Growing Local Chain Restaurant seeks customer insight and site selection leads
A small Nashville-based restaurant chain with five locations was ready to expand and wanted to better understand the factors in their existing successful locations to aid in their site-selection process. They approached New Perspective for help with this task.
The chain had limited customer data that had been collected from a handful of sources. This information was adequate for profiling, but not comprehensive enough to be the exclusive data source for the analysis. Working with the owners and managers, trade areas around each location were defined based on their knowledge of the customer base. The trade areas were then analyzed across over 100 demographic and lifestyle categories and indexed against the greater market to identify unique characteristics of the households within each trade area.
The analysis revealed some interesting insights. Looking at the trade areas collectively, it was clear that they stood apart from the overall market in a number of significant ways:
- Better educated
- Higher home values & newer homes
- Significantly higher incomes
Digging deeper, New Perspective found that four of the five locations were fairly similar demographically while the fifth location stood apart from the others with a unique household base. All five locations had a significant number of workers located within 1 mile of the restaurant.
The customer records provided by the client reinforced the findings of the trade area analysis. They indicated well-educated customers with above average incomes, typically living in newer homes they owned with their families and children. A significant base of Asian customers was also identified through these records.
Of course, customer and trade area profiling are useful, but translating these findings into actionable results is the goal of every New Perspective analysis. To that end, we surveyed every significant intersection within the client’s target markets and built a model to calculate a score based on the projected success factors around each intersection. These success factors included population and household density, worker counts, key demographics and the competitive landscape.
Armed with this information, the client was eager to begin the site selection process and expressed confidence in the utility of these market insights.