How to analyse potential locations

To find the right home for your hospitality business, you need to become a detective in your target areas. The single most important action is to go there in person—multiple times—to observe and get a genuine feel for the place. Create a simple scorecard with the key factors listed below, and use it to compare potential locations objectively. Relying only on online property listings is a common mistake; real-world observation is what will give you the confidence to make the right choice.

Key Factors for Your Location Scorecard

Your perfect location will be a balance of these five critical elements. It’s rare to find a spot that scores 10/10 on everything, so you need to decide which factors are most important for your specific business idea.

1. Footfall and Visibility

This is about how many people pass by your potential premises. High footfall is great, but it needs to be the right kind of footfall. Are the people passing by your target customers? A busy commuter route might have thousands of people, but if they are all rushing for a train, they won’t stop at your boutique hotel or relaxed-dining restaurant.

• High Street: Excellent visibility but comes with higher rent and more competition.
• Side Street: Can be a "hidden gem" and cheaper, but you will have to work much harder on marketing to attract customers.

2. Guest Accessibility and Transport Links

How easy will it be for guests to get to you? Don't just think about your ideal customer; consider all potential visitors.

• Parking: Is there a dedicated car park, on-street parking, or a public car park nearby? Lack of parking can be a major deterrent.
• Public Transport: Check for nearby train stations, tube stops, and bus routes. Good transport links widen your potential customer base significantly.
• Walkability: Is the area pleasant and safe to walk around, especially at night?

3. Local Competition

Don't be immediately put off by competitors. Sometimes, a cluster of similar businesses (like a street full of restaurants or a neighbourhood known for its independent hotels) can create a "destination," drawing more people to the area overall. Analyse the local businesses:

• Direct Competitors: Who is doing exactly what you plan to do? Look at their pricing, quality, and online reviews to find a gap in the market.
• Complementary Businesses: Are there businesses nearby that could help you? A hotel next to a popular wedding venue, or a cafe near a theatre, can create a brilliant partnership.

4. Neighbourhood Character

The vibe of the area must match the brand you want to build. If you are opening a high-end, exclusive cocktail bar, a location in the middle of a student-focused nightlife area might not work. Spend time in the area to understand its personality. Is it a bustling tourist hub, a quiet residential area, a creative quarter, or a corporate business district?

5. Costs and Practicalities

Finally, the numbers have to work. Two streets can have vastly different costs. Be sure to research:

• Rent and Business Rates: These will be your biggest fixed costs. Check the rateable value of a property on the Valuation Office Agency (VOA) website.
• Premises Condition: How much work will the building need? Factor in the costs of any renovations or fit-out.

How to Conduct Your Research

1. Start Online: Use Google Maps (including Street View), local council websites, and commercial property portals to create a longlist of potential areas and specific properties.
2. Visit in Person (The Golden Rule): This is the most important step. Visit your shortlisted locations on a quiet Tuesday morning and again on a busy Saturday evening. See how the atmosphere, noise levels, and type of crowd change.
3. Count the People: Sit in a local cafe and physically count the number of people who walk past a potential unit during a 30-minute period. It’s a simple but powerful way to gauge real footfall.
4. Talk to Other Business Owners: Chat with people running non-competing businesses nearby. Ask them what the area is like, when the busy times are, and what the local community is like. You’ll get invaluable, honest insight.

Pro Tip: There is no single "perfect" location, only the location that is right for your business. A destination restaurant that people will travel for has very different needs to a coffee shop relying on passing trade. Be clear on your concept and who you are serving, then find the location that helps you do that best.