2019/07/05(Source: FCオーナーズ運営事務局)
Location is extremely important in any retail business.
Even with the same person running the same business, the results can vary greatly depending on the location.
Furthermore, once a store is built, the location cannot be easily changed.
Therefore, just as with choosing a franchise company, location selection must be done carefully.
By reading this article, you will gain a basic understanding of location research.
And you will be able to judge the merits and demerits of properties recommended by franchise headquarters.
◼︎ Evaluating Locations Using 'Area,' 'Line,' and 'Point'
It is important to look at a property from the perspectives of 'area,' 'line,' and 'point.'
The area refers to the area or region surrounding the store.
The line refers to the street the store faces.
The point refers to the store itself.
Locations must be comprehensively investigated using these three axes.
No matter how good the area for opening a business is, if the property itself is poor, it will be difficult to create a thriving store.
Conversely, no matter how wonderful the property itself is, if the area is bad, the business will not be successful.
Choose a property based on a balance of the three axes mentioned above.
Incidentally, location research can also be used for profit forecasting.
Investigate the sales performance of stores with similar locations in the franchise you are considering joining.
Of course, performance is greatly influenced not only by location but also by the store's operation, so it cannot be said that it will be exactly the same, but it can be used as a reference when making profit forecasts.
◼︎ Area Research Method
As mentioned, "area" refers to the area or region surrounding the store.
In other words, it is the trading area. The trading area is the range (distance) from which customers can be attracted to the store.
To judge the quality of the trading area, supply and demand analysis is performed.
Demand is the number of target customers within the trading area.
On the other hand, supply is the number of competitors (and the strength of the competition) within the trading area.
An area with more demand and less supply can be said to be a good area to open a business. Furthermore, supply and demand analysis requires not only current figures but also future predictions.
To predict future demand, if you're running a business targeting elementary school children, you would look at the number of preschoolers within your trading area. This will allow you to predict the number of elementary school children several years from now.
On the other hand, to predict supply, for example, you would look at the number of commercial facilities within your trading area. This will give you an idea of the potential for new businesses. Based on this information, you can predict future supply.
If the area around your store is residential, the likelihood of competitors opening is low, and supply is unlikely to increase significantly.
Next, I'll introduce a web service that can be used when analyzing your trading area.
It's called "Shoken Taisho" (Training Area Victory).
http://www.cocohore11.com/
Using Shoken Taisho, you can investigate the above.
In other words, you can find population data for your store's opening area (you can select the area), broken down by age, occupation, family structure, and other factors.
This service costs 5,000 yen per month, with a minimum contract period of 3 months, so please utilize it when searching for properties.
◼︎ Line Survey Method
As mentioned, "line" refers to the street the store faces.
The line survey begins by investigating the number of people passing in front of the store.
Count the number of people passing in front of the store using a counter, broken down by time of day and day of the week.
Also, investigate the foot traffic of your target customers.
The foot traffic in front of the store is particularly important for businesses such as restaurants and convenience stores.
This is because restaurants and convenience stores have a higher proportion of customers who enter simply because they happen to be passing by, compared to other types of businesses.
In addition to the number of people passing by, also check the following item:
【Number of Lanes】
On streets with two or more lanes in one direction, the likelihood of customers coming from the opposite direction is lower.
[Distance from store to traffic light]
If the store is near a traffic light, it will come into the view of consumers while they are waiting at the light, increasing brand awareness.
[Presence of large commercial facilities within view]
For the same reason as above, these facilities will come into the view of consumers, increasing brand awareness.
[Number of streetlights]
For example, if you are running a business such as a tutoring center, parents will be reluctant to send their children to a dark area with few streetlights.
Based on these survey results, we will judge the quality of the street.
◼︎ Point Survey Method
As mentioned, "point" refers to the store itself.
Here is a list of survey items for the store itself:
・Shell property or existing furnished property
→In the case of a shell property, interior design costs will be higher than for an existing furnished property, but you can create the store you want.
・Rent and security deposit/key money
→Understand the market rent around the store, and if it is too high, negotiate the rent with the property owner.
* Floor Number: While it depends on the type of business, the ground floor is preferable for better visibility to consumers.
* Frontage (Width of the store facing the road): A wider frontage increases visibility.
* Signage Possibility: Signage can increase store recognition. Signage includes wall signs, pole signs, projecting signs, and freestanding signs.
* Area (Tsubo): The area determines the maximum number of customers that can be attracted and thus the ceiling of sales. Furthermore, if the store is too large, not only will the rent increase, but utility costs may also be higher.
Evaluate properties based on the above criteria and choose the property with the best cost-effectiveness.
◼︎ Summary
Location research is conducted using three axes: "area, line, and point." Even if one is excellent, it's difficult to create a successful store if the other two are poor. A balance of all three is crucial.
Furthermore, the ideal location will vary depending on the type of franchise, business model, and target audience.
Therefore, it is equally important to deeply understand the franchise business you are joining. Don't rush into choosing a location. Proceed carefully.
[Article Supervisor Profile]
Tsuyoshi Morita
Certified Small and Medium Enterprise Management Consultant
At a major franchise consulting company listed on the First Section of the Tokyo Stock Exchange, he provided support for franchise development in the food and beverage and tutoring sectors. His support included business strategy development, store opening, personnel recruitment, fundraising, and operational support for store management. He later studied business management at a business school (MBA) and currently manages two restaurants in the Philippines. His restaurant, GO GO CAFE, is a highly popular restaurant in Cebu and has been featured in various media outlets. It has been featured on the most well-known information programs and newspapers in the Philippines, and in Japan, on the popular TBS program, "World Summer Resort."
In the future, he plans to work as a franchise management consultant, supporting franchise chains in their overseas expansion into Southeast Asia.
GO GO CAFE https://www.facebook.com/gogocafe.cebu/?ref=bookmarks
AJITO https://www.facebook.com/ajito20150504.cebu/
Help