Restaurant Density
Arestaurant’s location in its market and
its ability to differentiate itself from its
competition also help determine whether
it will survive.18 While a restaurant can
benefit from close proximity to competition
and restaurants are often located in
clusters to attract more traffic, as in a “restaurant
row,” an operation could find itself
in a cluster of restaurants within which it
cannot compete effectively. In that regard,
a restaurant’s inability to differentiate
itself from its competition can be fatal.
The restaurant’s reaction to competitive
pressures from excess density depends in
part on the nature of its ownership.