Retailers face a growing challenge identifying prime locations—especially in markets as saturated as Manhattan, where chains like Chipotle already have more than 50 stores vying for consumer attention. That’s when advanced data analysis and sophisticated site selection methodologies step in, helping brands unlock new growth opportunities, explains Kenneth Hochhauser, executive vice president at full-service real estate brokerage RTL, in a conversation with GlobeSt.com.
Having advised Chipotle on its Manhattan strategy since 2001, Hochhauser has witnessed firsthand how takeout and digital delivery have transformed the revenue landscape for food retailers. “Takeout and delivery have become a driving revenue force,” he notes, with digital orders now accounting for 10% to 50% of food and beverage sales, a variable that makes location decisions increasingly complex.
It’s no longer simply a matter of finding an empty corner in Manhattan; new sites must be assessed as infill, where catchment overlaps and cannibalization risks demand careful analysis. “Entering a market for the first time is easier than trying to wedge one into seven existing [locations],” Hochhauser observes. For each site, RTL’s analytics team starts by examining customer demographics provided by the retailer, seeking areas with preponderances of potential customers and their proclivity to purchase the brand’s offerings. Achieving robust top-line revenue remains the initial goal, while bottom-line profit and risk factors come into play later in the process.
RTL employs wealth indexes and American Household Survey data to drill down into market potential and consumer habits. As Hochhauser explains, “Manhattan residents are 2.5 times more likely to order in food than the rest of the nation.” Understanding these behavioral subtleties—whether influenced by entertainment venues, family-friendly fare, residential neighborhoods, parks, or schools—is crucial to forecasting future success and capturing as much spend as possible in a given area.
Ultimately, retailers must evaluate whether a proposed site will add value or merely shift revenue among neighboring stores. As Hochhauser concludes, each decision weighs projected top-line gains against bottom-line potential and considers whether the investment of time and capital will truly be worthwhile.
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