A decision-making framework for small restaurant location selection using the Analytic Hierarchy Process

Small restaurant businesses often encounter challenges in achieving sustainability and success. Among these, poor location selection ranks as the leading cause of failure, given that location is a strategic decision that anchors the business. The objectives of the study are to identify the most influential factor for location selection, and to determine the most suitable location type for small restaurants. Surveys were conducted with small restaurant owners from three distinct location types such as industrial, residential, and commercial. The analysis revealed that location characteristics were the most important factor in industrial areas, cost was most significant in residential areas, and demographic attributes were most critical in commercial zones. Furthermore, Decision Maker 1 and Decision Maker 3 ranked commercial zones as the most favorable for opening a small restaurant, whereas Decision Maker 2 favored residential zones. These insights provide valuable implications for entrepreneurs and urban planners involved in small restaurant development.