Toronto – a foodie’s delight, with its vibrant and innovative culinary scene. The city has a diverse population representing the four corners of the planet, so you are truly spoilt for choice when it comes to somewhere to dine out. Canada’s largest city offers an exciting yet challenging environment for anyone with dreams of opening a new restaurant. Doing the right homework and making sure that the right location is chosen for a new venue will be crucial to a restaurant’s success. In this article we provide you with some useful advice on how to do just that…
Rent and Operational Costs
One of the main factors dictating where you locate in the city will of course be cost. Toronto’s real estate market is competitive, and rental prices can vary drastically depending on the neighborhood. Balancing the potential revenue against the cost of rent is vital, for example…
- High-Rent Areas: Locations like Yorkville or the Financial District come with high rent but offer a premium clientele willing to spend more.
- Affordable Alternatives: Explore neighborhoods like Danforth or The Junction, which may offer lower rents while still providing access to a solid customer base.
The Target Market
Before you start to scout for restaurant locations, it’s essential to understand who your target market will be. Are you targeting young professionals, families, tourists, or students? Toronto’s neighbourhoods are diverse, so doing in depth research to where your chosen demographic is will be key to success, for example…
- Young Professionals: Perhaps investigate neighborhoods like King West or Liberty Village – these are known for their trendy, vibrant atmosphere and concentration of young urbanites.
- Families: Neighbourhoods like The Beaches or High Park are popular with families and offer a more relaxed, community-oriented environment.
Tourists: Of course, the downtown core, particularly near attractions like the CN Tower or Eaton Centre, is ideal for tapping into Toronto’s bustling tourist traffic.
Foot Traffic and Visibility
High foot traffic areas across the city provide great visibility and can be goldmines for restaurants. However, it’s not just about the number of people passing by – it’s about the right kind of people you want to target. Busy city neighbourhoods in the daytime can slow down in the evening; that’s why you should visit potential locations at different times of the day to gauge the flow of traffic and more importantly to see if your target audience is there. For example…
- Busy Intersections: Yonge and Dundas, Queen Street West, and Bloor Street offer high visibility, but come with a premium price. Foot traffic and the demographics of people do change in some of these from day to evening.
- Emerging Areas: Perhaps consider up-and-coming neighborhoods like Leslieville or Roncesvalles, which are still growing in popularity but may still offer more affordable rental options.
Competition and Complementary Businesses
You may have the urge to be in the thick of it, but while some competition is healthy, setting up your restaurant in an area already oversaturated with similar eateries might be a challenge. Think out of the box – consider perhaps areas where your restaurant can complement existing businesses. For example…
- High Volume Restaurant Areas: Areas like the Entertainment District have a high concentration of restaurants; it’s tempting to try and tap into the market here, but could your restaurant concept compete with other venues and stand out enough to thrive?
- Complementary Businesses: Being near complementary businesses, such as boutiques, art galleries or theaters, could drive more traffic to your restaurant. For example, the Distillery District is a hub for art and culture, making it a perfect location for unique, niche dining experiences.
Accessibility and Parking
It appears a great location for your new restaurant, but how easy is it for customers to access it on foot, public transport, or park their cars? Toronto is one of those cities where accessibility and parking can either make or break a business.
- Public Transit Access: Being located near to subway stations, streetcar lines, or major bus routes will considerably help increase your restaurant’s accessibility for customers.
- Parking Availability: In less transit-friendly neighbourshoods, ample parking availability needs to be in place to make sure customers are not put off visiting you.
Real Estate Expertise
No one knows the Toronto neighbourshoods better than a seasoned commercial real estate professional. They will have invaluable knowledge of the city’s culinary scene and can help guide you in the right direction to choosing the best location for your new restaurant.
- Market insight: An experienced Toronto commercial real estate professional will have an in-depth knowledge of which areas of the city to avoid and which areas are up and coming.
- Contacts: A Commercial Real Estate professional will be more likely able to match your restaurant requirements with those of businesses for sale across the city.
Conclusion
Finding the best location for your new restaurant in Toronto needs a multifaceted approach where you will need to define what you have to spend, your target market, the existing competition, accessibility, and the community. By doing thorough research and using the services of a commercial real estate professional, you give yourself the best possible chance of finding the perfect spot.
CHI is dedicated to keeping up with local and national trends in the Restaurant Industry to help serve our customers better and keep them one step ahead. If you are interested in opening, purchasing, or selling a restaurant CHI Real Estate can help. Get in touch with our team today.