Identifying the most lucrative retail destinations for coffee shops and fast-food restaurants means calculating a host of variables.
Here, we will explain the basics of the retail destination concept, and tell you how to effectively find new retail destinations for coffee shops and fast-food restaurants.
Retail destinations as a concept
The concept of retail destinations has grown in response to the rise of digital commerce.
High-street companies can no longer compete on the basis of price and quality alone. Instead, business leaders have looked to enhance the experiential aspect by:
- Positioning themselves close to similar or complementary businesses
- Reviewing their products, services and brand aesthetic
- Looking for ways to make things more convenient for customers
The success of coffee shops and fast-food restaurants is tied to that of retail destinations, both in terms of their reliance on additional pull factors, and their ability to increase the overall appeal (and therefore profitability) of the destination itself.
Identifying retail destinations for coffee shops and fast-food restaurants
These are the key factors you should consider when searching for retail destinations for coffee shops and fast-food restaurants:
Who your target market is
Start by taking steps to improve your understanding of your target market.
Among the most important aspects to consider is whether your target market consists primarily of workers or local residents.
Workers are now the primary market for most coffee shops by some distance, while fast-food restaurants often blend the two groups.
The volume of these customer types within a defined area is only part of the equation, though. You also need to consider customer value.
Becoming part of a worker’s weekday schedule can be significantly more valuable than being part of a resident’s fortnightly shopping cycle.
You should, therefore, work out whether – for instance – a location with a catchment of 50,000 weekday workers is more valuable than a catchment of 100,000 local residents.
Where your target market is based
Once you know who your target market is, you can work out where they live, work, shop, travel and engage with your brand.
If targeting workers, search for locations within easy walking distance from areas with high levels of employment. Look for retail destinations close to major transport hubs/on high-volume commuter routes frequented by your target market.
If targeting residents, find out what other brands your target demographic engages with most, and search for highly visible prime locations nearby. This will increase the convenience aspect for customers and position you as part of a holistic, engaging retail experience.
Find retail destinations for coffee shops and fast-food restaurants with Periscope®
Periscope® is an intuitive location intelligence tool that will enhance your location planning processes by enabling you to quickly and accurately:
- Discover local demographics and their purchasing preferences
- Calculate estimated drive times, local footfall and transport links
- Gain insight into your customer types and complementary brands/amenities
- Optimise your products, services, opening times and aesthetics in each location
- Visualise all your findings on your own corporate, secure version of Google Maps
Optimise your fast-food restaurant or coffee shop brand presence by identifying ideal new locations. Request a 10-minute demo today.