A system for estimating the proportion of sales that a new location would take from each existing location in the surrounding area.
Similarly to sales forecasting models, encroachment models are completely driven by the actual changes in sales levels your own brand's restaurants have experienced as a result of new, nearby restaurant openings.
Complex spatial (geographic) metrics are developed to better capture true market conditions that are dictating the degree to which new locations impact others.
Advanced processes such as "spatial interaction" analysis, trade area delineation, customer distribution pattern identification, drive-time analysis, market density analysis, franchisee and delivery territory analysis and survey results are typically incorporated to achieve strong results.
Resulting models incorporated into optimal location plan development and integrated into the "Instant Site Intelligence" system.
Better intelligence for assessing the true incremental sales potential of new locations.
Significantly improved determination of true growth potential and targeting of long-term locations across markets.
The encroachment forecasting system can be automated across many location decisions, offering better efficiency and cost savings.