BUSINESS STRATEGY & GROWTH • August 29, 2016
1 minute Read
Delicious food, efficient staff, a solid business plan and a lot of luck. These are the basic ingredients of a successful new restaurant. But when it comes to becoming an entrepreneur in the food industry, location is key. There are markets where demand for new restaurants is higher than others.
NerdWallet, a personal finance site, analyzed 530 cities in the U.S. with a population of at least 50,000 to see where a new restaurant would most likely succeed. They looked at population growth and density, median annual income, income growth, sales per resident and number of new eateries.
Here are the top cities they discovered for opening a new restaurant:
1. Cedar Park, Texas
The greater Austin area is one of the fastest-growing metropolitan regions in the country. Seeing a lot of that growth is Cedar Park, one of Austin’s suburbs. In fact, the total number of restaurants doubled from 2010 to 2015 due to a demand for new eateries. This city provides opportunities for restaurant owners to open one-of-a-kind establishments.
2. Mission, Texas
With such high motor traffic on the Interstate 2 corridor, the city of Mission is seeing many new restaurants pop up along the highway. Lots of cars means lots of people, so many new chains and restaurants are looking for a new home in Mission.
3. Franklin, Tennessee
Famous chefs from around the world have moved their operations to the city of Nashville, causing an environment of fierce competition. Because of this, the study found that new restaurants are spilling out into the Nashville suburb of Franklin, where people tend to eat out more and the median income is $60,000.
4. Smyrna, Georgia
Smyrna used to be just a small suburb, but recently experienced a booming population increase of nearly 30 percent from 2000 to 2012. More people demand more food, which means new restaurants are opening at a rate of about four per month. The city is also updating to a more modern feel, attracting residents who enjoy trying new restaurants.
5. Round Rock, Texas
One of the fastest-growing cities in the country, Round Rock is also part of the rapid-growth in the Austin area. Rapid growth creates the perfect environment for new restaurants and chain expansions.
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