When it comes to starting a new fast-food chain, what is the primary concern? The location, of course. There have been so many small scales and large-scale businesses that have come and gone – disappeared into oblivion, owing to their location. Look, the truth is, if people are ordering in, they want it to be from a place that’s nearby – since that’s more trustworthy and quicker. For pizza stores, this is all the more poignant. Most pizza stores now offer the “delivery within 30 minutes or free” scheme. That wouldn’t be feasible if the locations aren’t taken into concern. The destination has to be calculated properly in order for the store to flourish. Let’s take a look at how clustering in the case of pizza stores would be able to enhance the location detection process.
Analyze your market – get your facts right
Well, yes, everyone loves pizza. It’s handy, hassle-free and the most convenient kind of fast food available. You’re hungry, what do you look for? Pizza! Thus, it would be safe to say that when speaking of pizza stores, the target audience is going to be pretty broad. Pizza stores bring in all kinds of customers, thus it would be inadequate to settle down on only one kind of customers. Narrowing your visions, in this case, would be the wrong way to go about it. Once you open your pizza store, it would be advisable to keep an eye on your sales –
- From where are your orders most frequently coming?
- What age group, or what demographic forms a larger chunk of your customers? Study your customers.
- Carry out a thorough location analysis in order to make the most of location detection process.
- Also, you must take into account your competitors in the same geographical location or in the vicinity. Pizza is pretty common, and you’re bound to have at least one competitor in the location. If they’ve been around longer, chances are, they’ll have more customers initially. You need to study their pattern as well – what kind of customers do they attract? What locations are they delivering to? These are the very basics of running a business, and it is high time you got your facts right.
How many pizza outlets do you need?
In your city, you’ll see the various branches of the same pizza outlet almost everywhere you go? So, what’s the point of opening so many stores in the same city? And most importantly, what should be the optimum distance between the different stores? If you thought the choice was random, you couldn’t be more mistaken. When a customer calls up a pizza outlet, he’ll be calling the one nearest to his home. That is common sense. So if you are planning to cover delivery over the entire city, you would have to open up quite a number of stores. Based on the location detection process, as mentioned in the previous section, you would have to carry out thorough research of the city map. Check the proximity to transportation facilities like metro or railway stations. Also, keep in mind your target audience. Most of your orders are going to be from a bunch of hungry teenagers who stay in hostels or as paid guests or in rented flats with no food supply. For them, pizza is a staple diet. A careful analysis of such locations would tell you where you are likely to experience more profit. So if you come across an area in the city where there are more hostels or students residing, it is imperative that you open up a store in the same location. Relocating your stores could have a major impact on your sales.
Come up with efficient delivery plans
Look, if people are calling you up to order pizza, they expect you to deliver tasty food in a short span of time. If you have the 30 minutes delivery policy, that means you’re going to have to take into account the distance between your location and the destination. This is why clustering is considered to be an ideal business plan, as far as fast food outlets are concerned. As a matter of fact, clustering is used as a marketing method in different areas around the world. Basically, this refers to a group of small projects forming a kind of cluster. This interesting new marketing method called clustering basically improves the customer base of a company and also emphasizes target areas. It helps track patterns based on similarities and differences and comes with efficient business plans for the same. Clustering also takes into account the type, value, and geographical locations and helps in their identification and grouping which makes it further possible to improve the process. There are algorithms available which make it all the more convenient when it comes to the location detection process. For pizza stores, clustering can help determine where and at what locations the pizza outlets may be opened. For instance, a renowned pizza chain used clustering in order to determine what would be an optimum location for them if they were to relocate. Post relocation, they noticed a remarkable surge in profits – at least 10 %. When it comes to any kind of business, what makes or breaks your company is the business plan you have backing you. Location, without a doubt, is of primary importance while considering fast food outlets – for instance, pizza. Without location detection process to guide you, you might very well be incurring in huge losses which could be fatal for your business.
You can do clustering analysis using Bizstats cloud by asking your questions. If you are not tried Bizstats yet, you can try our demo now!
