I’m not sure about the situation in the poster’s location. Now I’ll tell you KFC’s site selection criteria for you to compare.
It is understood that McDonald’s site selection is mainly divided into the following steps:
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First, market research and collection of data and information. Including population, economic level, consumption power, development scale and potential, income level, as well as the grade, development opportunities and growth space of the business district in the preliminary study.
Secondly, evaluate properties in different business districts. Including people flow testing, customer ability comparison, visibility and convenience considerations, etc., to get the best location and reasonable choice. On the basis of understanding the market price, area division, project property supporting conditions and property rights, we conduct sales estimates and financial analysis to ultimately determine whether the location has the ability to open a McDonald's restaurant.
Finally, investment in a store is a decision that involves risks and can bring high returns, so we need to pay more attention to market positioning and price levels, taking into account not only the level of return on investment, but also the level of return on investment. Stable income in the medium and long term, so that risks can be better controlled and investment returns can be achieved.
KFC’s location selection secrets
Location is the primary factor in hotel operations, and the same is true for restaurant chain operations. The correct location selection of a chain store is not only a prerequisite for its success, but also a prerequisite and foundation for the standardization, simplification and specialization of chain operations. Therefore, KFC attaches great importance to the location selection of fast food restaurants. Location decision-making is generally a two-level approval system, with the approval of two committees, one is the local company and the other is the headquarters. Its site selection success rate is almost 100%, which is one of KFC's core competitiveness.
Follow the following steps to select a KFC location.
1. Division and selection of business districts
1. Divide business districts
When KFC plans to enter a certain city, it first collects information about the area through relevant departments or professional survey companies. Some information is exclusive, and some information requires money to buy. After buying all the information, we started planning the business district.
Business district planning adopts a scoring method. For example, there is a large shopping mall in this area. The shopping mall turnover is 10 million yuan, which is counted as one point, and 50 million yuan, which is counted as 5 points. If there is a bus line, how many points will be added? points, how many points are added for having a subway line. These scoring standards are a more accurate experience value averaged over many years.
Business districts are divided into several categories by scoring. Taking Beijing as an example, there are municipal-level commercial types (Xidan, Wangfujing, etc.), district-level commercial types, fixed-point (target) consumption types, and community types. type, travel type, etc.
2． Selecting a business district
means determining which business district you are currently focusing on opening stores in and what your main goals are. In terms of criteria for choosing a business district, on the one hand, the market positioning of the restaurant itself must be considered, and on the other hand, the stability and maturity of the business district must be considered. The market positioning of restaurants is different, the customer groups they attract are different, and the choice of business districts is also different.
KFC and McDonald's have similar market positionings and basically have the same customer base, so they also have the same choice of business districts. You can see that in some places on both sides of the same street, there is McDonald's on one side and KFC on the other. The maturity and stability of the business district are also very important. For example, the planning bureau said that a certain road should be opened and where to set up an address. This area may become a mature business district in the future, but KFC must wait until the business district is mature and stable before entering. For example, how profitable will this store be in 3 years? , it is not helpful now, will we lose money in the next three years? It costs KFC several million yuan to invest in one store. Of course, not taking such risks must be a relatively stable principle to ensure that every store is successful.
2. Calculation and selection of gathering points
1. It is necessary to determine where the main gathering points are in this business district.
For example, Huaihai Road in Shanghai is a very mature business district, but it is impossible for any location on Huaihai Road to be a gathering place for customers. There must be the most important location for gathering customers. The principle of KFC store opening is: strive to open stores in and near the places with the most customers.
In the past, there was an old saying that “one step can lead to three cities.”
One step away from the store address may result in a 30% loss in sales. This is related to the flow of people (route of people flow). Someone may come here and it is time to turn, then this place is the place where customers come. Isn’t it said Muyinjian? Fanhuan Sifu What is the line of people's flow? In this area, which direction do people go after coming out of the subway, etc., these are all Send someone to check the meter and take measurements. Only after you have a complete set of data can you determine the address.
2． When selecting a site, you must consider whether the main flow lines of people will be intercepted by competitors.
For example, there is a KFC store on the side of the road in a certain community, and the customer flow mainly goes westward. If you go 100 meters to the west, it would be inappropriate for a competitor to open a Western-style fast food restaurant, because the main customer flow comes from the east. If you open it to the west, a large amount of customer flow will be intercepted by KFC, and the efficiency will not be good.
The location selection of McDonald’s and KFC actually has a lot of reference significance for our individual investors. Although it is impossible for us to do as many complicated calculations as they did, many of their useful ideas are still worth learning, which can make us more accurate when choosing the location of our own stores
KFC’s review of fast food restaurants Site selection is taken very seriously, and site selection decisions generally follow a two-level approval system, with the approval of two committees, one for the local company and the other for the headquarters. Its site selection success rate is almost 100%, which is one of KFC's core competitiveness.
Usually KFC site selection is carried out according to the following steps:
(1) Division and selection of business districts
1. Divide business districts
When KFC plans to enter a certain city, it first collects information about the area through relevant departments or professional survey companies. Some information is free, and some information requires money to purchase. After buying all the information, we started planning the business district.
Business district planning adopts a scoring method. For example, there is a large shopping mall in this area. The shopping mall turnover is 10 million yuan, which is counted as one point, and 50 million yuan, which is counted as 5 points. If there is a bus line, how many points will be added? points, how many points are added for having a subway line. These scoring standards are a more accurate experience value averaged over many years.
Business districts are divided into several categories by scoring. Taking Beijing as an example, there are municipal-level commercial types (Xidan, Wangfujing, etc.), district-level commercial types, fixed-point (target) consumption types, and community types. Type, social, business type, travel type, etc.
2． Selecting a business district
means determining which business district you are currently focusing on opening stores in and what your main goals are. In terms of criteria for choosing a business district, on the one hand, the market positioning of the restaurant itself must be considered, and on the other hand, the stability and maturity of the business district must be considered. The market positioning of restaurants is different, the customer groups they attract are different, and the choice of business districts is also different.
For example, Malan Ramen and KFC have different market positionings and different customer groups. They are two "intersecting" circles. Some people eat KFC and Malan Ramen. Some people may never eat KFC and only eat Malan Ramen. There is also the opposite. The location of Malan Ramen is of course different from KFC.
KFC and McDonald's have similar market positionings and basically have the same customer base, so they also have the same choice of business districts. You can see that in some places on both sides of the same street, there is McDonald's on one side and KFC on the other.
The maturity and stability of the business district are also very important. For example, the planning bureau said that a certain road should be opened and where to set up an address. This area may become a mature business district in the future, but KFC must wait until the business district is mature and stable before entering. For example, how profitable will this store be in three years? , it is not helpful now, will we suffer losses in the next three years? It costs KFC several million to invest in one store. Of course, not taking such risks must be a relatively stable principle to ensure that every store is successful.
(2) Calculation and selection of gathering points
1. It is necessary to determine where the main gathering points are in this business district.
For example, Beijing Xidan is a very mature business district, but it is impossible for any location in Xidan to be a gathering point for customers. There must be the most important location for gathering customers. The principle of KFC store opening is: strive to open stores in and near the places with the most customers.
In the past, there was an old saying that “one step can lead to three cities.” One step away from the store address may result in a 30% difference in sales. This is related to the flow line (the line of people's flow). Someone may come here and turn around, then this place is out of reach for guests. It is almost the same as a small alley, but the business is much different. These must be taken into consideration when selecting a site.