En studie av områdesfaktorer för gynnsam restaurangetablering
A study of area characteristics for successful restaurant localization
Location choice can be considered a key competition element in multiple industries. In the restaurant business, location can be crucial for restaurants to stay competitive and viable over time. This study aims to investigate what kind of factors contribute to making an area more suitable for restaurant localization. Initially by looking at demographic composition in different areas in Sweden, investigating which areas restaurants tend to cluster to. Thereafter, the study investigates if this tendency to cluster to specific areas can provide an additional advantage for the individual restaurant through cumulative attraction. These two questions are analysed through regression analysis. The regressions use restaurant density, demographic statistics, and data on restaurant revenue to make estimations regarding what demographic and restaurant composition to look for in an area when opening restaurants or planning new neighbourhoods. The result of the study found significant positive correlation between restaurant density and variables such as median income and population density. Different household compositions where also found to be significantly correlated to restaurant density, although the direction of correlation varied with household size. A high restaurant density where later found to be positively correlated to restaurant revenue. This study therefore suggests that the area's demographic composition should be closely considered when examining the suitability of an area for restaurant localization. Although revenue might not provide the full picture of a restaurant’s success, clusters of restaurants should not be immediately dismissed in fear of competition when researching suitable location for similar businesses.