Best Cities For Your Restaurant Business in 2019
Nashville, Tennessee
With wages growing 36% between 2010 and 2015, Nashville’s residents are enjoying more disposable income to spend on the finer things in life. As such, this up-and-coming city could be the perfect place to open a new restaurant. Nashville’s culinary calling card has long been Nashville fried chicken — can you do one better? There may be an opportunity in the market for something entirely different; plant-based, fusion or European food, for instance. Or, you could take on the city’s favorite dish, and try to make it your own.Dayton, Ohio
Thanks to major renovation work, Dayton is undergoing a genuine metamorphosis. Investment in residences, office hubs, outdoor spaces and entertainment facilities — including festival and music venues — is drawing young professionals and travelling tourists alike to the city. By capitalizing early, you could secure a shop front and/or restaurant before the rental prices go sky high. Developers such as thewindsorcompanies.com have a whole host of opportunities for you to peruse. As a city on the rise, Dayton is certainly a location where you could make your mark.Dallas, Texas
When you think of Texan cities of culture, you’d be forgiven for assuming that Austin has more to give than its neighbor, Dallas. However, much like Nashville, a surge in employment opportunities in the city has given Dallas residents a new lease of life — launching a business there now could be an astute financial move. You’ve heard the saying, “Everything is bigger in Texas.” So, consider what unique selling point your restaurant business could bring to the local area; do you want to carve a space that’s authentically Texan, or do something truly disruptive to gain attention?Sacramento, California
Its proximity to other, more well-known and celebrated cities, San Francisco, Los Angeles, and San Diego, means that Sacramento is often overlooked as a culinary destination. Yet, located in the hub of America’s most abundant agricultural region, Sacramento has access to more ingredients than many other cities across The States. This makes it an ideal place to launch a restaurant business with a “farm to fork” approach. If your restaurant idea honors respectful relationships between suppliers and traders and wants to spotlight traditional ways of preparing and cooking food, then Sacramento may be the exact right place for you to launch and learn from.In conclusion…
All across The United States, there is no shortage of cities famed for their food and culture. For your restaurant business to be a success, look for a location where there’s space in the market and macro trends to suggest the city is on the up.2026 Update: What Has Changed For Restaurant Businesses Since We First Published This
I want to be straight with you before you read the rest of this post. The original piece below was written in 2019, and the restaurant landscape has shifted so dramatically since then that some of what I wrote feels like it belongs to a completely different world. We had a global pandemic in between, a cost-of-living crisis, and a wave of closures that reshaped which cities are genuinely worth betting your business on right now. So please do read the original for context, but treat this section as your 2026 briefing.
The biggest shift I keep seeing is that the cities which looked like obvious choices in 2019, your big, buzzy, high-footfall locations, are now the ones where operators are squeezed hardest. Commercial rents in prime city-centre spots in London, New York, and San Francisco have recovered sharply post-pandemic, and food costs are still elevated compared to where they were before inflation hit. Margins were already thin in this industry. Now they are brutal. Cities that were considered secondary or even overlooked back then are genuinely outperforming the so-called glamour locations.
What I would add to any city analysis in 2026 is a serious look at local government support for hospitality businesses. Some cities have introduced rate relief schemes, simplified licensing, or created food-quarter districts with shared infrastructure. That kind of structural support makes a real difference when you are trying to get through your first eighteen months. Do your research at council or municipal level before you commit to a location, not just at postcode level.
Technology has also changed the city equation. Ghost kitchens and delivery-first operations mean that a lower-profile city with cheaper square footage and a strong delivery-platform user base can outperform a prestigious address. Tools like restaurant management platforms and AI-driven demand forecasting are now accessible to small operators, which means a well-run spot in a mid-tier city can compete in ways it simply could not before. The playing field is not level, but it is leveller.
My honest take for 2026 is this: stop chasing the cities that look impressive on paper and start asking which cities give your specific concept the best shot at profitability within twelve months. The prestige of an address will not save a struggling P and L. Use the original post below as a starting framework, but come back to this updated thinking before you make any final decision.
The short version: The best cities for launching a restaurant in 2019 combine strong foot traffic, rising disposable income, and lower commercial rent compared to saturated markets like New York or San Francisco. Mid-sized cities with growing populations and business-friendly regulations tend to offer the best return on investment for new restaurant owners.
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Frequently asked questions
What makes a city good for opening a restaurant?
A strong local economy, steady population growth, affordable commercial rent, and a customer base with disposable income to spend on dining out. Cities with active tourism or a growing young professional population also tend to support new restaurant concepts well.
Are smaller cities better than major metros for new restaurants?
Often, yes. Smaller and mid-sized cities usually have lower rent and less competition, which gives new restaurant owners more room to build a customer base without the overhead costs found in cities like Los Angeles or Chicago.
How important is local competition when choosing a location?
Very important. A market with too many similar restaurants can make it hard to stand out, while a city with a gap in a particular cuisine or dining style gives a new business a clearer path to attracting loyal customers.
Should rising rent costs affect where I open my restaurant?
Yes. Rent is one of the biggest fixed costs for any restaurant, so choosing a city or neighborhood with reasonable commercial lease rates can make the difference between staying profitable and struggling in the first few years.
