Oğuz Benice: Bilkent University School of Tourism & Hotel Management

Designing a
Restaurant
Atmosphere
Ouz Benice
Bilkent University
School of Tourism &
Hotel Management
DESIGNING A RESTAURANT ATMOSPHERE
Importance of a Good Atmosphere

People are attracted to a restaurant by
more than just good food.
It is a place to see and be seen, not just a
place to eat.
Equally important is the way people feel
while in the restaurant.

Atmosphere is made up of everything
that makes an impression on people.
The building design, decor, interior color
scheme, texture of the walls, service, and
the food create the atmosphere.

People want a dining experience, an
escape from problems and everyday
routine.
The atmosphere should project a feeling
of friendliness and comfort, be attractive
and interestingly different..
The atmosphere is remembered long after
the meal is finished.
Sight
The perception of sight is a question of
acceptability to the eye.
Sight perception involves color, lighting,
harmony, contrast, order, and space.
A waitress with a dirty uniform and
grease smears on the menu are sights
unacceptable to the customer's eye.
Smell
Smell involves both pleasant and
unpleasant odors.
Smells can positively contribute to the
atmosphere. The aroma of fresh brewed
coffee, oven-baked bread, fresh cut
flowers, and a pine scented breeze can
heighten the appetite.
Negative smells involve kitchen odors,
body odor, garbage
Hearing
The noise level of conversations, serving
staff, kitchen sounds, and music affect
the atmosphere.
The level of noise acceptable to the ears
is a function of age.
The older the age group, the less the
intensity of noise which is acceptable.
Temperature
A comfortably warm room and hot food
portrays a feeling of high quality,
elegance and a slow leisurely meal.
Fast-food restaurants needing high
turnover to earn a profit usually keep the
dining room temperatures cooler in the
winter to encourage people to eat faster.
Tempo
Atmosphere is affected by the tempo of
service, length of time to produce the
meal, and the time given to eat the meal.
The tempo of the dining experience
should correspond to the image of the
restaurant.
Normally, the tempo in a luxury
restaurant is more leisurely than the
tempo in a fast-food restaurant.
Landscaping
Landscaping helps provide the setting
and atmosphere for the total dining
experience.
A well maintained and landscaped
exterior attracts customers.
Exterior Design
The function of the exterior design is to
attract customers and invite them in to
eat.
The exterior design should reflect the
character of the locality, but be different
enough to attract attention.
Exterior Design
People are naturally suspicious and
hesitant upon entering a new restaurant.
They are looking for some indication,
either positive or negative, as to the
quality of the restaurant before they
enter.
Exterior Design
Signs, parking area, landscaping, design
and color of the building, windows,
curtains, view of the inside, lighting,
flowers or plants, and type of door will all
be closely scrutinized.
Exterior Design
Fine Dining Exterior: May suggest
exclusiveness with a traditional faade
and a modest sign. The emphasis is on
elegance and good taste. Windows
should be usually draped to provide
privacy. The main feature of awareness is
an impressive entrance and a
sophisticated menu display and may be,
staff in attendance.
Exterior Design
Caf Exterior: Large windows to show the
style.
Exterior Design
Restaurants catering to children and
young families often use bright colors on
the exterior to attract attention. Bright
colors reflect a happy, friendly,
comfortable feeling, and indicate that
families are welcome.
Exterior Design
Quick Service (fast food) Exterior:
Entrance should be large and open, as
well as the windows to create a visual
link between the exterior and the counter.
(because chain restaurants rely on brand
identification).
Signs
A good sign should indicate at least four
things. First, it should indicate "this is a
restaurant.
Signs
Second, a good sign should indicate the
type of food and service that is being
offered.
Signs
A third piece of needed information is the price
range. The sign should not necessarily specify an
exact Turkish Liras or dollar price range, but by
means of its style, color, size, and shape, it
should indicate an approximate price range. The
use of the words "cafe," kebap," "restaurant"
each project a different image and price range.
Signs
Families often eat together. The fourth
item a sign should indicate is the type of
customer the restaurant caters to.
Families need to know if children are
welcome.
Signs
The sign should be chosen carefully. The
style, design, and color of the sign
should follow the same theme as the
interior and exterior of the restaurant.
Signs should be simple with a minimal
amount of wording.
The letters should be large enough to be
read from at least 50 m. The most
effective signs are simple and brief.
Signs
In locations where many signs are
competing for viewer attention, the
design becomes even more important.
Signs should be eye catching, and
unique.
Signs
If there are eight rectangular signs in a
200 m. stretch of road, the chances are
small that any one of them will be read.
But one oval sign among seven
rectangular ones will draw attention to
the oval sign.
Attention can be drawn to a sign by
varying the size, shape, color,
construction material, height, lighting, or
style of printing.
Exterior Lighting
Proper outside lighting can add texture,
charm, and beauty to a building and
landscape, can make the restaurant more
eye-catching and can invite customers
in.
Exterior Lighting
The intensity and style of light fixtures
must also harmonize with the desired
atmosphere.
Its placement needs careful
consideration.
Exterior Lighting
Signs, architectural highlights, entrance
ways, and parking areas need to be
especially well lighted.
At night lighting should provide safety by
illuminating steps, sidewalks, and other
hazards.
It should also provide a sense of security.
Entrance Way
The entrance to the restaurant should be
unmistakably visible to even the casual
passerby.
There should be absolutely no doubt as
to where the entrance door is located.
Entrance Way
The entrance area is the customer's first
and last view of the interior.
People will naturally be critical on
entering the restaurant for the first time.
They will notice the type of decor, the
windows, walls, floor covering, lights,
pictures, and the inside view.
Entrance Way
When the dining room is full, the entrance
area serves as a waiting area, so carefully
plan and maintain the entrance area.
Lighting
The use of natural light during the day is
always preferable:
This saves money, has psychological benefits
and allows color discernment.
Lighting
The use of natural light during the day is
always preferable: This saves money, has
psychological benefits and allows color
discernment.
Artificial lighting is usually the least planned
element of the atmosphere A restaurant
needs varying levels of light intensity.
A restaurant needs varying levels of light
intensity.
Lighting
Bright lights are needed by the staff for
cleaning the dining area.
The breakfast trade desires a moderately high
level of lighting to keep them awake and
allow for the reading of the morning
newspaper.
Lighting
A high level of lighting and a moderate level
of lighting at noon stimulates a fast turnover
of customers.
A low intensity of light creates a leisurely,
intimate atmosphere conducive to evening
dining.
To create these atmospheres, use a rheostat
to control the lighting.
Lighting
Young people are attracted by low levels of
lighting.
As people grow older, their eyesight generally
deteriorates and brighter lighting is required.
Lighting
Low levels of lighting are generally
associated with higher prices and high
quality service.
Candlelight develops an excellent mood and
intense atmosphere.
The red flame enhances and flatters people's
appearances, and makes most foods appear
more appetizing.
Lighting
Lighting can create the mood of a space.
Direct lighting (halogen bulbs) is effective for
food display areas such as salad bars and
sea food
Indirect lighting (reflection to wall or ceiling)
creates small shadow patterns that feel
friendly.
Lighting
When people look good and feel attractive,
they tend to return for repeat visit.
Effective lighting most crucial element is
balance.
If a room is too bright, too soft, too deeply
shadowed, or too homogeneously lit, it wont
feel comfortable.
Colors
Dining room color combinations can make
people hungry, depressed, happy, agitated,
eat fast, or eat leisurely.
Changing the color scheme of a dining
room can noticeably increase (or decrease)
business.
Color can be used to change the shape and
add interest to the rooms.
Colors
Green & Blue: Cool colors. Calms and
relaxes excited people.
Makes time seem to pass quickly. Tends to
encourage conversation, most suitable for
small areas, hot climate and daytime use.
Sometimes negative affects on food display.
Sometimes negative affects on food display.
Colors
Red: Suggests passion, excites, stimulates,
can be used for food display, enhances the
skin.
Should be used in small areas because
makes the room smaller. Red & Black is a
classical combination.
Enhances the appetite. Makes time seem to
pass more slowly.
Colors
Yellow: Cheerful. Feeling of warmth. Boosts
morale.
Suggests sunlight, particularly appropriated
for breakfast areas.
Colors
White: White walls in fine dining areas are
psychologically negative and uninviting, but
colored walls stimulate food sales.
White is very effective when harmonized with
other colors.
White walls encourages turnover in fast food
units.
Colors
Violet & Purple: Tends to lend elegance and
sophistication. Royal.
Orange: Friendly, Brown: Relaxing, Gray:
Depressing
A single solid color in a room is monotonous
and boring. Use a mixture of warm and cool
colors. Two opposite colors on the color
wheel, such as green and red or yellow and
violet results in a very pleasing combination.
Tables & Chairs

Since they are the first things noticed by the
customer upon entering the front door, tables
& chairs must reflect the desired theme and
atmosphere.
The customer also expects comfort, quality,
and beauty in furnishings.
At the same time, the restaurant owner wants
furnishings that are durable, reflective of the
restaurant's character and theme, low cost,
and space saving.
Tables & Chairs

The type of seating and the layout of the
tables and chairs are just as important in
creating the proper atmosphere as the
softness of the seats.
Proper positioning of tables can mean more
efficient use of dining room space.
By positioning the tables in diagonal rather
than square formation, more seating per
square foot can be obtained.
Tables & Chairs

Round Tables are very popular for fine dining
room because it allows guests to converse
with all other guests seated at the table
without difficulty.
Square & Rectangular tables can
accommodate groups, when the tables are
pushed together.
Fixed banquette seating gives a sense of
privacy.
Size & Shape of Dining Rooms

Type of
Restaurant
Restaurant
Seating
(m)
Servery
or Bar
(m)
Food
production &
storage (m)
Cloakroom
Toilets, etc
(m)
High standard,
Traditional Restaurant (80 seats)
2,0
1,2
0,9
0,3
Caf, Tea-Room
Mid-Market (100 seats)
1,6
0,2
0,6
0,2
Cafeteria, Counter,
Self Service (140 seats)
1,4
0,4
0,4
0,15
Popular family
Restaurants (100 seats)
1,2
0,4
0,2
Fast-Food unit
(50 seats)
0,8
0,8
0,3
0,6
Tables & Chairs

Type of seating used depends upon your
needs and space optimization:
Type of Dining
Room
Schools Cafeteria
Tables
for 2
30 %
Tables for 4 or
more
70 %
Business
Restaurant
60 %
40 %
Family
Restaurant
25 %
75 %
Hotel Restaurant
60 %
40 %
Cafe, Tearoom
80 %
20 %
Table Settings
The silverware, dishes, glasses, napkins, tablecloths, and
salt and pepper shakers must enhance the dining room
atmosphere and show the overall quality of the operation.
(Napkins Linen can still give the feel of fine dining without
the extra expense of table cloth).
An old fashioned silverware pattern would destroy the
atmosphere created by modern decor. The silverware
should feel and look right when held in the hand.
Remember, while sitting at the table the customer comes
into the closest contact with the feel of the atmosphere.
Remember, while sitting at the table the customer comes
into the closest contact with the feel of the atmosphere.
Curtains and Window Shades

Curtains and window shades are both functional and
decorative. They offer a sense of privacy and protection
from the sun. Available in many textures, patterns, and
colors, window treatments combine to give a feeling of
warmth and coziness.
Fit large windows with insulating curtains to conserve heat
in the winter and lower the cost of air conditioning in
summer.
They should complement the architectural style and theme
of the restaurant and can relieve the monotony of the shape
of the room. The color, style, and material of curtains must
enhance the atmosphere, but not draw undue attention.
Plants and Flowers

Flowers and plants used as decoration in restaurants can
add color and variation. Fresh-cut flower arrangements
used to be commonly placed on tables as decoration. They
are seldom used now, but can bring a personal touch of
freshness if the flowers are simply arranged and regularly
replaced before wilting.
Large potted plants are becoming increasingly popular both as
decoration and as a screen to divide a room into smaller,
intimate areas. They also absorb sound to quiet a noisy room.
By careful selection and arrangement, flowers can blend into
the decor and add to the total feeling of the room without
becoming the center of interest. The most tasteful
arrangements use only two or three bold colors and either
blend or contrast them with the color scheme of the room.
Walls
Wall accessories (pictures, prints, photographs, sculpture,
mirrors, clocks, antiques) and other accessories can contribute
and enhance the overall atmosphere of a restaurant. When
acquiring accessories, the shape of the accessory, in relation to
the wall or area in which they will be displayed, must be
considered. A cluster of small accessories would be more
favorable on a small wall than one or two large decorative pieces.
The accessories should not call attention to themselves, but
relate and contribute to the general theme of the restaurant. They
can successfully add to the general atmosphere if they contain
the color, pattern, and subject of the total design scheme.
The number of accessories to use depends on the type of
atmosphere desired. To reduce theft, securely bolt down all
pictures and decor items.
to be continued
Walls
Painting is the cheapest way to decorate walls, but the surface
must be in good condition before painting. When painting, several
different wall finishes are available (tippling, scumbling).
Wallpaper can liven up a room and change its proportions. It is
also a good way to cover rough, cracked walls. It can also unify
the theme of the restaurant. Large rooms appear at their best
when using wallpaper with large patterns. Small patterns should
be used in small rooms. A room with heavily patterned wallpaper
will appear more crowded and less intimate than one with solid
color walls. For this reason often only one wall is papered while
the remaining walls are painted.
Wall coverings: Wood is an extremely versatile and varied wall
covering material. The inherent beauty of wood creates a
luxurious, warm atmosphere. Tile, cork, terrazzo, draperies, brick,
stone, and plaster are other wall coverings that can change the
feeling of a room and set the desired atmosphere.
Ceilings
Historically ceilings were very ornately decorated with intricate
patterns and designs. Today ceilings are often neglected, large
blank surfaces. However, much can be done with ceilings to
complement the theme and decor of a restaurant. The previous
discussion on wall treatments equally applies to ceilings
Height: 2,5m (minimum), for small areas, creates sense of
oppression in large areas. Difficulties may arise in ventilation and
air distribution. 3m. Appropriate for small to average size room.
3,5m and more, produce impersonal space, may give a sense of
grandeur and occasion (banquet)
Create interest in the ceiling by painting patterns, ovals, and other
shapes on it. An especially effective technique is to repeat the
floor pattern on the ceiling. A simplified version of the carpet
design can be painted on the ceiling. This has a unifying effect
and strengthens the atmosphere.
Floors
Everyone entering a restaurant has direct contact with the floor.
Customers consciously look at the floor to see how clean it is.
The color, texture, material, and design of the flooring must
complement the total atmosphere of the restaurant. It must blend
in with and add to the theme of the restaurant without calling
attention to itself.
Carpeting is widely used today in all types of restaurants. The
addition of carpeting tends to upgrade a restaurant and attract a
higher income clientele. It adds warmth and a sense of luxury as
well as deadening sound.
Carpeting will usually have a more comfortable feeling if it is of a
darker color than the surrounding walls. In general, the color of
the carpet and walls should be from the same color family.
to be continued
Floors
Vinyl floor tiling is available in a myriad of styles, sizes. Advantages of
resilient tiles are its durability, economy, ease of installation, and
simple maintenance. Many fast-food hamburger chains use ceramic
tile flooring because of their easy maintenance and extreme durability.
The noise from walking on ceramic tile creates an exciting
atmosphere. The disadvantages of ceramic tile are its initial cost and
the commitment to one type of flooring for the life of the building.
Terrazzo is a flooring material made from chips of marble, onyx, or
other rock embedded in cement or certain chemical compounds. It is
usually poured in place and ground and polished to a uniformly
textured surface. A terrazzo floor is extremely durable and permanent.
It requires very little maintenance. Terrazzo is ideal for
heavy traffic areas and where customer turnover is high. Many fastfood restaurants have terrazzo floors.
to be continued
Floors
The natural beauty of wood flooring offers many, variations in
color and pattern. Although wooden flooring requires more
maintenance and is noisier than other types of floor coverings, its
beauty can be a major contributor to developing the atmosphere.
Wood flooring is available in four forms: strip, plank, parquet, and
fabricated wood blocks. Wood flooring can be finished in different
ways. They can be stained, bleached, streaked, varnished,
waxed, or painted.
The durability of brick, slate, and stone makes their use as
flooring well suited for high traffic areas such as entrance ways.
The charm of such flooring materials can add measurably to the
atmosphere. As in tiling and terrazzo flooring, customers'
footsteps will be more noticeable than on carpeting. Also the
permanence and initial high cost must be considered.
Acoustics
The sounds of a restaurant are part of its atmosphere. Kitchen
noises, customer voices (talking, laughing), traffic noises, and
dish bussing all add to the atmosphere.
Noise in a dining area is not always undesirable. People who
work in quiet places, or are lonely, may seek out noisy
restaurants. Business people will sometimes seek a noisy
restaurant to conduct business so they will not be overheard.
A noisy surrounding can create a special atmosphere which sets
people at ease and stimulates people and makes them eat faster.
However, before changing the sound patterns of your restaurant
know your customers' needs.
Music
A good music system, proper musical selection and proper
volume have a positive effect on the success of a restaurant. An
inadequate sound system can be a major factor in the failure of a
restaurant .
The correct type of background music (slightly louder than the
ambient sound) puts customers in a good mood and helps make
the staff more relaxed and efficient.
Foreground music, loud enough to be easily heard over the
ambient sound of the room without interrupting conversation, is
used in most type of cafes. Recreational music, loud enough to
dominate the atmosphere of the room is used for bars and
discotheques. The higher alcohol sales in a restaurant, the
greater the customers toleration and need for louder music.
Menu
The menu cover and contents should reflect the design and
style of the restaurant. The design of the menu, its details, the
style of type used, and the impression it creates all set the
atmosphere.
A small, simple menu in a color that harmonizes with the decor is
desirable. It should set the feeling of the restaurant. Customers
are not impressed by dirty, dog-eared menus stuck together with
adhesive tape.
Menus should be simple and easy to read. They should carefully
describe the food served. A short but descriptive statement about
major items served can stimulate the appetite and measurably
increase the guest check.
Human Factors
Architecture and decor are only part of the elements making a
successful restaurant atmosphere. A warm, friendly atmosphere
calls for warm, friendly service.
The age and sex of customers contributes to the atmosphere.
People like to be served by people their own age. A
restaurant with predominantly male customers would be
advised to employ mostly female service personnel. Likewise,
female customers usually prefer male service personnel.
The dress and appearance of customers and staff are also
important elements of atmosphere. Luxury restaurants may
require customers to conform to a "coat and tie" dress code. This
maintains a high quality of visual appearance and formality to the
atmosphere. Staff uniform should continue the theme of the
restaurant. (it also help to distinguish staff from customers and is
a symbols of staff hierarchy in the restaurant).
Restaurant Design Guidelines

Existing Location: The key to designing this location on a budget
is to use existing features and avoid extensive remodeling. Do not
be concentrated about doing something unusual with every
surface of the dining room service.
Concentrate on one item or area that could be developed into a
focal point, spend some money there. Track lighting can be used
to emphasize the chosen local point. Focal points could be a
grouping of plants, a wall with various types of art, an exposed
kitchen.
A new location can be designed with a similar philosophy. The
difference is that the restaurant owner must create the feature
that will become the focal point.
to be continued
Restaurant Design Guidelines

Avoid exaggerations: One problem encountered with overdone,
exaggerated theme designs and decors, is that they can detract
from the food and the customers dining experience with a visual
overload. The customer may be initially impressed with the decor,
but in the majority of case, this is not what will bring them back.
Emphasize activities over design: Customers today desire casual,
open restaurants that allow them to see, and to be seen, to be
part of something fun and exciting. Rather than making the design
the main emphasis, many operators today make the activities
taking place in the restaurant the attraction. For this reason,
exposed kitchens have become popular. Customers enjoy seeing
cooks preparing their food. It gives them something to talk about,
something to look at
Size & Shape of Dining Rooms

Modern dining rooms must be comfortable and provide a
measure of privacy for individual tables. The use of high-backed
booths, different floor levels, lighting, acoustics, and color can
create the impression of privacy.
Seating capacity sometimes can even be increased by having
multiple floor levels. Tables can be closer together, yet because of
the different levels, not appear crowded. Mirrors can be used to
widen a long narrow room and eliminate the feeling that people
are eating in a hall.
The best food and a well thought out restaurant design cannot
make up for lack of cleanliness. A favorable atmosphere is quickly
destroyed by trash in the parking lot, a dirty floor, dirty silverware,
spotty glasses, greasy windows, and soiled menus .
to be continued
Restaurant Design Guidelines 1

Avoid exaggerations:
One problem encountered with overdone,
exaggerated theme designs and decors, is
that they can detract from the food and the
customers dining experience with a visual
overload.
The customer may be initially impressed with
the decor, but in the majority of case, this is
not what will bring them back.

Emphasize activities over design:
Customers today desire casual, open
restaurants that allow them to see, and to be
seen, to be part of something fun and
exciting.
Rather than making the design the main
emphasis, many operators today make the
activities taking place in the restaurant the
attraction.

For this reason, exposed kitchens have
become popular.
Customers enjoy seeing cooks preparing their
food. It gives them something to talk about,
something to look at.
Human Factors
People like to be served by people their own
age.
A restaurant with predominantly male
customers would be advised to employ
mostly female service personnel.
Likewise, female customers usually prefer
male service personnel.
Human Factors
The age and sex of customers contributes to
the atmosphere.
The dress and appearance of customers and
staff are also important elements of the
atmosphere.
Human Factors
Luxury restaurants may require customers to
conform to a "coat and tie" dress code.
This maintains a high quality of visual
appearance and formality to the atmosphere.
Staff uniform should continue the theme of
the restaurant. (it also help to distinguish staff
from customers and is a symbols of staff
hierarchy in the restaurant).
Guest Psychology
Albert Mehrabian & James Russel
(Cambridge) believe people have three feeling
factors:
1. Pleasure
2. Arousal
3. Dominance
Guest Psychology
The pleasure is a measure of how much we
like an environment.
The arousal is a measure of how an
environment excites us.
Dominance is the degree of control and
freedom.
Environment
The environment can be evaluated in three
factors offering a positive guest experience
while encouraging a quick turover of seats:
1. Ambiance
2. Social
3. Design
Music
A good music system, proper musical
selection and proper volume have a positive
effect on the success of a restaurant.
An inadequate sound system can be a major
factor in the failure of a restaurant.
Music
Supermarket shoppers spend much less time
in the store when loud music is played.
Slow music, rather than fast-paced music
keeps the guest in stores longer and increase
their purchase.
Care should be taken to ensure that the
volume in a fast food restaurant is sufficient
to result a fast turnover but not so much that
it prevents comfortable conversation.
Lighting
Animals and human beings are naturally
drawn to light sources.
Often tabletops are spotlit to suggest a
defined territory at each table.
To increase high turnover, a high level of
lighting and colored lighting can be used.
Smell
Most people are familiar with the bakery trick
of venting ovens to front-of-house areas to
attract guests and increase sales.
Good smell sells.
Pleasant smells enhance mood and promote
clear thinking.
Social Factors
Humans are social creatures.
In most cases, we prefer and actively seek out
the company of others.
Social Factors
Being alone in a public environment makes us
feel vulnerable and may cause us to hurry to a
new location where we will find the relative
safety of others.
We have all experienced the discomfort of
entering an empty restaurant and may have
chosen to move on to a busier place, telling
ourself that an empty place cannot be a good
one.
Social Factors
Overcrowded environments can also make us
uncomfortable, as crowding reduces our
ability to create and defend a personal
territory.
Restaurant chains are designing spaces that
play on our need for both social interaction
and secure territory.
Social Factors
Restaurants that divide dining areas up into
separate spaces can take advantages of the
human tendency to seek others.
Red Lobster uses many small dining areas to
create settings that look busy even when the
business is low.
Social Factors
The restaurant can open or close the sections
as needed to consolidate diners and use labor
more efficiently.
On the other hand, new arrivals will
appreciate an active dining space that
suggests popularity, a sign that the restaurant
is a safe place to eat.
Furnishing
Successful high-volume restaurants make use
of seats that are comfortable but not too
comfortable.
On the hard seating materials and seats with
upright backs can be designed to be inviting
to sit but discouraging to long stays.
Designing a
Restaurant
Atmosphere
Ouz Benice
Bilkent University
School of Tourism &
Hotel Management
SELECTING A RESTAURANT SITE
Discussion: where to put what?

Caf
Residential areas.
Fine dining room
Industrial areas
Ethnic restaurant
Central trade areas
Theme restaurant
Cafeteria
Quick service (fast-food)
Shopping centers
Recreation areas
Sports facilities
Bar - pub
Education facilities
Discotheque
Suburban areas
Importance of a Good Location

Small restaurateurs do not give enough
attention to site selection. Too often the
restaurateur places too much emphasis on
his personal experiences including
management and marketing skills a means
of attracting and holding customers. Those
skills are very important, but are only partial
substitutes for a good location. Without an
excellent location, chances of success are
very reduced.

Chain operations, on the other hand, have
considerable background information on
their customers (customer profile) and will try
to find locations where their establishments
will attract the same type of customers.

There are few restaurants in almost every
town in poor location and doing a
phenomenal business: these restaurants are
the exception.
Factor to Consider when Choosing

a Good Location
Market Segment
Competition
Visibility
Accessibility
Parking
Traffic count
Traffic generators
Area stability
Cost data & Lease contract
Other Factors
Market Segment
When considering a site for a new location, restaurateurs
must determine the market "segment" they are after and
attempt to locate in a place most convenient to that
segment. (see chapter 7: Restaurant Marketing)
A pizzeria might be located on a college campus because a
major segment of the market is found in nearby dormitories.
A major sports facility might attract a lively restaurant with a
limited menu concept that caters to pre-game and postgame happy guests.
Competition
A thorough analysis of the competition includes an accurate
count of all food service facilities in the trade area.
The dimensions of this area will vary depending on the type
of operation.
Your competitors should not serve similar food. If they are
serving similar food, they should have more customers than
they can handle, or they should be poorly managed, have
outdated decors which could mean that they are weak.
Visibility
If the customer cannot easily see the restaurant, then the
chance of selling him anything is very small.
Of primary concern is a restaurant's ability to attract
attention to itself with pleasing architecture, good lighting
and landscaping, and an appropriate sign. The restaurant
sign must be an integral part of the restaurant's total
marketing strategy.
Normally, visibility to passing automobile or bus traffic is the
major concern. However, for some types of operations, high
visibility is also needed to attract pedestrian traffic.
For most restaurants, the location or its sign should be
visible from 100 meters at least.
Accessibility
The location should be easily accessible. Arteries,
congested intersections, one-way streets and speed limit
over 60km/h could negatively affect accessibility .
Parking
The parking area, assuming the restaurant has one of its
own, is an indicator of the quality and image of the
restaurant.
The parking area should have separate and well marked
entrance and exit driveways. Parked cars are an indication
to potential customers that the food is good.
Assuming the restaurant has no parking lot of its own, the
trade area should have ample parking spaces.
Traffic Count
Traffic count is the number of vehicles that travel the road
adjacent to the location during a 24-hour period. Usually
20.000 cars per day is necessary to support most
restaurants.
In downtown, malls and shopping centers, traffic count is
also foot traffic (potential customers walking by ).
Traffic Generators
Traffic generators are the source of potential customer,
traffic within the trade area, such as large department
stores, malls, office buildings, schools, hospitals, many of
retail businesses .
Area Stability
Initial development: There are few open businesses, rent may
be low because the landlord is trying to fill empty spaces. The
operator must be able to cover operating expenses until reach
a break-even point. There are some trade areas isolated at
suburban that never get beyond the initial development stage.
Growth: Customer traffic and sales volume increase, empty
retail space begins to fill up. Rents are higher. If the economy
is peaking at the same time, rents may be artificially high.
Maturity (or Saturation): The area may still be profitable, but
they are too many restaurants competing for the same
customer. An advantage to this area: competition is known.
Except for re-concepting, there is little room for growth and
desire for new restaurants. Nearby areas begin to develop that
may lower the customer base and sales.
to be continued
Area Stability
Decline: Characterized by an increasing number of empty
locations, buildings in need of repair, no new businesses.
Business may still be adequate for some restaurants, but
customer counts are dropping because of growth in other
areas. Restaurants will begin re-concepting and closed
restaurants may reopen under new owners. Lower rents may
justify a location in this area.
Revitalization: Sometimes the area is so old it has developed a
personality that may draw customers again. Rents may be very
low.
Cost Data & Lease Contract

The Rent: the annual rent should not exceed 6% to 8% of
estimating annual sales. When estimating annual sales, use a
pessimist projection (25% below a realistic one). A rental factor
of 12% and more could put many restaurants out of business.
to compare the rent between different restaurants, calculate
the rent per m.
Term of the lease: includes the duration of the initial lease.
Usually 5 year term with two 5 year options. Normally the price
will increase for each additional term, based on the inflation
and market rate.
A non-compete clause protects the restaurant from the
landlord signing a lease with a restaurant that is similar and in
the same shopping center or same property.
to be continued
Cost Data & Lease Contract

Tenants finish-out allowance: In most case, when a tenant
must finish the construction of the restaurant, the landlord will
give the tenant a certain amount of money.
The monthly rent and the landlord and tenant finish-out are
generally negotiated together. If a lower rent is negotiated, the
chances of getting extra finish-out money are low. In general, it
is advised to have the landlord assume as much of the
construction cost as possible even at the expense of a higher
rent. This allows the restaurant to open with less capital.
Other Factors
The restaurant's image begins with its location. The character of
nearby buildings, streets, and businesses affects people's
perception of a restaurant. The locality will attract a certain type
of clientele and determine the price range, type of service, and
menu selection. The restaurant's theme should reflect the needs
of the people around it, and not be in conflict with its locale.
The most desirable location for an urban restaurant is on the
corner of a block. Here the restaurant enjoys greater visibility. An
entrance off each street is best.
Locating a restaurant on the right hand side of the road in the
direction of the main flow of traffic is desirable. There is a
psychological barrier to making a left turn across a stream of
traffic.
to be continued
Other Factors
Building a restaurant at a very busy crossroad is also to be
avoided. It is difficult to maneuver through traffic at a busy
intersection.
Locating a restaurant in an area with other restaurants
has merit. The existence of competition is not
necessarily bad. Potential diners are attracted to an
area that features good restaurants.
People often have no specific restaurant destination in mind and
are usually willing to try anything new and interesting.

Oğuz Benice: Bilkent University School of Tourism & Hotel Management

Uploaded by

Copyright:

Available Formats

You might also like

Oğuz Benice: Bilkent University School of Tourism & Hotel Management

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Oğuz Benice: Bilkent University School of Tourism & Hotel Management

Uploaded by

Copyright:

Available Formats

Designing a

DESIGNING A RESTAURANT ATMOSPHERE

Importance of a Good Atmosphere

DESIGNING A RESTAURANT ATMOSPHERE

Importance of a Good Atmosphere

DESIGNING A RESTAURANT ATMOSPHERE

Importance of a Good Atmosphere

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

DESIGNING A RESTAURANT ATMOSPHERE

Tables & Chairs

DESIGNING A RESTAURANT ATMOSPHERE

Tables & Chairs

DESIGNING A RESTAURANT ATMOSPHERE

Tables & Chairs

DESIGNING A RESTAURANT ATMOSPHERE

Size & Shape of Dining Rooms

DESIGNING A RESTAURANT ATMOSPHERE

Tables & Chairs