Will a first floor location for my restaurant business not really work out? I keep getting asked this question often.
The answer is simple & straight-forward: "No, It won't work out - Don't do it". The sooner you accept this the easier your decision making process will become. It is not worth the Risk, especially for a first generation entrepreneur with a new business concept. Wait till you find a place that meets your needs and your budget. Be prepared to make some compromises such as taking a smaller space in a ground floor prominent location.
There is a huge-huge difference between a ground floor and the first floor. It is a case of minimizing your chances of failure and maximizing your chances of success.
Check out for yourself how many successful restaurants are in the first floor - pick 100 and I will bet that over 95 will be on the ground floor. There is obviously a very specific business reason for this - every business would love the lower rentals of a first floor, but they still don't do it - How many McDonald's, Dominos or Coffee Days have you seen on a first floor?
Am I saying that there is no way you can be successful by opening a restaurant on the first floor? I am sure you can invest in a penny stock and become a billionaire - it is just a question of the probability of success and failure.
Hi Jayanth,
ReplyDeleteWonderful Blog. Thanks a lot. Much info to clear all cobwebs in a systematic way.
I am planning to open a fast food cafeteria of about 1000 sqft located on the first floor of a commercial building (near a school and mall) in a small city and I wish to ask you:
1. Any special Points to take care of as it would be located on the first floor
2. How to retain the staff, if and when the becomes profitable
3. How to minimise the wastage and other operational costs, if there is a way
Thanks in advance
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