CASE STUDY $5\mathrm{.}2$: DETERMINING THE NEW FAST$-$FOOD RESTAURANT

LOCATION FOR ALWAYS FRESH

You have been hired as a consultant to do a location analysis

for Always Fresh, a rapidly growing national chain of fast$-$food

restaurants. Originating in Southern California, the chain has

expanded into several major cities, including Phoenix, Las

Vegas, Dallas, New York City, Boston, and Chicago. The com$-$

pany is now exploring the idea of opening a fast$-$food restau$-$

rant in the Washington, DC metropolitan area with a focus in

the state of Virginia. The following cities have been determined

as potential locations: Alexandria, Fairfax, Falls Church, and

Fredericksburg. Senior management has identified the sites in

these cities and is asking you to evaluate them for a new fast$-$

food restaurant.

Ideally, the company wants to locate the new restaurant in a

place that has high visibility; high traffic density; the right demo$-$

graphics $($e$.$g$.,$ high number of young people and households with

children, and high number of middle$-$income groups$)$; ample

parking space; accessibility $($e$.$g$.,$ access to major highways and

access by public transportation$)$; low crime rates; large space;

and affordable rent. The company wants to avoid sites with a high

density of competing businesses, but considers entertainment

and recreation$-$type businesses complementary to its restaurant

business. The company also wants to be away from declining eco$-$

nomic areas.

After lengthy interviews with the senior managers and

further market research, you have determined that the criti$-$

cal location factors have the following weights in terms of their

importance:

Visibility: $0\mathrm{.}2$

Traffic density: $0\mathrm{.}1$

Demographics: $0\mathrm{.}2$

Parking space: $0\mathrm{.}1$

Accessibility: $0\mathrm{.}1$

Crime rate: $0\mathrm{.}05$

Space size: $0\mathrm{.}05$

Affordability of the site: $0\mathrm{.}05$

Surrounding businesses and competitors: $0\mathrm{.}1$

Economic climate: $0\mathrm{.}05$

You have visited the specific restaurant sites and worked

with the senior management to determine the pros and cons

of each site.

Alexandria. Pros: very high visibility, high traffic

density, very high accessibility, very low crime rate, high

population base, and right demographics. Cons: very little

parking space, space size restrictions, very high rent, high

number of competitors$-$moderate to high number of

complementary businesses, and positive economic climate.

Fairfax. Pros: high visibility, moderate to high traffic

density, high accessibility, right demographics $($but

small population size$),$ enough parking space, good site

space, and moderate to low rent. Cons: moderate to high

crime rate, high number of competitors$-$moderate to

low number of complementary businesses, and positive

economic climate.

Falls Church. Pros: moderate to high visibility, low crime

rate, right demographics $($but small population size$),$

abundant parking space, good site space, affordable rent,

low number of competitors$-$moderate to low number of

complementary businesses, and positive economic climate.

Cons: limited accessibility and limited traffic density.