Case Study: Choosing Future Quick

Service Outlets
Introduction

Quick Service Restaurants (QSRs) are an integral part of the food industry,
known for their fast service, limited menus, and affordable prices. The
choice of location for future QSR outlets is crucial for their success. This
case study explores the decision-making process for selecting new QSR
locations, focusing on market analysis, customer demographics,
competition, and other critical factors. We will examine the strategies of a
fictional QSR chain, "Fast Feast," as it plans to expand into new markets.

Background

Fast Feast is a successful QSR chain specializing in burgers, fries, and

shakes. Established in 2010, it has grown to 50 outlets across various
cities. The management team, led by CEO Sarah Thompson, aims to open
20 new outlets in the next two years. To achieve this, they need to choose
locations that promise high foot traffic and profitability.

Market Analysis

The first step in selecting new locations is conducting a thorough market

analysis. This includes studying population density, average income
levels, and consumer behaviour in potential areas.

1. Population Density: Areas with higher population density often

have higher foot traffic, which is beneficial for QSRs. Fast Feast
targets urban and suburban areas with a dense population.
2. Income Levels: The average income of the target area affects
pricing strategy. Fast Feast’s affordable pricing appeals to middle
and lower-middle-income groups. Hence, areas with these
demographics are ideal.
 3. Consumer Behaviour: Understanding eating habits and
preferences is crucial. Areas with a high number of working
professionals and students are targeted because they often seek
quick and convenient meal options.

Customer Demographics

Fast Feast focuses on young adults, families, and professionals who prefer
quick meals. The company uses data analytics to understand customer
demographics better.

1. Age Group: Young adults (18-35 years) are the primary target
group. Fast Feast designs its marketing campaigns to appeal to this
demographic, emphasizing value for money, taste, and
convenience.
2. Lifestyle: Busy professionals and students who have little time for
lengthy meals are another key demographic. Locations near office
complexes, universities, and shopping centres are prioritized.
3. Family-Oriented Areas: Families with children also frequent QSRs.
Fast Feast ensures its outlets are located in family-friendly areas,
offering kid-friendly menus and play areas.

Competition Analysis

Understanding the competitive landscape helps in positioning the QSR

effectively.

1. Direct Competitors: Fast Feast analyses existing QSRs in potential

areas. Areas with fewer competitors or those dominated by other
cuisine types are preferred.
2. Indirect Competitors: These include casual dining restaurants,
food trucks, and convenience stores. Fast Feast evaluates the
presence and popularity of these alternatives.
 3. Gap Analysis: Identifying gaps in the market, such as areas
underserved by QSRs, helps in finding lucrative locations. Fast Feast
uses this strategy to pinpoint opportunities.

Site Selection Criteria

Several factors influence the final decision on site selection. Fast Feast
uses a weighted scoring system to evaluate each potential site based on
these criteria:

1. Visibility and Accessibility: High visibility from main roads and

easy accessibility are crucial. Locations near busy intersections,
shopping malls, and public transport hubs are preferred.
2. Foot Traffic: High pedestrian traffic increases the likelihood of
spontaneous visits. Fast Feast assesses foot traffic during different
times of the day and week.
3. Lease Terms: Favourable lease terms, including rent costs and
lease duration, are important. Fast Feast negotiates leases to secure
the best possible terms.
4. Infrastructure and Facilities: The availability of parking, seating
capacity, and the condition of the premises are considered.
Locations with adequate infrastructure are prioritized.

Technology and Innovation

Fast Feast leverages technology to enhance its decision-making process

and improve operations.

1. Location Intelligence Software: This software helps in mapping

potential sites, analysing demographic data, and predicting foot
traffic.
2. Mobile Ordering and Delivery: Fast Feast integrates mobile
ordering and delivery options to cater to tech-savvy customers.
Locations near areas with high delivery demand are targeted.
 3. Customer Feedback Systems: Feedback from existing outlets
helps in understanding customer preferences and areas for
improvement. This data is used to inform site selection and service
enhancements.

Sustainability and Community Engagement

Fast Feast aims to be a responsible corporate citizen. This includes

focusing on sustainability and engaging with local communities.

1. Sustainable Practices: Locations that allow for the

implementation of sustainable practices, such as waste reduction
and energy-efficient equipment, are preferred.
2. Community Involvement: Fast Feast seeks to engage with local
communities through sponsorships, events, and partnerships with
local suppliers. Locations where such engagement is feasible are
prioritized.

Challenges and Mitigation Strategies

Expanding into new markets involves several challenges. Fast Feast

adopts strategies to mitigate these challenges:

1. Economic Fluctuations: Economic downturns can affect consumer

spending. Fast Feast plans to diversify its menu with budget-friendly
options to maintain customer loyalty during tough times.
2. Regulatory Hurdles: Different areas have different regulations
regarding health and safety, zoning, and business operations. Fast
Feast ensures compliance through thorough research and legal
consultations.
3. Cultural Differences: New markets may have different cultural
preferences. Fast Feast adapts its menu and marketing strategies to
cater to local tastes and traditions.

Implementation and Monitoring

Once locations are selected, Fast Feast follows a structured
implementation plan:

1. Project Planning: Detailed project plans are created for each new
outlet, including timelines, budget, and resource allocation.
2. Staff Training: New staff members are trained to maintain Fast
Feast’s service standards. Existing staff are also trained to manage
new locations effectively.
3. Performance Monitoring: Key performance indicators (KPIs) such
as sales, customer satisfaction, and operational efficiency are
monitored regularly. This helps in making necessary adjustments to
improve performance.

Conclusion

Choosing the right location for new QSR outlets is a complex process that
involves market analysis, understanding customer demographics,
analysing competition, and evaluating site-specific factors. Fast Feast’s
systematic approach, which includes leveraging technology, focusing on
sustainability, and engaging with communities, ensures successful
expansion into new markets. By carefully considering all these factors,
Fast Feast aims to continue its growth while maintaining high standards of
service and customer satisfaction.

MCQ Questions and Answers

1. What is the primary reason for conducting a market analysis

when selecting new QSR locations?
o a) To understand the competitive landscape
o b) To determine menu pricing
o c) To study population density, income levels, and consumer
behaviour
o d) To find suppliers for the restaurant
o Answer: c) To study population density, income levels,
and consumer behaviour
2. Which age group is Fast Feast’s primary target market?
o a) Children under 12 years
o b) Young adults (18-35 years)
o c) Senior citizens (60+ years)
o d) Middle-aged adults (40-60 years)
o Answer: b) Young adults (18-35 years)
3. What type of competitors does Fast Feast consider in its
competition analysis?
o a) Only other QSR chains
o b) Only fine dining restaurants
o c) Both direct and indirect competitors
o d) Only local food trucks
o Answer: c) Both direct and indirect competitors
4. What technology does Fast Feast use to analyze
demographic data and predict foot traffic?
o a) Customer Relationship Management (CRM) software
o b) Location Intelligence Software
o c) Point of Sale (POS) systems
o d) Inventory Management Software
o Answer: b) Location Intelligence Software
5. Why does Fast Feast prioritize locations with high visibility
and accessibility?
o a) To reduce operational costs
o b) To ensure easy delivery logistics
o c) To increase spontaneous visits from pedestrians and drivers
o d) To avoid competition from other QSRs
o Answer: c) To increase spontaneous visits from
pedestrians and drivers
6. What is a key strategy for Fast Feast to mitigate the impact
of economic fluctuations?
o a) Raising menu prices
o b) Diversifying the menu with budget-friendly options
o c) Reducing marketing efforts
 o d) Expanding only in high-income areas
o Answer: b) Diversifying the menu with budget-friendly
options
7. How does Fast Feast engage with local communities?
o a) By offering discounts to local businesses
o b) Through sponsorships, events, and partnerships with local
suppliers
o c) By reducing menu prices for local residents
o d) By only hiring local employees
o Answer: b) Through sponsorships, events, and
partnerships with local suppliers
8. What is an important factor in Fast Feast’s site selection
criteria?
o a) Proximity to fine dining restaurants
o b) Availability of parking and seating capacity
o c) High rental costs
o d) Presence of multiple competitors
o Answer: b) Availability of parking and seating capacity
9. Which practice shows Fast Feast's commitment to
sustainability?
o a) Offering larger portion sizes
o b) Implementing waste reduction and energy-efficient
equipment
o c) Expanding rapidly without considering environmental
impact
o d) Using non-biodegradable packaging
o Answer: b) Implementing waste reduction and energy-
efficient equipment
10. What helps Fast Feast maintain service standards in
new locations?
o a) Hiring only experienced staff
o b) Providing thorough training for new and existing staff
o c) Limiting the menu options
o d) Reducing customer interaction
o Answer: b) Providing thorough training for new and
existing staff