Question 7: In the Appendix (Chapter 16 "Appendix: A Sample Business Plan"), you will find the business plan for Franks All-American BarBeQue. This plan examined several possible locations for a second restaurant. Frank and Robert considered several factors when evaluating alternative towns as possible locations. Some of these included population size, average income, travel times, and percentage of population. Based on the data, they selected Darien, Connecticut. Do you agree with the decision? Why or why not? Do you think other factors should have been considered? If yes, what would you recommend?

Company Locations and Facilities

Franks All-American BarBeQue has been in Fairfield, Connecticut, for decades. It has a reputation throughout the southern Connecticut shore region for excellent food and has received numerous awards. The management team determined that a second location could tap into this local name recognition. Several towns in the region were evaluated for total population, population density, family income, and home value. These factors were considered because of their impact on generating traffic and consumers being able to pay for meals that are priced slightly higher than typical fast-food outlets. In addition, the average family size and the percentage of family households were considered because Franks is a family restaurant. Lastly, data were gathered on the average travel time to and from work for residents and the real estate tax rate. Because the new location of Franks will emphasize prepared meals, we felt that individuals with longer commutes would be more likely to order meals and pick them up at Franks. A summary of these data is provided in Table 16.2 "Demographic Data for Selected Connecticut TownsPart 1" and Table 16.3 "Demographic Data for Selected Connecticut TownsPart 2".

After thorough analysis, it was concluded that Darien, Connecticut, would be the best location for the new branch of Franks All-American BarBeQue. It has a high-income population and a high population density, and a large percentage of its inhabitants are members of family households. They have longer commuting times, which increase the potential need for prepared meals.

Table 16.2 Demographic Data for Selected Connecticut TownsPart 1

Item	Fairfield	Westport	Easton	Darien	Norwalk
Population	57,578	25.884	7,383	19,375	83,802
Population density	1,917	1,293	269	1,508	3,675
Income	$108,209	$155,322	$162,688	$180,474	$79,693
House value	$589,179	$1,169,081	$868,622	$1,430,589	$504,100
Percentage of family households	72.6%	74.6%	84.3%	81.7%	64.1%
Travel time (minutes)	31.3	39.4	34.8	36.4	25.4
Real estate tax rate	1.3%	0.9%	1.3%	0.8%	1.1%
Family size	3.07	2.70	3.0	3.0	2.50

Table 16.3 Demographic Data for Selected Connecticut TownsPart 2

Item	Stamford	Weston	Wilton	Trumbull	State of Connecticut
Population	121,026	10,199	17,771	34,422	3,574,097
Population density	3,206	515	659	478	739/sq. mile
Income	$81,206	$190,080	$183,252	$103,019	$68,595
House value	$612,900	$1,198,615	$1,044,316	$492,623	$306,000
Percentage of family households	63.8%	84.9%	82.3%	81.5%	67.7%
Travel time (minutes)	24.0	41.6	39.2	27.1
Real estate tax rate	0.7%	1.1%	1.2%	1.5%	1.8%
Family size	2.50	3.0	3.25	2.80

A specific location has been identified in Darien for the second Franks All-American BarBeQue. It is in a small mall and is large enough to have a seating capacity of 150160 plus takeout facilities. The mall has more than adequate parking for future customers. The mall is located three blocks from the Metro-North Darien railroad station and is four blocks from the I-95 exit. It is therefore well positioned to attract traffic from both car and rail commuters. The lease fee for a three-year contract is very reasonable for a property of this size.