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Restaurant Expansion: When’s the Right Time?

December 10, 2020

Head of Hospitality

Head of Hospitality

Article Overview

10min read

Expansion is the most recommended method for growing a restaurant business. Restaurant owners can achieve this in two ways; by either spreading out their business to other geographical locations or by expanding the existing menu to offer new items.

But, how do you know when it’s the right time to consider expanding? Here’s everything you need to know.

Are You Making A Profit?

Branching out is not a good idea if you are still struggling to pay wages and settle your bills every month. Expanding while your financial situation is uncertain is always risky and can have certain repercussions – growing your restaurant is best when you are financially stable.

In addition, owners must consider the fact that when they are running a profitable business, they will have more cash to let out. Loans are always a viable option but getting into debt early into your expansion can leave you stuck in the event of any unexpected expenditure. Seek the help of a consultant to guide you in making a sound decision.

Do You Have A Reliable Team?

Having an experienced and reliable team is easily one of the largest challenges in the hospitality industry. It is no secret that staff turnover in restaurants incredibly high and shortages of good employees are all too prevalent. 


Knowing that you have a reliable team at the helm of your original restaurant can give you the peace of mind to focus on your new establishment such as creating the menu design and consulting with your restaurant advisors for the interior decor. And when your new business is finally open, you can rely on your team to train the new employees. 

Are You Bored?

Boredom is an alarming reality for entrepreneurs today. For most, there is a constant need to reinvent and innovate which helps them stay focused on their business and discover ways to stay ahead of the competition. If you no longer feel challenged and the process of running your business has turned into a monotonous process, you will be able to reenergize yourself with an expansion.

What Do You Need?

If you are convinced that you are ready to expand, here is everything you need to know to set yourself up for success. Will you be starting over with a brand new concept or will you bring your existing concept? Will you be opening your restaurant in the same city, a new province, or a completely different country? You have to answer these questions for you to have a clear idea of what will be ahead of you. Research and conduct a thorough feasibility study. All your answers will influence your decisions in branching out. 

Having The Right Equipment and Experienced Partner

As you grow your business, there is a good chance that you will also need more comprehensive software and multi-unit POS systems that can compile information from multiple locations into a single location, thus allowing for better analysis.

When looking for investors, do look for someone who has experience handling multiple locations and varying concepts. In simple terms, you should look for more than money. A strategic partner should be able to provide the necessary expertise and help with introductions to the right circles.


Growing your business is an exciting venture that can reap endless rewards. However, it is important to strategically plan the process and expand at the right moment if you are to set yourself up for success.


Head of Hospitality

Angela Soudi is a visionary writer with 20+ years of experience in Sales and Marketing across Europe, Canada, and the Middle East. She is highly invested in actively contributing articles to pioneering hospitality platforms and websites.

Head of Hospitality
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