While big cities are often thought to be the best locations for new restaurants, budding restaurateurs would be well-served to focus elsewhere, namely, college towns and vacation spots, according to the 2009 Nielsen Claritas Restaurant Growth Index (RGI). The steady population of students, faculty and other employees, and the flow of visitors make these two types of towns optimal for new restaurants.
For the sixth year in a row, the top location is Myrtle Beach, South Carolina, despite its index ranking falling more than 100 points in the last year. Hot on its heels is Fort Walton beach, Florida, where restaurant spending has increased over the last 12 months. Rounding out the top five are Flagstaff, Arizona, Atlantic City, New Jersey and Ocean City New Jersey. Top movers – up and down – were Corpus Christi, Texas, which jumped up 25 points, and Napa, California, which dropped 14 spots.
“Obviously, one must consider a range of factors when determining where to locate a new restaurant. But the RGI can be a valuable tool that provides a data-based way to evaluate and compare different towns and cities. One must look at the ranking and the size of the market and then decide which metro area might be best suited for a particular concept,” said Terry Munoz, Vice President at Nielsen Claritas.
The RGI uses a formula to identify restaurant spending and gaps in spending per capita compared to a national average. The score is calculated on an area’s total restaurant sales and sales as a percent of income, at a per capita level, compared to the nation as a whole.
Top 25 Cities to Open New Restaurants
| Rank | City/Town | ||
|---|---|---|---|
| 1 | Myrtyle Beach, SC | ||
| 2 | Fort Walton Beach, FL | ||
| 3 | Flagstaff, AZ | ||
| 4 | Atlantic City, NJ | ||
| 5 | Ocean City, NJ | ||
| 6 | Las Vegas, NV | ||
| 7 | Honolulu, HI | ||
| 8 | Panama City, FL | ||
| 9 | Valdosta, GA | ||
| 10 | Lafayette, LA | ||
| 11 | Owensboro, KY | ||
| 12 | Orlando, FL | ||
| 13 | Springfield, IL | ||
| 14 | Hattiesburg, MS | ||
| 15 | Barnstable Town, MA | ||
| 16 | Brunswick, GA | ||
| 17 | Missoula, MT | ||
| 18 | Anchorage, AK | ||
| 19 | Santa Fe, NM | ||
| 20 | Casper, WY | ||
| 21 | Corpus Christi, TX | ||
| 22 | Charleston, SC | ||
| 23 | Great Falls, MT | ||
| T-24 | Burlington, NC | ||
| T-24 | Billings, MT | ||
| Source: Nielsen Claritas 2009 | |||
Ocean City, N.J. has always been a difficult location to open a restaurant because it is a dry town. Due to Ocean City’s religious-based anti-liquor laws, alcoholic beverages cannot be served and the “bring your own bottle” option is, likewise, illegal. Most vacationers drive over the causeway to Somers Point or to nearby Atlantic City in order to dine without such restrictions.
With the casino industry being hit hard by the recession and stiff competition from neighboring states (a report issued Thursday by the state Casino Control Commission says the gross operating profits at Atlantic City’s casinos were down 45.8 percent from the same period a year earlier), perhaps the timing for a new restaurant venture in Atlantic City isn’t right.
Since the score is calculated on the area’s total restaurant sales and sales as a percent of income, at a per capita level,it only means that we in Flagstaff are spending our restaurant budget on rent and house payments.
Ever checked out the housing prices compared to household income in Flagstaff,AZ? YIKES!
[...] You can read the full report on the Neilsen-Claritas Website Here. [...]
As a soon-to-be restaurant owner of Flagstaff’s newest/hottest restaurant, Tinderbox Kitchen, I am thrilled to see that all of our research and resulting decision to open a place in Flagstaff is warrented. We feel there is a pretty steady population of students, visitors and loyalty from locals to support another great place to socialize and eat. The concept for the restaurant (American comfort food – redefined)is an old-meets-new philosophy and ties in nicely with the location, which is one block south of the tracks on San Fransisco. Co-owned by cousins, Scott (from Cuvee 928) and Kevin Heinonen, Tinderbox will be opening in early May. We’re excited that Flagstaff will embrace this new, edgy, but playful upscale dining experience. Tinderbox is “taking it to the other side!”
[...] – 11th Best City to Open New Restaurant Location Matters: Top 25 Cities To Open New Restaurants April 2nd, 2009 Posted in Consumer, Nielsen [...]
This list is great, but wish there was an international version. Globalization has leaned fully in to the restaurant industry impacting everything from supply chain to growth strategies. Middle East restaurant market appears to be growing at a faster rate than China and India restaurant markets.
Aaron Allen
http://www.twitter.com/qmg
good to know about such things, but what about a global positioning ……….. i guess it will help many others like me & will be well appreciated.
Leave your response!
Recent Stories
Monthly Archive
Top Ads
Most Commented
Nielsen Company Blogs