At present, the location of catering stores has changed from the "experience era" to the "data era", and chain enterprises such as McDonald's, KFC and Starbucks have sorted out a set of most "efficient" location methods.

I have made a detailed arrangement for you, and summarized several mainstream location models:

McDonald's: five principles of location

As a 64-year-old multinational restaurant chain brand, McDonald's has opened more than 31,111 stores all over the world, and their summary of "five principles of McDonald's location" has always been regarded as the benchmark of location selection by the industry.

principle 1: target consumer groups (accurately)

McDonald's is targeted at young people, children and their families, and the places frequented by these people or bustling and crowded places must be fully considered when selecting the site.

principle 2: focus on the present and the future (no relocation, aging business district)

McDonald's site selection requirements will remain unchanged for 21 years.

the final determination of each site will take three to six months to inspect, and the focus of the inspection is to see whether it is in line with the development of urban planning, whether there will be municipal relocation and peripheral relocation, and whether it will enter the red line of urban planning.

Never touch the red line, never set up a point in the aging business circle, and never set up a point in the pure residential area in principle.

principle 3: the storefront is eye-catching (choose the street-facing store on the first floor)

The site must be located in the street-facing store on the first floor with transparent floor-to-ceiling windows.

This is to let passers-by feel the cultural atmosphere of McDonald's, and to reflect its business purpose: cleanliness, convenience, safety and value for money.

Principle 4: Don't rush for success (control the rental cost)

The rent in prime locations is often too high. When the rent offered by the landlord exceeds the investment psychological price, McDonald's generally doesn't rush for success, but puts it down first to develop other stores and influence the landlord with the success of other stores.

Principle 5: Advantage interaction (choose well-known business districts)

McDonald's often chooses shopping centers or well-known department stores with high brand awareness and credibility to open stores in stores, which can not only bring tourists, but also attract customers who visit shopping malls to McDonald's.

KFC: 4-step site selection

Today, KFC has more than 5,111 stores in China, and its stores all run through the first, second and third tier cities.

Similar to McDonald's, KFC mostly chooses shops facing the street and uses a lot of transparent floor-to-ceiling glass.

McDonald's "five principles of site selection" are independent of each other, while KFC adopts the "four-step method of site selection", which is a very standardized site selection evaluation process.

Step 1: Draw up a strategy (choose the degree of development)

The developers of KFC should make a three-year development plan for the market, and make a detailed evaluation of the planned market area and development location.

the evaluation content includes the choice of regional development and single store development, and the market layout; And plan and estimate the opening scale and investment of the target market.

step 2: business circle classification

after the development strategy is drawn up, the site selection personnel will classify and evaluate the business circle.

Business districts can be divided into first-class business districts, second-class business districts and third-class business districts, and KFC mostly chooses first-class and second-class business districts for site selection.

Step 3: Selection of business districts (whether the brand is consistent with the tonality of business districts)

After rating the business districts, the staff of the development department began to plan which business districts to open stores in and what are the main site selection objectives.

Different market positioning of catering brands will lead to different choices of business districts.

in the selection criteria of business circle, KFC not only considers its own market positioning (including target consumers/prices, etc.), but also considers the stability and maturity of the business circle.

step 4: store site evaluation (detailed selection)

the choice of store site is to determine the most important gathering point in the business circle, so the choice of gathering point also affects the choice of business circle.

because whether a business circle has major gathering points is an important symbol of the maturity of this business circle.

KFC can evaluate whether there is a large gathering point in a mature business circle or a business circle with development potential by counting the traffic in front of the candidate store.

Kungfu: Five Don't Do

Kungfu is the only China brand among the top five fast food industries in China, and now it has nearly 611 stores and more than 21,111 employees.

don't do it: don't do it in the center of a large business district;

second, don't do it: don't do it without sufficient passenger flow;

three don't do it: don't do it on the relatively closed second floor;

four don't do it: don't do it outdoors without independent and eye-catching advertising signs;

five don't do it: don't do it without the support of the landlord and local authorities.

Starbucks: Location 6 Key

As the largest coffee chain brand in the world, Starbucks has opened over 4,111 stores in 161 cities in China.

Starbucks summed up six key points in site selection:

1. Pay attention to the effective passenger flow and find the gathering point

After selecting the business circle, Starbucks will measure the effective passenger flow, determine the main flow line, select the gathering point, and take the location where the gathering points are not far apart as the location of the store.

because it is on the main flow line of passenger flow, it means that the passenger flow per unit time is the largest; Being in the location of the gathering point means that the crowd will gather here to stop.

2. Identify the target customers, mainly middle-and high-income people.

Starbucks' consumption target in Chinese mainland is middle-and high-income people who pursue taste and fashion, and the comprehensive group age is about 16 to 45 years old.

Only when the consumption strength and quality of life of the consumer groups in a region meet Starbucks' positioning, Starbucks will conduct further investigation according to the specific requirements of site selection.

3. Pay attention to visibility, and the window is the best signboard.

Shop signs and windows are very important for attracting customers and increasing revenue.

Although Starbucks has a high brand awareness, the competition in the coffee industry is fierce. To maintain this advantage, the brand display is very important, and good visibility is a favorable display of the brand.

4. Pay attention to the convenience of transportation, and there will be more sales opportunities only if there is traffic

Convenient transportation and accessibility of the store are important conditions for consumers to choose.

the number of parking spaces, the radiation area of the business district and the number of parking spaces in the radiation area are all considered to increase the rate of guests entering the store.

5. Centralized store opening to reduce distribution costs

When Starbucks started, it once opened two stores face to face on the same street, which is a taboo for general chain enterprises.

from the perspective of cost, the logistics cost can be reduced by increasing the number of stores.

from the perspective of competition, opening a store in a high-quality consumption area can monopolize the market and exclude competitors.

6. The mature environment for opening a store is very important, which can bring long-term and stable benefits to Starbucks.

A mature and stable business environment can make stores generate stable benefits to ensure the growth and stability of corporate income.

Starbucks has also "overturned" because of the change of municipal planning:

Starbucks opened a store in a certain city because of the government's investment attraction. In the first two years, the revenue was very good, but in the third year, the leadership changed and the city was re-planned, which led to the need to build a subway at the door of the store, so customers had to enter the store through the tunnel, and the revenue of the store plummeted.

As the subway construction will take five years to complete, this store has become the only one operated by Starbucks in China at a recent loss, and Starbucks headquarters once considered whether to close the store.

When Starbucks executives resumed their offer, they said, "If we enter this business circle 2-3 years later, we may be able to avoid this problem. It doesn't matter if the rent is higher."

Conclusion:

Site selection is the most important thing in opening a store, which directly determines the "success or failure" of a store.

In this article, we have analyzed how well-known brands choose their locations, and we can see that they share the same emphasis:

What is the rating of the business district, whether the tonality is consistent, whether the business district is stable, whether the store is eye-catching, what is the rental cost, and where is the gathering store ...

Small and medium-sized enterprises are not as powerful as KFC and McDonald's when choosing their locations, so it is difficult to grab the core of well-known business districts.

however, we can learn from the location ideas of mature brands, so that we can avoid detours on the way to open a store.