In simple terms, market planning is the evaluation of a market place to determine viability for your business. Believe it or not, this is the single most overlooked process for multi-unit restaurant expansion. Unfortunately most restaurateurs believe this service is being provided by those who present new site opportunities for consideration. There may be some due diligence being performed by others, but most of the time, it is a truncated process and substantially over simplified.
Market planning is not for the novice! It is an extremely thorough thought process that takes years to properly develop. There are a lot of companies out there today that sell software programs that generate ‘heat maps’ of interest for concepts to consider when choosing their next location. Usually these systems are created by ‘cubicle experts’ and not ‘field experts’. There is a huge difference between those that simplify data into algorithms and those can combine analytics with actual field knowledge and experience.
One critical part of the market planning process is to know the ‘scalability’ of your business. Are you going to share the pie with other businesses in your cuisine…
In order to know where the lowest hanging fruit is in your targeted market for growth, you have to first analyze what drives sales to your existing successful business.
This is by far the most challenging and rewarding component of market planning! Imagine looking into a crystal ball and trying to forecast the future sales and profit
A well vetted market plan should identify all potential non-traditional development opportunities within a target market for expansion.
Building your brand through a bricks and mortar only strategy requires a whole lot of patience and capital, which are both usually in very short supply.
Proper market planning requires an in depth analysis on multiple areas that are best suited for your specific goods and/or services. But how do you analyze the trade area…