Critical Check of Location Decisions in the Food Service Sector Sample Study
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1 Critical Check f Lcatin Decisins in the Fd Service Sectr Sample Study By: RegiPlan Cnsulting GmbH J u l y
2 Cpyright RegiPlan Cnsulting. Our general terms and cnditins frm 08/15 apply exclusively. The cnducted calculatins are based n infrmatin prvided by the client (dimensining, industry mix, tenant mix, etc.) as well as n infrmatin regarding the cmpetitive situatin, infrastructural prjects etc. that are knwn at the time f the analysis. The resulting frecasts are based n recgnized scientific methdlgies, and n data related t ppulatin and ecnmic develpment that was available at the time f the analysis. The actual develpments in the market can hwever differ, particularly due t unfreseeable events that impact the natinal ecnmic situatin. RegiPlan cannt be held respnsible fr such develpments. The stated turnver ptentials assume that the strategic plans are implemented ptimally and prfessinally, with the best pssible management, the required expertise t realize the planned prject as well as the prpsed recmmendatins. The prpsed turnver ptential is an indicatin f ptentially achievable turnver dimensins. RegiPlan cannt be held respnsible fr the turnver actually generated by the client. Ecnmic prfitability calculatins are, accrding t the agreement made in advance, nt a subject f the analysis. All presented market and turnver ptentials as well as turnver figures f existing market participants include value-added tax, unless indicated therwise. The analysis at hand is meant fr internal use by the client. Selling, reselling r disseminatin free f cst t nn-invlved third parties (in particular: media and internet) is expressly prhibited, insfar as n written permissin f RegiPlan is given. RegiPlan Cnsulting reserves the right t prcess general data.
3 A B O U T R E G I O P L A N RegiPlan Cnsulting 3 RegiPlan Cnsulting is a pan-eurpean business cnsultancy with fcus n retail related issues. We have ver 30 years f practical and scientific experience, due t dealing with pan-eurpean cnsumer behaviur, internatinal retailers and retail real estate n a daily basis. We understand cnsumers and retail. Fr yur strategies and statinary retail. We understand cnsumer behaviur as well as the internatinal market develpments and translate their implicatins int the statinary retail relating t the future. Our expertise as a retail cnsultancy is the develpment f retail cncepts as well as the psitining and the refurbishment f retail prperties. Statinary Retail Cnsumers Retail Megatrends
4 V a l i d a t i n f L c a t i n D e c i s i n s i n t h e F d S e r v i c e S e c t r S a m p l e S t u d y 4 Our Apprach t Cnsultancy fr Fd Service RegiPlan cnnects the knwledge, experience, and cnsulting apprach f the real estate industry with that f the fd service sectr RegiPlan understands the imprtance and the needs f fd service cmpanies in shpping streets, shpping centers, retail parks, and stand-alne utlets RegiPlan translates requirements and parameters int bjective and validated decisin supprt Site Suitability Analysis f Custmer Grups Cannibalisatin Effects Turnver Ptential Selected references:
5 V a l i d a t i n f L c a t i n D e c i s i n s i n t h e F d S e r v i c e S e c t r S a m p l e S t u d y 5 Our Services fr the Fd Service Sectr Using ur 30 years f knw-hw with site selectin in all f Eurpe, we prvide ur clients evaluatin methds fr determining site suitability and calculate perfrmance ptentials. Our fcus lies in the fllwing areas: Market entry strategy Market cverage: site search Critical check and validatin f expansin decisins Perfrmance f different guest grups Visitr flws Perfrmance analyses fr the evaluatin f existing lcatins In the fllwing yu will find a selectin f sample questins and methds.
6 V a l i d a t i n f L c a t i n D e c i s i n s i n t h e F d S e r v i c e S e c t r S a m p l e S t u d y 6 1 Critical Check f Lcatin Decisins White Spts Analysis Cmparisn f ptential lcatin znes
7 V a l i d a t i n f L c a t i n D e c i s i n s i n t h e F d S e r v i c e S e c t r S a m p l e S t u d y 7 Wels: Pririty Zne 1 Linz: Pririty Zne 2 Graphical depictin f a regin s expansin znes Steyr: Pririty Zne 1 Ranking f the znes accrding t cmpetitive situatin lcatin types target grup cmmunicatin
8 V a l i d a t i n f L c a t i n D e c i s i n s i n t h e F d S e r v i c e S e c t r S a m p l e S t u d y 8 Ranking the Lcatins Rank Lcatin Name 10-Minute Walking Distance Zne Ppulatin Purchasing Pwer Index / Resident Wrking Ppulatin Cmpetitin Overall Evaluatin 1 Freiburg / Kaiser-Jseph-Straße 234, , Krefeld / Hchstraße 225, , Oldenburg / Achternstraße 162, , Osnabrück / Grße Straße 165, , Neuss / Büchel 149, , Regensburg / Weiße Lilienstraße 135, , Inglstadt / Ludwigstraße 117, , Erlangen / Nürnberger Straße 105, , Jena / Löbder Straße 103, , Hildesheim / Almstraße 100, ,603 2 Surce: RegiData Research (a RegiPlan affiliated cmpany)
9 V a l i d a t i n f L c a t i n D e c i s i n s i n t h e F d S e r v i c e S e c t r S a m p l e S t u d y 9 2 Qualitative Evaluatin f Site Suitability Evaluatin Methd: Scring Mdel
10 V a l i d a t i n f L c a t i n D e c i s i n s i n t h e F d S e r v i c e S e c t r S a m p l e S t u d y 10 Site Evaluatin with Utility Analyses The utility analysis (scring mdel) is a systematic methd fr evaluating the suitability f lcatins evaluatin f mre than 20 qualitative criteria in 6 categries quantificatin f each criterin n a cardinal scale frm 0 (nt suitable) t 4 (very well suited) pints each criterin has a different relative imprtance, which is taken int cnsideratin by applying apprpriate weights cmparable results in abslute terms fr multiple lcatins a maximum f 100 pints fr perfect suitability ver 80 pints: very well-suited lcatin up t 80 pints: gd and lcatin with ptimizatin ptential belw 60 pints: nt a prmising evaluatin
11 V a l i d a t i n f L c a t i n D e c i s i n s i n t h e F d S e r v i c e S e c t r S a m p l e S t u d y 11 Scring Mdel Overview Overall Result: 77 pints Grundstück Premises und and Erreichbarkeit Accessibility Public Öff. Transprtatin Verkehrsanbindung Standrtumgebung Surrunding Area Bevölkerungsstruktur im Einzugsgebiet Ppulatin Structure in the Catchment Area Verkehrsfluss Traffic Flw Knkurrenzsituatin Lcal Cmpetitive Envirnment im Gastrnmie- in the Fd Bereich Service Sectr
12 V a l i d a t i n f L c a t i n D e c i s i n s i n t h e F d S e r v i c e S e c t r S a m p l e S t u d y 12 Scring Mdel Detailed Results evaluatin f each characteristic with a suitability in percent and as a traffic light clearly arranged, bjective summary f site suitability
13 V a l i d a t i n f L c a t i n D e c i s i n s i n t h e F d S e r v i c e S e c t r S a m p l e S t u d y 13 3 Catchment Areas and Benchmarking Catchment Area Methdlgy: Delimitatin, Intensity Znes, Benchmarking
14 V a l i d a t i n f L c a t i n D e c i s i n s i n t h e F d S e r v i c e S e c t r S a m p l e S t u d y 14 HUFF Mdel Catchment Areas The catchment area reflects cnsumer behavir, and is determined by the fllwing criteria: Cmpetitr functin and size f the retail zne (maximal travel time distance) relevant cmpetitrs by size and functin (limits due t intervening pprtunities ) distance t the site in questin (varius intensity znes f absrptin) maximal travel time distance intersectin f travel time distances primary catchment area secndary catcment area peripheral catchment area Evaluated Lcatin Cmpetitr Catchment Area The Huff mdel a classical graviatin-based mdel is a recgnized and prven basis fr every site analysis cnducted by RegiPlan.
15 V a l i d a t i n f L c a t i n D e c i s i n s i n t h e F d S e r v i c e S e c t r S a m p l e S t u d y 15 Benchmarking pssible methd fr an already existing utlet netwrk Cmparisn f a selected site with calculated benchmarks fr a mre accurate estimatin f realized ptential size f the catchment area (resident ppulatin) available ptential frm underutilized surces Residents in the CA Wrking Ppulatin within 10 min. Schl-Children and Students in 10 min. Traffic Frequency at the Lcatin Turists (Overnight Stays) in the CA Benchmark 50,000 8,000 1,000 30,000 35,000 Number 45,000 6, ,000 10,000 Degree f Perfrmnce 90% 81% 30% 150% 29% Evaluatin abve-average ptential amng schl-children traffic frequency slightly abve the benchmark hwever, the city s catchment area is relatively small Despite lw ppulatin figures, the selected site prvides a gd lcatin and sufficient surces f turnver ptential.
16 V a l i d a t i n f L c a t i n D e c i s i n s i n t h e F d S e r v i c e S e c t r S a m p l e S t u d y 16 4 Turnver Ptentials & Custmer Grups Calculatin Methd Analysis f Custmer Grups Cannibalisatin Effects Alternative Lcatins
17 V a l i d a t i n f L c a t i n D e c i s i n s i n t h e F d S e r v i c e S e c t r S a m p l e S t u d y 17 Turnver Ptential and Custmer Grups - Intrductin The fd service turnver ptential calculated by RegiPlan is divided accrding t varius custmer grups and reprted individually fr each ne. Annual cnsumer expenditure fr gastrnmy is the basis fr these calculatins this expenditure represents the average mney (in ) spent n eating ut. Fr each custmer grup, these gastrnmy expenditures are sub-divided int the fllwing categries: leisure wrk schl turism In this way, the calculatin f ptential can take int accunt nt nly the resident ppulatin as a whle, but als individual custmer grups like emplyees, students, r turists.
18 Turnver Ptential in Mln V a l i d a t i n f L c a t i n D e c i s i n s i n t h e F d S e r v i c e S e c t r S a m p l e S t u d y 18 Scenari: Calculatin fr Alternative Lcatins 3,0 2,5 0,8 Einwhner Residents im in Einzugsgebiet the CA Evaluatin f the Alternative Lcatin: better visibility increased turnver frm custmer grup highway frequency (+ 0.2 mln) 2,0 1,5 1,0 0,5 0,0 0,8 0,3 0,4 0,2 0,3 0,4 0,7 0,2 0,7 0,2 0,3 Standrt Lcatin A Ttal Turnver: 2.2 mln Alternativstandrt Alternative B Lcatin B Ttal Turnver: 3.1 mln Beschäftigte Emplyees in Standrtumgebung the CA Frequenz Freeway Autbahn Frequency Frequenz Federal Bundesstraße Rad Frequency Kunden Retail Zne Handelszne Custmers Streuumsätze Miscellaneus Turnver Imprved accessibility increased absrptin f retail zne custmers (+ 0.4 mln) Better cmmunicatin t custmer grup emplyees (+ 0.1 mln) SUMMARY: Alternative Lcatin B ffers a ptential turnver f 3.1 mln.
19 V a l i d a t i n f L c a t i n D e c i s i n s i n t h e F d S e r v i c e S e c t r S a m p l e S t u d y 19 Cannibalisatin Effects RegiPlan als calculates the pssible effects f cannibalisatin amng already existing restaurants in the direct reach f the analysed lcatin The result prvides the turnver ptential fr the existing utlet befre and after the pening at the new lcatin the turnver ptential f the new lcatin is calculated as well the pssible cannibalisatin effects between the tw lcatins are visible in the calculatin Likewise, the analysis reveals changes in the purchasing behavir between the existing and new lcatin, with regard t a pssible verlap f their catchment areas the cannibalisatin effects differentiated accrding t custmer grup
20 V a l i d a t i n f L c a t i n D e c i s i n s i n t h e F d S e r v i c e S e c t r S a m p l e S t u d y 20 Cannibalisatin Effects Overlap Cannibalisatin Effect: 0.5 mln Analyzed lcatin: ptential turnver 2 mln. Due t the new lcatin s better accessibility frm the areas nrth f Bratislava, the existing utlet will lse apprx. 0.5 mln f its current turnver ptential Catchment Area NEW Turnver Ptential: 2 mln Catchment Area OLD Turnver Ptential (befre): 3.5 mln Turnver Ptential (after): 3 mln SUMMARY : Cannibalisatin with the existing lcatin: 0.5 mln Resulting net new turnver fr the cmpany*: 1.5 mln * by pening f a new utlet at the analyzed site
21 Yur Cntacts ANTHONY CROW ACCOUNT MANAGER T: E: a.crw@regiplan.eu HANIA BOMBA CEO T: E: h.bmba@regiplan.eu
22 We d lve t hear frm yu! AUSTRIA: Thebaldgasse Vienna ffice@regiplan.eu GERMANY: Picassplatz Münster n.eibl@regiplan.eu We understand cnsumers and retail. Fr yur strategies and statinary retail.
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