GIS FOR RESTAURANTS – GIS for Business and Service Planning

Among fast-food chain restaurants such as McDonald’s and Burger King, the most visible and vocal users of GIS are at Arby’s. Among a variety of applications used at Arby’s is one that uses drive time to establish the likely trade area for an existing or potential store (Freeling 1993). In the fast-food business, customers are likely to be attracted more to the convenience of the product than to its gourmet appeal. It is, therefore, important to look at a trade area from the perspective of drive-time accessibility. Like many retailers, Arby’s personnel know how long someone will drive to access their product. In addition, they are familiar with the demographic characteristics of their typical customers. By analysing the demographics of a trade area established by using drive times, the likely sales performance for a store can be modelled. Arby’s is careful not to β€œcannibalize” an existing store when developing a new store. Cannibalizing means taking customers from one of their existing stores. Cannibalization should be avoided since a new store should increase overall business, not spread it around. By the same token, they are very eager to take away their competitors’ customers, and so they carefully analyse their competitors’ existing locations in comparison with their own.

Published by

bisgis

GIS FOR BUSINESS

Comment...

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s