you should also know the people you wish to cater. The term “appeal to all” fits perfectly for a QSR. They can attract everyone due to the value for money factor that they offer.  Do some research on where your QRS would fit perfectly, for example, if you serve Chinese cuisine, Chinatown would be an excellent location for your QSR.

(iv) Proximity To The Suppliers

Similar to the casual dining, it is easier for the QRS to run out of the kitchen supplies quickly due to their popularity and demand; therefore proximity to the supplier would ensure you never run out of the raw material since the customers wait to hear the word “no.”

4. Food Truck

The concept of a food truck is no longer alien to Singaporeans. It is getting quite popular since it requires fewer investments and can be driven anywhere.

The food trucks are great when it comes to finding the perfect location for the business, if the sales are slow at a particular place, simply drive to another!

These points will help you find the right restaurant location for your food truck.

(i) Find out where to park

It is vital for a food truck owner to decide where he/she wants to park their vehicle at. Ensure you are not breaking any laws and not hindering the path of other vehicles. Knowing the rules and regulations of a location is a must before you decide to park your food truck anywhere.

(ii) Find A Location With High Footfall

For a food truck business, it is crucial to locate at a place with high footfall; It is very rare that a food truck would have a specific spot; therefore it gets difficult for the customers to return to a food truck. The food truck owners need to drive to the place with the most footfall and create business for themselves. No matter how open the parking space is, if there are fewer people in that locality, there is no point in parking your vehicle there.

(iii) Be Where Your Competition Is

This might sound strange, but being where your competition has parked would increase the chances of more people coming to your food truck. Healthy competition is good for the growth of the business after all! Being close to your competitors will give you some insights and help your business grow.

No matter what your restaurant format is, a good restaurant location will help up your game! Be wise when deciding a spot for your restaurant as this will determine the success of your restaurant and how popular it’ll be amongst the people. Singapore’s food market is highly competitive and finding that one perfect location can be tough, but it indeed is not an impossible task.

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Daniel McCarthy is a seasoned restaurant consultant and serves as the Communication Manager at Restroworks, a prominent F&B SaaS company. Drawing from his vast knowledge of leveraging innovative technological solutions, Daniel excels at enhancing restaurant operations and revenue, thereby contributing to the ongoing transformation of the industry.


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