Are you thinking of opening a second restaurant location? Congratulations, that’s a big step! Before you jump in at the deep end, take a moment to ensure this is the right move for you, and formulate a plan based on the indispensable steps we outline in the article below.
How Do I Know When to Open a Second Location for My Restaurant?
Before you begin the process of opening a second restaurant location, you need to make sure you’re ready. This is a huge step that will require a big time and money investment, so it shouldn’t be taken lightly.
If you check these boxes, then you’re ready for a second location:
- You’re making a steady, consistent profit at your current restaurant location.
- Customers are clamoring for the type of cuisine you offer, or your restaurant is always busy, and people are asking for additional seating.
- Operations at your first location are running smoothly, from the staff to management, organization, and so on.
- You have the necessary funding or the possibility to get it.
- You are ready to take on a new challenge being fully aware that it will mean more time put into managing the restaurant.
The Benefits of Opening a New Restaurant Location
If you’re wondering, “What do I get if I grow my restaurant by opening a new location?”, here is the answer:
- More customers: a new restaurant location means you get to serve more customers every day, and even expand your customer base, especially if your new location is not in the same area as your first one.
- More revenue: it’s simple – the more customers you serve, the higher your daily revenue will be.
- Increased brand recognition and popularity: your brand will be more easily recognizable if people see your logo more often. You will also be able to better compete against similar restaurants in the area.
- Improved customer service: by replicating the success of your initial location, you can ensure both new customers and regulars feel welcomed in your restaurant.
Opening a Second Restaurant Location in 7 Steps
1. Scout a new location
The first step in opening a new business location is always, well… the location. There are many factors to consider when choosing a new location, such as visibility, accessibility, traffic, competition, space necessities, affordability, and more.
Do you want your second restaurant location to be close to the first one, or would you like to cover more ground by catering to an area where the competition is low?
Answer these questions before you start your search. If people are always waiting in line for a table at your restaurant, it might be useful to open a second location nearby to absorb some of the overflow.
If you’re interested in attracting a new customer base in an area where people are craving your cuisine and there aren’t any competitors, that might mean you’ll do well further away from your initial location.
2. Draft a restaurant expansion business plan
You might think that opening a new branch of business doesn’t require a new business plan, since you already have one for the first location, but that’s not true.
While you can use the first one as a blueprint, with a new location come new considerations, from different strengths, weaknesses, opportunities, and threats, to a new staff and maybe even menu.
Writing a detailed business plan will help you plan for success and solidify your existing procedures in a way that makes sense for the new location.
Pro tip: use a business plan software to save time and avoid calculation errors.
3. Hire a new team
Starting with the right management, all the way down to chefs, servers, dishwashers, and so on, you should aim to replicate what makes your first location run so well.
Go through the same hiring and training process and try to find people who align with your vision for the restaurant and who are in it for the long haul.
Hiring a good manager is imperative since you won’t be able to keep a close eye on two restaurant locations, especially if they’re far away from each other. You need someone you can rely on to run things for you and keep you up to date.
You can also rely on your existing staff when training new employees. Ask new hires to shadow senior staff so they can learn from the best.
4. Purchase furniture, equipment, and supplies
Opening a second restaurant location comes with many costs, mostly from furnishing and equipping your new restaurant.
Measure the space carefully before you order any appliances and come up with a seating strategy that can help you maximize the space and improve the customer experience.
The good news is that when it comes to supplies, you can probably use the same suppliers unless your new restaurant is located in another state entirely.
5. Obtain the permits and licenses you need
Without the proper licenses and permits, you won’t be able to open and operate your new restaurant location.
Once again, if you’re operating in the same area as your first location, you’ll probably need the same permits and licenses. The only exception is if you’re planning on introducing something new that requires a permit, such as live entertainment.
6. Get the technology your expanding restaurant needs
When putting together your restaurant business strategy, don’t forget about technology and tools that can help you grow and expand your restaurant, such as an online ordering system for accepting takeaway orders.
If you use the free online ordering system from GloriaFood, we’re happy to let you know you can cover a new restaurant location in just a few clicks by enabling the multi-location dashboard.
All you have to do is navigate to your restaurant dashboard, click on your restaurant name at the top, and select “Enable multi location dashboard” from the drop-down:
After filling in some information about the new location, such as the brand name and address, as well as the restaurant owner/manager’s name and email, you will be redirected to your multi-location dashboard.
From here, you can manage the menu, promotions, and services for every location, add more locations as you expand, and get an overview of each location’s sales.
To learn more about setting up separate menus for each restaurant location, check out this video tutorial:
To enable customers to place orders from any location, display separate Order buttons, like on this demo chain website, by simply copying and pasting the personalized codes on your website.
7. Write a marketing plan compiling your restaurant expansion strategy
When opening a second restaurant location, take the time to plan how you’re going to promote it, from writing the Opening a New Location announcement to attracting new customers and convincing them to come back.
From having marketed your first location, you are probably familiar with what works and what doesn’t. Use that as a guide, but take it with a grain of salt, since what worked for your first location might not work for the second.
If you’ve already enabled the multi-location dashboard of your GloriaFood restaurant account, it means you now have access to all of our marketing features for all your restaurant locations:
- Kickstarter module to encourage first orders for your new location by printing an irresistible discount on your flyers and inviting existing customers to place an order.
- Promotions module to target both new and recurring customers with attractive food offers displayed at the top of your menu for whichever location you choose.
- Autopilot module to send targeted emails to customers who haven’t ordered in a while, only ordered once, or have started and abandoned their cart.
Final Thoughts
Opening a second restaurant location can be equally scary and exhilarating. If you are convinced that this is the right time for you, a new location can increase revenue, bring in more customers, and solidify your brand.
With the right plan, staff, and technology, your second location can become just as successful as your first.
