Pitney Bowes Bus. Insight Predicts Quick-Service & Fast-Casual Restaurants Will Thrive in 2011 in Buffalo, Seattle & Rochester
January 13 2011 - 9:21AM
Business Wire
Pitney Bowes Business Insight, a global leader in customer data,
analytics and communication software and services, has analyzed
public and proprietary data to predict the top growth locations in
2011 for quick service restaurants (QSRs) in large, medium and
small markets. Topping the list of the best locations in the large
markets (population greater than one million) is Buffalo, New York.
Second and third place for QSRs in this segment are
Seattle-Tacoma-Bellevue, Washington and Rochester, New York.
The three best locations for QSR growth for medium-size markets
(population between 250,000 and one million) are all in Texas.
First place is McAllen-Edinburg-Mission, followed by
Brownsville-Harlingen and El Paso.
In the small-market segment (population less than 250,000),
Yakima, Washington is the most promising location for a new
restaurant. Hilo, Hawaii and Ithaca, New York followed in second
and third place.
According to Forrester Research, U.S. consumers spend $320
billion annually on food away from home. As consumers continue to
look for fast and economical food choices, companies are expanding
QSR locations across the U.S. to serve breakfast, lunch and dinner.
Pitney Bowes Business Insight experts reviewed changes in
unemployment rates, retail sales, disposable income, and home
prices, as well as competitive intensity of QSR chains with 25 or
more outlets. The best markets for development were locations that
showed improvement in employment growth, had strong retail and home
sales, and exhibited a low presence of competitors.
“In today’s competitive restaurant market, intelligent site
selection plays a critical role in the success and long-term growth
of any QSR. The most effective businesses use objective analytical
methods to zero in on the most profitable locations and form
long-lasting relationships with customers,” said Al Beery, director
of client services at Pitney Bowes Business Insight. “The best
markets for QSR growth in 2011 is just an example of the research
and predictive analytics models that we’ve been providing to
restaurants and operators.”
As QSRs plan for expansion in 2011, Pitney Bowes Business
Insight recommends the following best practices for successful site
selection:
- Develop spatial interactive models that
factor in location intelligence data – QSRs shouldn’t rely only on
estimates of sales potential to determine new locations
- Understand the factors that most
strongly influence performance and develop sub-models to address
those scenarios, such as sales drivers or site characteristics –
one size does not fit all when it comes to site modeling
- Measure competition adequately – it’s
not enough to analyze radius counts of competition without
considering how store performance is affected by the positioning of
a competitor. Some restaurant concepts benefit from nearby
competition; others don’t
About Pitney Bowes Business Insight
Pitney Bowes Business Insight is a software and services company
that provides solutions to help organizations acquire, serve and
grow relationships with customers and citizens. These solutions
enable lifetime customer relationships by integrating data
management, location intelligence, sophisticated predictive
analytics, rules-based decision making and cross-channel customer
interaction management to increase the value of every customer
communication while also delivering operational efficiencies.
Pitney Bowes Business Insight is a wholly-owned subsidiary of
Pitney Bowes Inc. (NYSE: PBI), a customer communications management
technology leader. For more information, please visit
www.pbinsight.com and www.pb.com.
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