5 Tips for Opening a Second Location

Angela Vendetti
Dec 1
2 min read

1. Replicate Systems, Not People

Your first location likely works because you (or a key leader) make it work. A second location breaks if operations rely on personalities instead of processes. You are not ready until your first location is running smoothly without you. To prepare, document your systems, including checklists, training documentation, and organizational structure.

2. Choose a Location Based on Proven Data, Not Vibes

Your first location gives you a ton of analytics—use them. This was the mistake I made opening my second location. We did not replicate the success of the first. Instead, I was lured by the ease of opening in a second generation space. It was inexpensive and we were open in just a few short months. HOWEVER, it was not the same market, day time population, competitive environment. I could go on. If you nailed it on the first try, replicate that the best you can. If the second location doesn't replicate the conditions that made the first successful, it’s a risk you may not want to take.

3. Build a Launch Team, Not a Replacement Team

Many operators mistakenly pull top performers from location #1, destabilizing it. Instead, build a hybrid launch team with 1–2 strong transfers plus new hires. Create succession plans before tapping anyone for store #2. The goal is two stable restaurants, not one strong and one struggling.

4. Protect Cash Flow Like a Hawk

Opening a second location is often when cash gets tight—even if sales look good. Take these precautions to protect your cash flow:

Over-budget the buildout by 20-30% for delays and surprises
Maintain 3–6 months of operating reserves for BOTH locations
Perform a cash flow analysis for the first year by month with conservative sales forecasts and labor budgets.

Remember, it is nearly impossible to borrow money once you've run out!