“Location, Location, Location.” I can’t count how many times I have heard this phrase quoted, especially in reference to real estate or home buying. Before our class on Thursday, April 12, I had never really considered the importance of location beyond the homeowner world. Now and even back in 1952, the location of the home is one of the biggest drivers of price and desirability. The people want to be near the shops, but I never realized the shops want to be near the people.
This is Black Rock Bar and Grill’s current mindset as they look to expand their restaurant across state lines into Ohio. My first and only experience with the restaurant occurred while vacationing with my family in Tampa, Florida, a few years back. It really was one of the most unique dining experiences I have ever had, as customers cook their own meat on slab of volcanic rock reaching temperatures of up to 755 degrees Fahrenheit. After pairing this fascinating concept with delicious food, it is obvious why the restaurant looks to open their doors to a new target market. Read the story in the link below.
When I read that Black Rock was looking to open a new restaurant, the first thing that crossed my mind was location. Why are they opening up their restaurant in a shopping center outside of Dayton, Ohio? Shouldn’t they be expanding their popular restaurant idea to somewhere flashy like Miami Beach? I’m sure management had other location opportunities to consider, but they settled on suburbia outside Dayton. They must have had a good reason to do so. Let’s figure out why.
As the article mentions above, the new restaurant will bring along work for new restaurant staff as well as external contractors and suppliers to the area. Compared to Miami Beach, an area saturated with restaurants, waiters, food suppliers, and more, the opening of Black Rock in Dayton would do a lot more good for people looking for work. In terms of cost, it is much less expensive to buy and maintain property in Beavercreek, Ohio, than it is in a place like Miami Beach. It’s not just the property that’s cheaper, it’s almost everything. One pound of chicken breasts in Dayton costs around $2.00. In Miami? That same item costs around $3.70. Property and inventory costs can add up quick for restaurants, and by choosing the Dayton suburb over the hypothetical Miami Beach, Black Rock will save a good amount of money.
But what about the people? Will there be enough foot traffic in Dayton compared the ever-busy nightlife of Miami? A restaurant like this would surely be popular in a busy location like Miami, but I think its distinct features will bring in a steady flow of customers to the Dayton location on a nightly basis. According to FitSmallBusiness (https://fitsmallbusiness.com/choose-a-restaurant-location/), there are four main restaurant types. Black Rock would fit as a Bar & Bistro/Fine Dining hybrid, which means customers will be willing to drive a far distance to dine there. Because new jobs and business will be created, costs will be kept relatively low, and customers should be consistent, Black Rock’s opening in Beavercreek, Ohio, checks out as a smart spot for planning a supply chain.
What do you all think? Should Black Rock consider Miami or other high-profile locations in the future? Did they make the wrong choice choosing Ohio? Are there any other similar stories you can think of?
Additional links: http://www.blackrockrestaurants.com/