Your profits are climbing, you have a staff you can rely on and an enviable customer circle.
No wonder you want to expand your business.
But before you dive in, have you thought about the challenges that come with growing your restaurant?
Things like ensuring your brand stays consistent, choosing the perfect location, or hiring an entirely new team to bring your vision to life.
These are things to be aware of during expansion.
We don’t say this to discourage you, but to help you prepare.
By understanding the challenges ahead, you’ll be in a much better position to overcome or prevent them, so your restaurant expansion is nothing less than a success.
The wrong spot can derail even the best restaurant concept.
Imagine putting all your effort into a fantastic menu, great service, and branding—only to find out that no one knows you’re there because you picked a location with little to no foot traffic.
This is exactly what happened to a restaurant owner who shared his story on Reddit:
Illustration: Tablein / Quote: Reddit
We understand why they chose that location—it was cheaper, and the busier area didn’t have any vacancies at the time.
But in hindsight, could they have waited a little longer or looked elsewhere?
Probably.
Now, they’re spending extra money and time on advertising just to let people know they exist, which cuts into profits.
The same happened to this restaurant owner:
“My first spot was nestled inside a building, on the 2nd floor, facing a parking lot. You wouldn’t know we were there unless you were seriously looking for us. I walked down the block and got a storefront the next year which was about the same as the rent I was paying + thousands in advertising that I was putting out to get people to find me. I’ve since cut the advertising and people are finding me organically just walking down the street.”
Both stories show how important the right location is.
Even if you’re tempted to save on rent or grab the first available space, it’s worth taking a step back and doing your homework.
Take your time and do thorough market research.
Look into the area’s foot traffic, competition, and demographics before committing to any location.
If you’re wondering where to start, there’s a great video by Wilson Lee, the CEO and founder of the Profitable Restaurant Owner Academy.
He breaks down exactly what to focus on when choosing a new location for your restaurant.
It’s worth checking out:
Source: Wilson K Lee on YouTube
The bottom line?
Expansion is exciting, but don’t rush into it.
A little patience and planning can save you from costly mistakes down the line.
And sometimes, waiting for the right location to become available is better than settling for a less-than-ideal spot.
Another big challenge you’ll face when expanding is maintaining consistency across locations.
And this one’s tricky.
How do you ensure that every single dish tastes the same, every customer receives the same level of service, and the overall experience matches the brand you’ve worked so hard to build?
It’s difficult, but it’s also essential because inconsistent quality or service can harm your reputation and you can lose loyal customers.
Let us give you a well-known example: Chipotle.
For years now, they’ve struggled with consistency across locations.
First, it was food quality and safety.
Between 2015 and 2018, Chipotle faced food safety issues that caused illnesses across the U.S., costing them a $25 million fine.
The U.S. Attorney Nick Hanna said at the time:
Illustration: Tablein / Quote: Eat This, Not That
Fast forward to today, they’ve largely resolved the safety issues, but a new inconsistency remains—portion sizes.
Customers have noticed that portions vary not just between locations but even within the same location.
One customer, Benjamin Shifrin, got so frustrated that he created an entire website, StopTheSkimp.com, where people rate Chipotle locations and other fast-casual restaurants based on how much they “skimp” on portions.
Source: StopTheSkimp!
He explains why he did it:
Illustration: Tablein / Quote: Eat This, Not That
That site now gets 30,000 monthly visitors!
Chipotle could have avoided this headache if they ensured consistency across the board.
And if consistency is hard to obtain for a big chain like Chipotle, it’s going to be even harder for smaller restaurants expanding into new locations.
So, how do you make sure this doesn’t happen to you?
The key is to put detailed standard operating procedures (SOPs) in place, and invest in proper staff training.
Take McDonald’s, for example.
No matter where you go—London, New York, or Tokyo—a Big Mac tastes the same.
Why?
Because McDonald’s has perfected the art of consistency. They have strict SOPs covering everything from how to prepare food and ensure safety to how to interact with customers.
We spoke to a McDonald’s crew trainer-turned-floor manager who worked across several locations in Slovenia.
He shared a few specific SOPs they use:
Source: Tablein
He also told us that no matter which McDonald’s location he worked in, the procedures were the same.
That’s how they keep their brand consistent globally.
And they train their employees relentlessly to follow these procedures.
McDonald’s even has its own Hamburger University, a globally recognized training program for employees and managers.
Source: McDonald’s
For your restaurant, you might not need a “university,” but you should implement similar practices.
Document every process—how you prep ingredients, cook your dishes, interact with guests—into a detailed restaurant operations manual, and make sure new locations follow it to the letter.
Then train your staff thoroughly.
One last thing: consistency isn’t just about food and service. It extends to your restaurant’s design and ambiance, too.
A consistent look and feel across all your locations helps reinforce your brand because it makes customers feel at home, whether they’re at your original spot or a new one.
So, make sure to focus on this, too, to ensure consistency.
When you’re expanding your restaurant to new locations, one of the challenges you’ll likely face is ensuring that all your locations adopt the same technologies.
This might seem like a small detail, but it’s actually incredibly important for running a restaurant and giving your customers a consistent experience.
For example, let’s say you have a restaurant reservation system in your original restaurant.
If this location uses it and the new one doesn’t, customers might have a completely different experience depending on where they go, and that inconsistency can hurt your brand.
A good example here is Casa Bunicii, a Romanian restaurant with two locations.
Both locations use our restaurant reservation system Tablein, for table bookings.
Source: Tablein
This means that no matter which location the customer chooses, the booking process is the same.
Not only is it easy and familiar for the customer, but the restaurant staff across both locations can access the same customer data.
For example:
That kind of data is a goldmine for providing better service and keeping customers coming back.
But technology integration isn’t just focused on reservation systems.
There are more restaurant technologies, like POS systems, kitchen displays, tools for centralized reporting, and various new tools appearing in the market at the moment.
Chipotle, for example, is experimenting with tech like their Autocado and the Augmented Makeline, which help prepare avocados faster with less manual labor.
Source: Good Day Sacramento on YouTube
These technologies are here to make restaurant operations more efficient but also to improve accuracy and consistency across all restaurant locations.
The problem is integrating these technologies across locations.
New locations might not have the infrastructure for the tech, like fast internet or compatible hardware.
Then there’s the human side—staff might be hesitant to learn how to use a new system, or they might not use it correctly without proper training.
There’s also the cost of rolling out these platforms everywhere, which can be significant when you’re expanding.
Source: Tablein
That’s a lot of challenges, but the effort is absolutely worth it.
Integrating technology will help you improve your processes, data tracking, and, ultimately, customer experience.
To make it work, you’ll need to invest time in training your team to use the systems properly and keep them updated as your tech evolves.
And don’t forget to partner with technology vendors who can grow with you and provide strong support.
Managing inventory, vendors, and deliveries is already challenging for one restaurant.
Now multiply that by two, three, or more locations and you get a whole new level of complexity.
And with more restaurants to handle, there’s more chance of supply chain disruptions, which can lead to some very real consequences.
You could face inconsistent product availability and not be able to serve your signature dish because the key ingredient didn’t arrive on time, or deal with increased costs if you’re forced to source emergency replacements at the last minute.
Or you would have to shut down the restaurant(s) completely.
That’s what happened in KFC’s infamous supply chain crisis in the UK in 2018.
Source: BBC
Just before that, KFC had decided to switch logistics providers, giving DHL the contract to manage supply and distribution for over 850 outlets.
But on DHL’s very first day, everything went wrong.
The company relied on a single depot for distribution, and a series of road accidents near that depot caused massive delays.
Within days, hundreds of KFC locations ran out of chicken and had to shut down.
Illustration: Tablein / Data: Wired
To make matters worse, poor handling led to spoiled chicken and wasted inventory.
The situation hurt KFC’s reputation and highlighted just how fragile supply chains can be.
Now, if you’re expanding your restaurant into a new region, the complexity only increases.
For example, if your new location is in another state or country, sourcing the same ingredients might be harder or more expensive due to transportation costs or availability.
Or, you might have to deal with unfamiliar vendors, different local regulations, or even varying ingredient quality.
So, how do you overcome these challenges?
For starters, choose your logistics partners and suppliers wisely, and try to establish strong relationships with them.
Then, even if something goes wrong, a good vendor will work with you to find solutions quickly.
Additionally, use technology to your advantage.
Centralized inventory management systems, like the one in the image below, can help you track stock levels across multiple locations in real time, so you’ll know immediately if there’s a shortage or delay.
Source: Restora POS
This kind of system can also help you plan better by analyzing patterns—like which items sell more in certain regions—so you can anticipate needs.
Expanding your restaurant means stepping into a more complex role—almost like becoming your own procurement manager.
But with the right technology, relationships, and mindset, you can overcome these challenges, too.
Do you remember how long it took you to build the highly skilled team you currently rely on?
Now, you’ll need to do it all over again for your new location(s).
This is pretty challenging in itself, from interviewing potential hires and finding the best fit to spending time and resources training them.
And when you invest all this time, it still doesn't mean that they will stay.
After all, the restaurant industry has one of the highest employee turnover rates compared to other industries.
Why is that?
Garry Wall, a former chef and culinary instructor, shared his thoughts based on years of experience in the industry:
Illustration: Tablein / Quote: Quora
It’s true.
Poor hiring practices and a lack of proper training are widespread issues across industries.
According to a CareerBuilder survey, 36% of employers don’t have a structured onboarding process at all, and for the restaurant industry, this percentage is likely even higher.
Illustration: Tablein / Data: CareerBuilder
This is really a missed opportunity because onboarding actually brings so many benefits, and among others, it lowers employee turnover:
Illustration: Tablein / Data: CareerBuilder
On top of this, hiring skilled staff has become even more competitive.
As of November 2023, 88% of restaurant operators stated they are likely to hire additional employees in the next 6-12 months if qualified applicants are available.
That level of competition means you’re not just hiring but competing for the best people.
So, how do you overcome this challenge?
It boils down to a few key strategies:
And, most importantly, respect your staff as people, not just light bulbs you can replace as Mr. Wall said.
Offer fair wages, flexible schedules, and opportunities for career growth to show your team you value them.
When you take the time to do these things, you won’t just hire employees but build a team.
And when your new team is skilled, motivated, and engaged, your new location has a much better chance of thriving.
When expanding your restaurant, it's easy to get caught up in managing operations, controlling costs, and scaling processes.
But in doing so, there’s a real risk of losing focus on what made your restaurant successful in the first place—your guest experience.
When restaurants expand:
Loyal patrons notice these changes, and their disappointment can spread through word of mouth or reviews, which can damage your brand more than any operational setback.
Take Sweetgreen, an American fast casual restaurant chain that serves salads, for example.
From a 500-square-foot-old burger shack right off campus at Georgetown University, Sweetgreen scaled rapidly to more than 140 locations across 13 states.
But lately, customers have begun complaining about inconsistent portions, rushed service, high prices, and a lack of usual ingredients.
As one customer wrote on Reddit:
“I feel like each time I consider getting a salad from Sweetgreen they’ve removed my favorite items, prices have increased and, overall, the salads are just not as good lately. I feel like they’ve gotten too big to function like they previously did and it’s quantity over quality now. Sad too because I used to order Sweetgreen 3x a week and now it just doesn’t feel worth it to me anymore.”
And the other noted:
“Sweetgreen tanked. I’ve been a loyal customer for many years and have eaten there multiple times a week. I can’t keep going anymore, it’s just making me depressed how bad the quality has gotten.”
And if you take a look at Sweetgreen’s reviews on TripAdvisor or Yelp, or even at discussions in Threads, you can quickly notice that for many restaurant locations, there are negative reviews about poor customer service, rude employees, and overall bad guest experience.
Source: Threads
While it’s a fast-casual chain, the lesson applies universally: growth that undermines the guest experience risks alienating the very customers who helped build your reputation.
To overcome this, or even better, prevent it from happening to you, make guest satisfaction your priority.
Besides food quality, which goes without saying.
Invest in regular staff training so that your team consistently delivers excellent service.
Implement systems for collecting and acting on customer feedback.
And even as you grow, find ways to maintain a personal touch—whether it’s remembering regulars’ names, ensuring your signature dishes always meet high standards or replicating the ambiance your diners love.
Growth is exciting, but only if it enhances your restaurant’s identity, not dilutes it.
Your guests should feel the same warmth and care at every new location.
So, keep them at the heart of your expansion strategy, and success will follow.
Expanding your restaurant is an exciting milestone, where success depends on careful planning and finding ways to overcome these challenges.
One way to do that is by investing in your team, processes, and technology.
Be patient and deliberate in your decisions, and always keep your customers at the center of your strategy.
And remember: growth works best when it complements what already makes your brand special—great food, service, and ambiance.
So, make sure to wave them into every decision, every new location, and every guest experience.
Good luck on your restaurant expansion journey!