Why Does Existing Foot Traffic Play a Key Role In Your Success?
When looking to open a new business, measuring existing foot traffic in a specific location is a key component when putting a business plan together and planning financial projections.
It is crucial to understand the demographics of those in the neighborhood where you’re opening your business to ensure that the location makes sense in that area. Who will most likely frequent your business? Is your target demographic in that area? Will customers be able to find you, or will they easily bypass your location? These are important questions to ask yourself when choosing a spot for your business.
Why is Foot Traffic Important?
Foot traffic is an essential component for any business as it is oftentimes what keeps businesses alive. It also presents the easiest group to market. If the customers are already in the area, you just need to make sure you can now allure them in by using inexpensive marketing techniques such as proper signage, creating brand awareness on social media or attracting them in by hanging posters about your special offerings or events you organize.
One of the most important aspects of analyzing foot traffic is that it provides the business owner with insight into the customer’s behavior and current trends. It gives them the opportunity to understand their average customer in order to appropriately target the right people.
Marketing your business toward a group that identifies with your current customers is a helpful way to increase business and get people through your doors. Also, foot traffic is important to your business as it will help to balance your staffing needs. By knowing how much foot traffic there is in the area and how much you can expect to allure to your door, you can better calculate how much staff you will need and at what time they’ll work, therefore optimizing your staffing schedule.
You don’t want to over-staff an area with slow foot traffic at one particular time, or be under-staffed if you do not have enough employees to timely serve all the customers flowing in. Additionally, by analyzing foot traffic trends, you can better strategize your marketing efforts. When done right, tracking your visitors will lead to more streamlined operations, smarter business decisions, and better customer relationships. Now if your business has multiple locations, you can measure foot traffic to compare performance between venues. You can see why one location may be doing better than others and then apply whatever methods or strategies are working well to the other establishments to that specific location.
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When opening a new business, you should consider how certain external factors may affect foot traffic in your area. First and foremost, what are external factors? They include unavoidable circumstances such as weather, traffic, city/town events, holidays, government regulations, etc. You should be able to identify which external factors will increase or decrease foot traffic so you can plan accordingly. This means that you may have to adjust hours of operation, staffing schedules, food ordering, and such. Additionally, you should always be on top of external factors around you by following publications with local events, and often checking the weather forecast.
Why You Should Consider a Location With Existing Foot Traffic?
Now that you know why foot traffic is so important, we recommend you find a location that already has existing foot traffic when starting your self-pour business.
Foot traffic in the area you are considering can be monitored by observing other restaurants and shops in the area where you’re looking to open your business. Will your new business be easy to find? Are there other attractions in the area? What is the community demographic? These are all important factors to assess when finding a location. In your business ventures, we urge you to take into consideration the current trends in the area, and whether it will be worth it to open an establishment there. Existing foot traffic is one of the more reliable predictors for a successful business.
For more information regarding “Do’s” and “Dont’s” when opening up a self-pour taproom, download our guide below!