Site selection strategy for restaurant chain expansion in urban districts based on maximization of customer attraction and profitability

ACKNOWLEDGEMENTS: This work was Supported by National Key Laboratory of Science and Technology on Helicopter Transmission(Nanjing University of Aeronautics and Astronautics)(Grant No. HTL-O-20K01) and Changzhou Science and Technology Planning Project(CE20225067).

Authors

  • Yuantong Kong Changzhou Institute of Technology, Changzhou, China Author
  • Chenxuan Song Changzhou Institute of Technology, Changzhou, China Author
  • Zhaoqing Zhu Changzhou Institute of Technology, Changzhou, China Author
  • Dongping Sheng* Changzhou Institute of Technology, Changzhou, China Author

Keywords:

Commercial Zone; City Center; Suburban Area; Labor Costs; Site Selection Optimization

Abstract

This paper proposed a effective method for the restaurant chain's expansion plans in a certain district. In order to identifying the most lucrative location selection for the new branch, a mathematical model algorithm based on the maximized profit and minimized risk is established by taking various factors into consideration, including the demographic preferences, market demand assessment, rental and labor cost evaluation, and so on. The site optimization mathematical model ensures a data-driven approach to maximize customer attraction and increase profitability significantly. According to restaurant chain's expansion plans, the population distribution was analyzed firstly, and the market demand at different area was investigated as well. Secondly, the factors including rental and labor cost are analyzed at the different area of the district. By taking the above factors into consideration, the mathematical model for site selection is built, which could be used to optimize the site selection and assist the decision of the restaurant management team significantly.

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APA:

Kong, Y., Song, C., Zhu, Z., & Sheng, D. (2023). Site selection strategy for restaurant chain expansion in urban districts based on maximization of customer attraction and profitability. International Scientific Technical and Economic Research, 1(4), 57–70. http://www.istaer.online/index.php/Home/article/view/No.2320

GB/T 7714-2015:

Kong Yuantong, Song Chenxuan, Zhu Zhaoqing, Sheng Dongping. Site selection strategy for restaurant chain expansion in urban districts based on maximization of customer attraction and profitability[J]. International Scientific Technical and Economic Research, 2023, 1(4): 57–70. http://www.istaer.online/index.php/Home/article/view/No.2320

MLA:

Kong, Yuantong, Chenxuan Song, Zhaoqing Zhu, and Dongping Sheng. "Site selection strategy for restaurant chain expansion in urban districts based on maximization of customer attraction and profitability." International Scientific Technical and Economic Research, 1.4 (2023): 57-70. http://www.istaer.online/index.php/Home/article/view/No.2320

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Published

2023-12-28 — Updated on 2025-01-16

Issue

Volume. 1, No. 4 (December 2023)

Section

Research Article

License

Copyright (c) 2023 International Scientific Technical and Economic Research

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

This work is licensed under the Creative Commons Attribution International License (CC BY 4.0).

How to Cite

Site selection strategy for restaurant chain expansion in urban districts based on maximization of customer attraction and profitability: ACKNOWLEDGEMENTS: This work was Supported by National Key Laboratory of Science and Technology on Helicopter Transmission(Nanjing University of Aeronautics and Astronautics)(Grant No. HTL-O-20K01) and Changzhou Science and Technology Planning Project(CE20225067). (2025). International Scientific Technical and Economic Research , 57-70. https://istaer.online/index.php/Home/article/view/No.2320

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