Guide
How to check a cafe or restaurant location before you sign
Check five things, in this order: who lives around it, what's already there, what brings people past, whether the rent still works in a slow month, and who really walks past at your hours. The first three take minutes online. The last two need your own numbers and three short visits.
1. Who lives around it
Draw a circle around the site. Its size depends on how people get to you:
- High street or town centre: about 1 km, a 12-minute walk.
- Neighbourhood street: about 2 km, a 5-minute drive.
- Shopping centre: about 3 km or more. People come by car.
Then ask one question: are people the age of your usual regulars more common inside the circle than in the wider area? A brunch cafe wants plenty of 25 to 44 year olds. A bakery does well with people over 55. A pizza shop wants families.
The comparison matters more than the total. A big number of residents means little if most are the wrong age for what you sell.
Census websites give these numbers by official area. Those areas don't match a circle drawn around your door. Our free check draws the circle at your address and does the comparison for your concept. Our food area pages show it for busy streets in several cities.
2. What's already there
Count the places like yours within the circle. The count alone can mislead, so compare it per resident with the wider area.
- Many places like yours means the area already draws your crowd, but you'd share it. You need a clear reason for people to pick you.
- None at all can be an open gap, or a sign the demand isn't there. Only the street tells you which.
- Many food places of every kind usually means people come from elsewhere to eat. That's good for trade, and it means the residents matter less.
3. What brings people past
Residents are only part of the trade. Look within a short walk for:
- A station: commuters at the morning and evening rush.
- Offices: weekday lunch trade, quiet at weekends.
- A university, college or school: students in term time, parents at drop-off.
- A hospital: staff on shifts and visitors, every day.
- Hotels and attractions: visitors, busiest in the holidays.
Each one changes who your customers are, and when they come. A site next to a station can do well even if few residents are the age of your regulars.
4. Whether the rent fits
Take your honest guess of sales once you're settled. Use 70% of it, because the first months are slow. Rent at 8% of that or less is comfortable. Over 11% is high. In between, it can work but leaves little room. Those two lines are our own rule of thumb, not research.
Put another way: at 11%, the takings of your first 3 trading days each month go to the landlord. Work out yours with the rent calculator.
5. Who really walks past
Stand across the street at the hours you'd trade, on three different days. Count who walks past, and who stops or looks in. Ask ten people what they'd come back for.
It's the one check no website can do for you. How to check foot traffic has the sessions, a count sheet and how to read it.
Red flags before you sign
- Rent above 11% of cautious sales, and the landlord won't move.
- People your regulars' age are clearly less common here than in the wider area, and nothing nearby brings people past.
- The street is quiet at your hours on all three counts.
- Several places like yours within a few minutes' walk, and you can't say in one line why people would pick you.
- To break even, you need more customers a day than the number who stopped or looked in during the busiest hour of your count.
One red flag is a reason to negotiate or change the plan. Two or more is a reason to look at another site.
A simple way to compare sites
Score each site from 1 to 5 on each check. A 1 on any line is worth a hard look, whatever the total.
| Check | Score 5 when | Score 1 when |
|---|---|---|
| Who lives there | People your regulars' age are clearly more common here than in the wider area | They're clearly less common |
| What's already there | You can say why people would pick you | You'd be one of many, with nothing different |
| What brings people past | A station, offices or a college at your hours | Nothing within a short walk |
| Rent | 8% of cautious sales or less | Over 11% |
| The street count | Busy with your kind of customer at your hours | Quiet at your hours |
What no check can tell you
None of this predicts success. Good operators do well on average streets, and good streets don't save a weak offer. The checks show where a site works for you and where it works against you. You decide.