How do you decide on the locations for new units? What factors or data points are most critical in your analysis?

How do you react when a new restaurant opens in your city? Maybe you get excited about a popular brand finally arriving—or at least moving 20 minutes closer. You might also wonder why it took so long to get there in the first place.

Operators weigh a long list of factors when choosing a site for a new restaurant and that decision often determines whether the business succeeds or fails. Before the first shovel hits the ground, they analyze data, study the market, and evaluate the location from every angle. We asked several multi-unit franchisees what they look for when deciding where to open their next restaurant.

Demographic research may be the most important consideration in potentially adding a restaurant to a new location. What is the size and density of the market? What is the median income of residents of that area, and will they be able to consistently support a new restaurant?

The physical location of the restaurant will also be a crucial factor. That includes visibility and whether it is a free-standing building, part of a strip center with other tenants, or an end cap unit. Some franchisees look for locations that match their concept, such as those that can accommodate drive-thru service or the size and layout of a facility that can prepare large-scale catering orders. Operators and their franchisors will often work together to study available parking, traffic patterns, and ease of entering or exiting the location.

One underappreciated relationship is the one that franchisees have with their vendors. Restaurant owners rely upon these partners to provide them with their products and services in a timely manner and hopefully at a reasonable price. In this week’s Franchisee Bytes section, we asked several multi-unit operators what they most need from their vendors. Consistency and reliability are the most popular responses. See below for a variety of factors that are important in maintaining a positive relationship between restaurant owners and their vendors.

Matt Langdon

Company: SHS Management
Brands: 6 Penn Station East Coast Subs
Years in Franchising: 32

When selecting new locations, I prefer communities I’m already familiar with. Having a strong understanding of the local customer base helps reduce risk and allows me to better anticipate demand. I typically look for areas with a healthy mix of residential neighborhoods and ongoing commercial development. Strong school systems are also a positive indicator, as these communities provide a customer base that aligns well with our products.

Skip Russell

Company: Russell Restaurants
Brands: 5 Newk’s Eatery
Years in Franchising: 31

In Mississippi, most of the larger metros are already established, so we look at secondary markets like Brookhaven and Magee that have strong community identities and high traffic counts. We try placing units where they can support one another through shared management or marketing efforts. The most critical points for us are daytime population, proximity to retail hubs, and ease of access. If people can’t get in and out quickly for a lunch break or a catering pickup, the location won’t reach its full potential. As for Louisiana, there are fewer Newk’s locations than in Mississippi, so we can target more metropolitan areas along the north shore.

Todd Rogers

Company: Viking Group Inc.
Brands: 17 Donatos Pizza
Years in Franchising: 31

We look for highly visible locations with strong traffic counts and easy ingress and egress. Our first choice is typically a freestanding building with a pickup window, followed by a strip center end cap that also has a pickup window. We look closely at the demographics in the surrounding areas, particularly looking for strong household density within a one- and two-mile radius, as well as the presence of nearby businesses and workplaces that can help drive lunch traffic.

Jim D'Aquila

Company: Virentes Hospitality Group
Brands: 5 Shipley Donuts, 3 Saigon Hustle, 1 Sweet Paris
Years in Franchising: 17

Site selection is the most complex and critical decision we make, and we approach it with a data-driven process. Every potential site is evaluated through a custom scorecard of 20 to 30 weighted criteria on a 100-point scale. If it scores below 85, it is out. Between 85 and 90, we dig deeper. At 90 or above, we go hard after that lease.

We also work closely with Shipley’s development team, which serves as a strong partner throughout the site selection process. They bring valuable market insight, real estate expertise, and brand-level perspectives that help validate opportunities and strengthen our decision-making.

For Shipley Donuts specifically, the morning commute drives everything. We prioritize locations on the side of the road where traffic is heading to work, as that's when people are making their breakfast and coffee decisions. Beyond that, our non-negotiables are:

• Visibility: Critical in newer markets like Florida, where we are still building awareness
• Easy in and out: Convenience and ease of the morning commute are essential
• Ample parking and drive-through access: Ideally, both; an endcap at minimum
• Demographics: While Shipley performs across income levels, it is essential to be located in middle-income, blue-collar, tradesman communities

We layer that with external data, which includes credit card spends, household income, drive-time analysis, and age demographics. We also bring architects in early, before most operators would.

Most importantly, one thing our group does that most people skip: we go back a year after opening and re-score the original analysis against actual performance. That feedback loop keeps our model sharp.

Tom Kazbour

Company: Kazbour Operating Group
Brands: 63 Hungry Howie’s
Years in Franchising: 42

For me, it starts with vision and gut, then it’s backed by discipline. I’ve never accepted the idea that a location is “bad.” If we build smart, operate right, and out‑work everybody, we win. But we still evaluate:

• Population growth and density
• Competitor saturation and white space
• Traffic flow, visibility, and co‑tenancy
• Labor pool stability
• Delivery and carryout accessibility

Franchisee Bytes

What do you need from vendors?

Simple: Offer their products and services at a price that is relative to the market without causing me any undue hardship by using them. I find lately that we need to increasingly follow up with our vendors about products and services not meeting the original standards. I should not have to send reminders to vendors of what the terms of our agreements are.
-Andy Cabral, CEO, Vigario Management, 25 Dunkin’, 9 Baskin-Robbins

I need vendors to ensure the availability of products and services on call and to deliver on time.
-Sam Chand, CEO, Jasam Enterprises, 25 Checkers & Rally’s, 35 KFC

Commitment with a partnership mentality. Advisors and vendors should bring solutions, not just products, and be excellent at logistics and execution.
-Amol Kohli, Managing Partner, Legacy Brands International/Chairman of the Board, Brix Holdings, Franchisee: 63 Orange Leaf, 60 Clean Juice, 36 Red Mango, 6 Humble Donut Co., 3 Souper Salad, 1 Smoothie Factory + Kitchen, Franchisor: 61 Friendly’s

Reliability and partnership. I value vendors who view themselves as an extension of our team and take pride in contributing to our success. Strong partnerships make it easier to deliver a consistent, high-quality experience for our guests.
-Misha Punwani, Multi-Unit Franchise Owner, 16 Playa Bowls

Great pricing, excellent service, and on-time deliveries.
-Tom Lovelace, Owner/President, Tom Lovelace Group, 96 Papa Murphy’s

Consistency, timeliness in deliveries, and clear communication when something isn’t going the way we want it. We don’t like surprises because we cannot proactively plan for the solution, and it negatively affects the guest experience.
-Nick Crouch, Co-CEO, Dyne Hospitality Group, 118 Tropical Smoothie Cafe

I need vendors who are reliable and consistent. They need to do what they say they are going to do. A great vendor also realizes that this is a partnership and that our profitability is tied to each other. It is innovation with practicality. I want to embrace change that works and not just change for change’s sake.
-Lisa Starnes, Franchise Owner, Starnes Holdings, 8 Captain D’s

Flexibility and to put their best bid forward first. We have vendor partners that we use exclusively because we have learned they are not going to overcharge us, and they will work with us to come up with the most mutually beneficial solution to any challenge.
-Alex Karcher, Operating Principal, JCK Restaurants, 61 Carl’s Jr., 11 Jersey Mike’s Subs, 8 The Human Bean, 8 Dave’s Hot Chicken, 1 Hawaiian Bros Island Grill

Consistent delivery, prices, and quality of service.
-Carrie and Josh Ayers, Owners/Operators, 6 Playa Bowls