Analyzing and Predicting Starbucks’ Location Strategy

Analyzing and Predicting Starbucks’ Location Strategy

STAX INC  |  

In Boston, it feels like you can’t walk more than a block without seeing a Starbucks. In fact, within about a one-mile radius of Stax’s Boston office in any direction, we have 15(!) Starbucks locations.

Given this, it’s natural to ask: How does Starbucks think about location selection?

At a broader level, what can their store locations tell us about their customer base and what they view as attractive locations to serve this base? Can we infer at a high level where they should or will explore further store expansion?

By analyzing store data and how that maps to Census demographics, we can create a high-level “profile” of what Starbucks has deemed to be a valuable location, in addition to seeing where there may be opportunity to further expand footprint in and around these areas.

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