The demand of restaurant foods in South Africa is very high.The increased urbanisation and disposable incomes is leading to increased demand for restaurant foods.
Fast food restaurants normally specialise in certain foods opposed to selling everything that’s available on the fast food market.
The important thing is to provide a variety of products for customers to choose from, which are healthy, well prepared, delicious, affordable and attractive. It is of great importance to consider the profit margins of your products, as this is a business and it has to be profitable.
It’s common to see four or more fast-food restaurants operating close to each other or operating in the same shopping complex.
As long as you keep serving food that people want to eat and you have done your market research, being close to your competition shouldn’t be a problem.
Find out what works, what doesn’t, and get advice from those who are already in the restaurant industry. Be specific about the target market and niche you are going to provide your products to. What is the demand for your products in your proposed location?
You can never capture the whole market as people have different wants. How are you going to price your products and how sensitive is the demand to your prices?The more options available for the customers, the better.There isn’t really a standardised size for fast food restaurants, some restaurants still manage to operate smoothly in small spaces and small kitchens.It’s important that you locate your restaurant close to your target market.Consider the amount of road traffic, find an easy accessible location where people can stop and quickly get food.There are several possible locations, including shopping centres, malls and the CBD.In the fast food restaurant business you don’t have to overly concern yourself with trying to find a location that’s not too close to your competition.A take-away fast food restaurant will require less space than a sit-in restaurant.If you don’t have your own premises, you will have to rent.What is the specific segment of the restaurant industry which you are going into? A proper market research will increase the chances of your success in this business.This is an important decision to make before you start a restaurant business.