Location often dictates success or failure of restaurants

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In 2009, David Alkaher, owner of Virtu Restaurant, decided to close his Sienna Grill & Bar at St. Paul and Andrews streets. The sluggish economy was bringing fewer people to the downtown location, and he was busy managing Virtu, which was thriving at Corn Hill Landing, with its waterfront view.
 
"The economy started to take its toll down there," Alkaher says.
 
It is no secret that a restaurateur pays close attention to location to ensure that the venture is a success.
 
Anthony Daniele, co-owner of Bazil Restaurant, says location is the deciding factor in whether any retail business succeeds or fails.
 
When choosing a property, his family-which also owns and operates Mario’s Italian Restaurant and Catering and the Crab Shack, a seafood restaurant-always looks to be close to an interstate for good customer access. Bazil Restaurant is on Empire Boulevard in Penfield, easily accessible and in a growing area, Daniele says.
 
A good location, he says, will give a restaurant access to great numbers of people and be convenient. Bazil Restaurant mostly draws customers from 10 to15 minutes away.
 
"People do not want to drive a long way," Daniele says. "For the most part, people aren’t going to drive by 30 of your competitors to get to you."
 
National chains build only in superpremium, high-traffic locations for that reason, he says. Traffic count-how many cars drive by per day, on average-is a key statistic.
 
David Crumb, associate professor of hospitality and service management at Rochester Institute of Technology, says location is the first factor that restaurant owners should focus on.
 
Building in a diluted market, where there are too many competitors, can ruin your business, he adds.
 
Michael Calabrese, owner of Good Luck Restaurant on Anderson Avenue, says success in a business requires that everything come together, including location, food, drink, decor.
 
"You can’t just have one thing that’s working; everything has to work together," he says.
 
A restaurant’s accessibility-being visible and in a place people tend to go frequently-is very important when researching and deciding on a site, Crumb says.
 
"It is a real tightrope walk," he says. "The restaurant business depends on many, many variables."
 
Research is very important, Crumb says. If the features of a location change within the first few years, it can suddenly become very different.
 
"That is where the research comes in, to try to visualize what is going to happen there in the next 10 to12 years," he says.
 
Highway construction can have an impact on a business, Crumb says, citing West Ridge Road as an example, where the addition of a median altered traffic patterns and access.
 
Another factor can be the reputation of the area, whether it has a high crime rate or some public relations problem, Crumb says.
 
A destination location is the only exception to the rule of accessibility, when people are willing to drive to get a unique product, Daniele says.
 
Crumb says some restaurants are very successful despite their remote locations. Through advertising they have become destinations, and people want to go there for the drive or because it is a tradition, he says.
 
Calabrese chose the location for his restaurant based on its unique interior space. Originally Fabrics and Findings, the space has high ceilings, wooden beams and a wooden floor.
 
"It doesn’t look like any other restaurant," he says.
 
He had an eye on the space, and when Fabrics and Findings went out of business, he seized the opportunity.
 
Calabrese especially liked the location, just outside of downtown, and the neighborhood feel while still being central. Good Luck gets customers from all over the county.
 
"Picking a location is an emotional decision," Calabrese says. "It either feels right, or it doesn’t."
 
Alkaher was sold on Virtu’s location as soon as he saw the view the space offered. His waterfront location draws people downtown to eat, which can be a challenge for restaurants, he says.
 
"The waterfront is a draw, without a doubt," Alkaher says. "Our business just about doubles as soon as the summer gets going."
 
The space offers 100 seats overlooking the Genesee River, with a view of downtown whether you are seated inside or outside, Alkaher says.
 
He says the city’s commitment to developing the waterfront has made it possible for his and other businesses in that area to succeed.
 
Waterfront property affords a competitive advantage over other properties because it attracts people to your location, Daniele says.
 
"People like to be near the water, so it’s the proximity that matters more than the seating outside," he says.
 
Daniele says people come to Bazil Restaurant to be near the water on Irondequoit Bay, but 80 percent of them will choose to sit inside for a variety of reasons. Since Rochester has only a few months of good weather, a lot of restaurants on the water do not succeed, he adds.
 
Crumb says, "To be successful, you may build the best place in the world, but if it isn’t placed right, it might be a flop."

Laura Brothers is a Rochester Business Journal intern.

7/29/11 (c) 2011 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail [email protected].