New Site Selection
The APT Suite helps leading QSR escape from a growth trap
The Company
Leading category-specialist QSR (Quick Service Restaurant) chain. Operates a national network of several hundred locations.
The Challenge
The client had grown to the point that it was in virtually every major U.S. mall. It had attempted to expand beyond malls; however, these locations had generated insufficient returns on investment in the past. Since the client could not extend to more malls and since non-mall opportunities appeared to be a bad investment, the retailer feared its opportunities for growth were very limited. APT worked with this client, using the APT Suite, to try to find profitable growth opportunities.
The Solution
APT and the client used the APT Suite to conduct detailed micro-locational modeling to identify the optimal locations within a mall. In doing so, they were able to identify high-ROI mall relocation opportunities.
The client also used the APT Suite to conduct detailed site modeling for non-mall locations. In doing so, we were able to find patterns where non-mall sites were more likely to succeed and where the client could focus its non-mall real estate efforts. In addition, corporate decision-makers were able to use the APT Suite to quickly analyze the potential of any new location. This allowed the client to become much more efficient in its site selection process, through the swift elimination of sub-par sites under consideration.
Results
As a result of the jointly conducted analysis, the client found the growth opportunities it did not believe existed. In addition, the client gained significant process efficiencies in site evaluations. The client measured the benefit of this new approach as $5 million in incremental profit per year.
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