Mc Donalds and Burger King

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Retail Location Analysis: A Case Study of Burger King & McDonald’s in Portage & Summit Counties, Ohio

A thesis submitted to the College of Arts of Kent State University in partial fulfillment of the requirements for the degree of Masters of Arts

by

Niti Duggal December, 2007

Thesis written by Niti Duggal
B.A. (Hons), University of Delhi, India 1996 M.A., Jawaharlal Nehru University, New Delhi, India 1998 MPhil, Jawaharlal Nehru University, New Delhi, India 2001 M.A., Kent State University, 2007

Approved by

____________________________________, Advisor Dr. Jay Lee ____________________________________, Chair, Department of Geography Dr. Jay Lee ____________________________________, Dean, College of Arts and Sciences Dr. Jerry Feezel

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Table of Contents

Table of Contents ……………………………………………………………….. iii List of Maps and Figures …………………………………………….………….. v List of Tables …………………………………………………………………… viii Acknowledgments ……………………………………………………………… ix Chapter 1: Introduction …………………………………………………………..…… 1 1.1 Research Objectives ............................................................................ 2 1.2 Summary …………………………………………………..…..……. 4 2: Problem Statements ………………………………………………...……. 6 2.1 Size and Shape of the Retail Trade Area………….……………....…. 6 2.2 Summary………………………………………..………………...….. 9 3: Literature Review ………………………………………………………… 11 3.1 GIS for Business and service Sector Planning ……………………….11 3.2 GIS as a Tool for Retail Location Decisions……………………….... 12 3.3 GIS Methodologies for Retail Location Studies…………………...… 13 3.4 Analysis of Trade Areas………………………………………………19 3.4.1 Simple or Basic Methods of Trade Area Analysis .…………… 19 3.4.2 Gravitational Methods for Trade Area Analysis ……………… 20 3.5 Forecasting the Fast Food Restaurant Sales ………………………… 21 3.6 Identifying the Trading Area of the Fast Food Restaurants ……………….. 26 3.7 Retail Marketing Strategies …………………………………………. 29 3.9 Eating Facilities at Fast Food Restaurants ………………………….. 31 3.9 Pricing Strategies …………………………………………………… 32 3.10 Summary …………………………………………………………... 33

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4: Data and Research Methodology ………………………………….. 35 4.1 Data Preparation ……………………………………………… 4.2 Research Methodology ………………………………………. 4.2.1 Geocoding …………………………………………………. 4.2.2 Catchment Area Analysis …………………………………. 4.2.3 Regression analysis ………………………………………… 4.3 Study Area ……………………………………………………. 4.4 Summary ……………………………………………………... 36 39 39 47 59 66 67

5: Analysis and Discussions …………………..……………………… 69 5.1 Regression Analysis: Enter Method ………………………….. 76 5.2 Regression analysis: Stepwise method ……………………….. 78 5.3 Summary ……………………………………………………... 88 6: Conclusion …………………………………………………………. 90 Appendix: Maps and Figures …………………………………………………. 97 References ……………………………………….…………………………… 130

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List of Maps and Figures:

Chart 4.1: Research Methodology ………………………………………………….. Figure: 1 Burger Kings and McDonalds’ QSR: Portage and Summit Counties ……. Figure 2: Burger Kings and McDonalds’- Portage County ………………………… Figure 3: Burger King and McDonald’s- Summit County …………………………. Figure 4: Distance of Burger King & McDonald’s Restaurants from Major Roads Figure: 5 Burger King and McDonald’s-Portage and Summit Counties (Thiessen Polygons) …………………………………………………………………

38 41 42 43 46

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Figure 14: Burger King & McDonald’s-Portage & Summit Counties (Buffer 1-mile) 55 Figure 15: Burger King & McDonald’s Portage & Summit Counties (Buffer 2 miles) 56 Figure 16: Burger King & McDonald’s Portage & Summit Counties (Buffer 5 miles) 57 Figure: 6 Burger King and McDonald’s in Portage County (Thiessen Polygons) …… 98 Figure: 7 Burger King and McDonald’s in Summit County (Thiessen Polygon) ……. 99 Figure: 8 Burger Kings in Portage County (Thiessen Polygons) ……….………….. 100 Figure: 9 Burger Kings in Summit County (Thiessen Polygons) …………………… 101 Figure: 10 Burger King in Portage and Summit Counties(Thiessen Polygons) .….… 102 Figure 11: McDonald’s in Portage County (Thiessen Polygons)...
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