- What is the primary trade area for a restaurant?
-
For quick-service restaurants, the primary trade area is a 5-minute drive polygon
— the zone where customers make impulse or habitual visits without deliberate trip
planning. For fast-casual and casual dining, the primary extends to 10 minutes. The
secondary trade area (20–25% of customers) typically spans 10–15 minutes for QSR
and 15–20 minutes for casual dining. These are drive-time polygons, not radius
circles; the actual shape depends on the local road network, traffic barriers, and
highway access near the site.
- How far should a QSR locate from a competing unit?
-
Most QSR franchise agreements protect a minimum drive-time separation — typically
5 minutes for convenience-driven categories, 8–10 minutes for fast-casual. But the
minimum separation alone is insufficient: what matters is the overlap of the
5-minute drive polygons from each unit. Two stores 3 miles apart on a straight
arterial may have heavily overlapping trade areas; two stores 1 mile apart across
a river may have minimal overlap. Drive-time polygon cannibalization analysis is
the correct method for evaluating inter-unit competition.
- What population do you need inside a restaurant's trade area?
-
QSR concepts typically require 20,000–40,000 people within a 5-minute drive polygon
for a standalone site; 10,000–20,000 in high-traffic captive locations (airports,
transit hubs, food courts). Fast-casual benchmarks are 25,000–50,000 in the
10-minute primary. These are population thresholds, not traffic-count thresholds
— the two correlate imperfectly, which is why drive-time population data supplements
rather than replaces traffic count studies.