The Psychology of Selecting the Right Store Location. Why Fast Food Restaurants Cluster?

The Psychology of Selecting the Right Store Location.

Why Fast Food Restaurants Cluster?

Clustering or agglomeration is an interesting concept in spatial economics and brick and mortar retailing. In a nutshell, while the clustering of businesses adds alternative options and competition which is certainly beneficial to consumers, it also creates a centralized district that attracts consumers to the businesses in the first place. Consumers can see what their product options are and who they prefer purchasing from. It also benefits the emerging Safe Shop, Locksmith Shop or Security Center, who are only now moving into the area, because they get to see first-hand exactly what works and what doesn’t work.

Geographic information systems (GIS) are often used to determine where to build new outlets. Fast food chains, compare all sorts of data overlays which allow them to see auto traffic, consumer demographics, safety information, commercial mix, and other factors that saves them significant money when deciding which properties to open up in.

In the case of fast food restaurants, many have increased volume by just creating a "fast food district", while carefully not overpowering the available demand with too many restaurants. The same concept has also developed in the pharmacy industry, gas stations, and auto sales and service centers. They know you have to make a purchase from all of them or at least one of them because they know you’re going to spend your money there one way or another!

As for the security industry... many if not most of the same points will apply, plus if the consumers know where the safe and security district is located they are more likely to make their purchases from a local retailer where they can touch and feel the products, rather than purchasing from an online retailer where they can't... especially for large and expensive purchases such as a gun safe or gun vault that more than likely requires advise or guidance before making a purchase, and a professional installation.

If you are in need of some help with site selection... perhaps we can shed some light on the process. Feel free to phone us for our thoughts. Ultimately the decision is yours.