Chicago area Chick-fil-A stores as an analogue to GTA site selection

Abstract

<p>Site selection is integral to market share and profitability of retail outlets. Geographical similarities between Chicago and Toronto inspired the implementation of an analogue model centred around socioeconomic/demographic data for Chick-fil-A (CFA) expansion into GTA power centres. 1, 3, and 5km concentric rings were delimitated around Chicago store locations, combined variable averages were calculated and compared to Chicago’s regional averages. Median household income, percentage of family households, population density, and residents between 30 -39 and 60 were found to be above average in combined Chicago CFA store trade areas. Analysis of McDonalds, Wendy’s, and KFC spatial relationship with Chicago CFA stores showed no evidence of parasitic behaviour. Results of the analogue model yielded the top 10 suitable power centre nodes in the GTA. Suitable power centres location were found in Richmond Hill, Markham, Mississauga, Oakville, Burlington, Pickering, North York, Etobicoke, and Leaside..</p>