Analyzing The Market's Demographics For The Restaurant

DENTIFYING DEMOGRAPHIC GROUPS

•Average age

•Marital status

•Average disposable income

•Average household size

•Home ownership

•Education level

•Average rent and prices of houses, condominiums, and apartments

•Population trends

•Food and beverage sales

•Major employers and industries

DETERMINING MARKET SATURATION The number of restaurant seats in a location seems high compared to its population, the market may well be saturated.

CONSIDERING TRANSIENT VERSUS PERMANENT POPULATIONS

The transient population is made up of the total number of people who live elsewhere but come to the area to work, shop, visit various recreation and cultural centers, and attend sports and entertainment events.

BURNING SHOE LEATHER

Visit the area or location you’re thinking about to observe the traffic volume; the population density; the types of residential homes and the kinds of cars parked in the garages or on the streets in front of them; the types of commercial, retail, and industrial businesses; and the types of restaurants in the area.

From: Roger Fields. “Restaurant Success by the Numbers”.