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

It goes without saying that picking the proper location for a new restaurant establishment is one of the biggest decisions in determining the success of the business. But what factors go into selecting the right spot? There are many, and we asked several multi-unit restaurant franchisees about how they decide the best location when opening a new restaurant.

Having good visibility and access to your business is crucial. Customers need to be able to see your signage and get there easily through local traffic patterns or walking from nearby locations. If people are not aware your restaurant is there and cannot get there conveniently, that is the first step in losing potential business.

Operators will also want to conduct demographic research to make sure residents in a given area match the customer base for their brand. Many franchisees suggested having complementary businesses nearby to help bring in additional customers. There are many different factors to consider when deciding on a new location and conducting the proper research in advance is paramount. It could be the difference between a restaurant’s success or failure.

We also asked several multi-unit restaurant operators about their business philosophy. Everyone has a certain set of principles and beliefs that guide their daily operations. It often starts at the top and trickles down to each level of the business. Read below to gain insight from a few multi-unit franchisees across the restaurant industry.

Julie Roettger

Company: Northcott Hospitality

Brands: 18 Perkins, 2 Houlihan’s

Years in Franchising: 23

When looking for a location we take into consideration the size of the community and research the competitors in the area. We look for a location with good visibility and good access. Other components we look at are the drivers for the business such as the major employers in the area, schools and colleges, if it’s a seasonal destination, local businesses, and proximity for guests. We also consider the size of the property to best fit our needs for the restaurant space, parking, layout of the restaurant, and zoning requirements.

Jamie Stapleton

Company: iHeartCoffee, LLC

Brands: 8 Scooter’s Coffee

Years in Franchising: 5

Identifying the ideal site is one of the most critical decisions you’ll make, as it can play a pivotal role in the success of your coffeehouse franchise. What’s worked for us in our decision-making is focusing on the VAST principle, which stands for visibility, access, signage, and traffic.

When evaluating sites we’re interested in, we assess a handful of factors, including the flow of traffic during peak hours, whether customers can easily see our signage from their cars, the direction and volume of traffic, and how weather conditions may impact this flow.

Patrick Shannon

Company: Milan Pizza

Brands: 7 Hungry Howie’s

Years in Franchising: 29

Finding the right location takes time and research. I find it’s best to analyze competition, demographics, traffic flow, and visibility. In smaller markets, which is where I’ve built--securing a prime, high-traffic spot is key. The best locations not only attract foot traffic but also serve as built-in advertising. I can’t stress enough, take your time, do your due diligence, and find the “sweet spot” for success.

Micah Sharpe

Company: Fresh Management

Brands: 11 Penn Station East Coast Subs

Years in Franchising: 2

When choosing a new location, we look at things like residential traffic, and nearby businesses that could bring in customers. We also keep a close eye on traffic counts to make sure the spot has strong visibility and potential for steady business. We take into consideration the proximity of the nearest Penn Station East Coast Subs location and how that may alter our sales potential. We also look at ingress/egress, roadside visibility, and the available parking. Finally, co-tenancy is a huge factor in site locations. You need to see a great mix of co-tenants to pull in customers so you’re not a destination location only.

Eric Sutterfield

Company: Tycor Management

Brands: 11 Beans & Brews Coffeehouse

Years in Franchising: 20

We rely on Beans & Brews Coffeehouse corporate to scout and analyze potential locations. Their real estate team does extensive groundwork, assessing visibility, demographics, and market potential before presenting a site for approval. If it fits our region and business goals, we move forward.

Key factors we consider include proximity to major anchor stores like Walmart or Target, traffic flow, and surrounding residential or commercial developments. We also assess whether the area is growing and if nearby neighborhoods will funnel customers to our store. Once we purchase a franchise license, corporate prioritizes locations based on availability, ensuring a strategic expansion approach.

Ken Patel

Company: Shakti 1 Enterprises, Inc. & Heal N Care, LLC

Brands: 1 Dirty Dough, 1 Wing It! On, 1 Big Chicken, 8 7/11, 1 American Family Care 

Years in Franchising: 24

When evaluating locations, Craveworthy Brands and our team look for high-impact, high-growth areas with strong foot traffic and nearby complementary businesses. Our experience in multi-brand, multi-unit ownership has given us an understanding of consumer preferences and market behavior, allowing us to identify opportunities where a new concept can thrive.

FRANCHISEE BYTES

What is your business philosophy?

Hire the best, invest in your people, care about their success, and get out of their way.
-Irfaan Lalani, CEO/Co-Founder, Vibe Restaurants, 76 Little Caesars, 60 Wingstop, 3 Whataburger

Treat a person as they are, they will stay as they are. Treat them as they ought to be, and they become what they ought to be.
-Chad Given, Brand President, Sizzling Platter, 361 Little Caesars, 107 Little Caesars Mexico, 185 Wingstop, 92 Jamba Juice, 33 Jersey Mike’s, 31 Dunkin’, 7 Sizzler, 5 Red Robin, Cinnabon 1

We try to be an employer of choice. We believe that if our employees are happy, they'll provide great service to our customers, and we'll become their top option. If we are a restaurant of choice, we can deliver strong sales and profits and become an attractive investment. We will also generate the funds needed to reinvest in our employees and restaurants.
-Randy Pianin, CEO, Royal Restaurant Group, 61 Burger King, 4 Potbelly

Treat it as business and don't take it personally.
-Yousuf Nabi, Owner & CEO of Gotham IP Inc., 10 Mrs. Fields, 10 Sbarro, 4 TCBY

I am a value investor by nature, but I believe people ultimately determine the outcome. In my view, the market often overvalues assets and undervalues people.
-Mike James, Founder/Managing Partner, Guernsey Holdings, 122 Sonic, 20 Zaxby's, 3 Take 5 Oil Change

Serve and support like family. My business exists because of the guests and my team, and taking care of both is critical to success.
-Bryce Bares, Franchise Owner, QSR Services, 30 Dunkin’, 1 Baskin-Robbins

Work harder than anyone and be willing to sacrifice for the greater good of others. Focus on creating opportunities for others and provide continuous advancement for our team members personally, professionally, and financially. I try to wake up every day and approach the day with the same intensity, focus and gratitude that I had on day one.
-Nick Crouch, Co-CEO, DYNE Hospitality Group, 118 Tropical Smoothie Cafes

If you treat your employees and customers right, pray, and make sound business decisions, success will follow.
-Stephanie Mosely, President, Pisa Pie Enterprises, 6 Marco’s Pizza