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Choosing the Perfect Location for Your Burger Franchise

February 12, 2020

Foreword : Best Burgers in Kuta and Seminyak, Bali

Just a quick foreword. Everybody is talking about Dod’s Burger – well known for the freshest burgers in Bali ! If you happen to visit the beautiful island or if you are already here, please do pop down to one of our outlets and try our famous gourmet burgers. We are located in Seminyak and Kuta Square. Go to the location link on this website. Thank you !

Location, Location, Location

You’ve heard it before: three of the key requirements for any successful restaurant or retail business are location, location, and . . . location. But what makes a good location? Remember: a location is perfect only if you have a concept that will fit your site.

How many times have you seen one restaurant concept come along and succeed at the same location where another endeavor had failed? Concept and location are like the chicken and the egg. One or the other has to come first.

Market and demographic research will help you to identify the right concept or location, and then the other can follow. That said, there are some rough guidelines that you can follow in picking your ideal location. Ideally, the best location for a restaurant is one that has a high concentration of potential customers, day and night. This might be a central business district near a residential area, or an area with many tourists.

Many restaurants, of course, are successful serving just one or two meal periods; you don’t have to plan on being open from breakfast through supper time. But wouldn’t it be nice to know that you could, if you wanted to? In reality, to get such a place, you probably would have to stay open 24/7 to afford the rent! These prime locations attract lots of competitors and tend to be very expensive, that is, if they are available. But with the right concept for the neighborhood, that high rent pays off.

Access to Utilities

Access to utilities is critical for any restaurant. Large urban areas usually have an abundance of electric power and natural gas lines. In rural districts, however, only bottled gas, which puts out 25 percent less heat than natural gas, may be available.

In Bali, electrical equipment runs 220-volt single phase, which is not a problem in most locations. However, should you need three-phase 220-volt power lines, you may run into trouble; these are not always readily available, and upgrading your electric service with the PLN (National Electric Company) can be very costly.

Also be aware that older buildings may need extra lines installed to accommodate your needs. If you need to make upgrades, factor this into your budget. You may also be able to negotiate a lower rent or get the owner of the “ruko” to cover some or all the upgrade costs.

Zoning and Regulations

Indonesia has a decentralized system of government meaning that local, provincial and city governments are mostly free to make their own laws in their own jurisdiction. As such, zoning laws vary from city to city and province to province. These can affect the cost and availability of a space dramatically. Before you commit to a space, verify that it is zoned for your specific type of concept and your desired occupancy levels.

Complying with zoning laws can be very costly and time consuming, particularly if you need to get a variance (that is, approval of uses other than those specified by the zoning laws). If you must apply for a variance in order to use a site, you should seriously consider finding another place. Stay away from locations with restrictions on the sale of alcohol unless you do not plan to sell alcoholic beverages and can still make a profit without the contribution of these high-margin menu items.

One of the biggest advantages of buying an existing restaurant, where a license is already obtained, is that you won’t have to go through most of the local zoning and community approval investigations.

Accessibility and Visibility of your Outlet Location

Visibility to pedestrians and motorists is a free source of advertising. If your burger restaurant is not in a location where it can be seen easily, you may have to spend more in advertising to attract customers. Ideally, your restaurant should be visible from both sides of the street. Is it on a corner or in the middle of the block?

Corner locations are more visible, typically require less signage than those in the middle of a block, and are easier to give directions to. Corner locations have another benefit in that cars almost always have to stop or slow down at intersections and so are more likely to see your restaurant. The faster the traffic on your street, the more difficult it will be for passing motorists to notice your restaurant. Check to see how visible your location site will be when driving by slowly. While you don’t want nearby traffic to be too fast, it shouldn’t be too slow, either.

Customers need to be able to enter and exit your restaurant easily. Because any interruption in the flow of traffic in front of your business can be disastrous, it is essential to find out whether any major public works projects are pending—say, new highways or road repaving—that may direct traffic away from where you want it to go: straight to your front door!

Parking Availibility

In Bali and Indonesia in general, having a customer parking space for your business is an absolute necessity. This is because of the lack of public transport in Bali, and most people here either use motorbikes or cars to get around town.

Before you open your burger outlet, you should determine whether parking will be adequate, particularly during your anticipated peak hours. The availability of convenient parking can add significantly to the success of your business in Bali.

The parking lot doesn’t have to be owned by you. It can just be street parking, as long as customers can park their vehicles while patronizing your burger outlet. For example, in our burger outlets in Kuta and Seminyak, both locations have ample street parking for motorbikes and this allows patrons to visit both our restaurants easily.

Author’s note :

Hello I am Eddy and co-owner of Dod’s Burger outlets in Kuta and Seminyak, Bali. I have been in the burger business for almost three years and I teach people who wish to start a burger business from all over the world. I also give advice to those who want to start a business in Bali. Please reach out if you would like me to help you at hello@dodsburger.com. 

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