Letter From Square
Scaling your restaurant business can be a great opportunity for additional revenue. When you open up another location, you can reach new customers and take more orders, which can translate into higher sales — AKA money in your business's bank account. But there are even more reasons to expand.
It can help diversify your risk in the market while at the same time strengthen your brand's credibility. Scaling also allows you to test new concepts that can help set your business up for long-term success.
When you open another location, though, you join a crowded market. Nearly 53,800 new restaurants opened up in 2023 — up 10% from 2022, according to Yelp data. Making sure your investment pays off can be another hurdle. As much as scaling can be a great opportunity for your business, it can be a feat in today's landscape.
Square recently partnered with Industry Dive to survey 325 U.S. restaurant business leaders who opened another location in the last year. We found the majority of surveyed restaurant owners grappled with key parts of the process. Back office tasks, including managing staff's schedules (73%), scaling the business's toolset (72%), and navigating facility costs, were top challenges, as were significant decisions like choosing a neighborhood (73%).
It's time to dig into the details. In this playbook, you'll get a look at the benefits of scaling, how to avoid roadblocks in the process, and what other business leaders have learned from taking the plunge into opening a new location.
Note: This article is for educational purposes and does not constitute legal, financial or tax advice. For specific advice applicable to your business, please consult a professional.