Location intelligence helps QSR brands avoid costly expansion mistakes

Accurate data and strategic planning drive profitability.

Businesses across Asia’s quick-service restaurant (QSR) sector are shifting from traditional methods to fully digitised, data-led processes, enabling more precise decision-making and optimised investments, according to Tim Shaw, Director for Market Planning, GapMaps.

"In a relatively short period, we've now transitioned to a fully integrated, fully digitised and fully data-led market planning process,"  said Shaw.

Shaw highlighted that the widespread adoption of location intelligence has significantly lowered costs and improved data quality, allowing even smaller QSR operators to benefit. "Twenty-five years ago, investment in location intelligence and market planning was certainly available, but the costs were very high for organisations, and the data quality was relatively poor," he said. "That’s now changed very quickly and dramatically."  

Shaw also noted that strategic location planning has a direct impact on profitability. "The relationship between store revenue and store profitability is not a linear one," he explained. "If a whole network is built on optimised locations, the benefit to profitability is very, very significant."  

With rising expectations from private equity investors and large industry players, the QSR sector is under pressure to maximise returns and make data-driven decisions. "Businesses are introducing very, very well-informed market planning and location intelligence processes to ensure they are putting stores in the right places," Shaw added.  

To effectively leverage location intelligence for expansion, Shaw emphasised the importance of continuous investment in updated data and insights. "Businesses who might have explored location intelligence two or three years ago shouldn’t make the mistake of thinking that the decision they made then is still the best for their business today," he said.  

He highlighted the improvements in data accuracy, granularity, and update frequency, which now provide businesses with timely insights. "It's now expected within our sector that demographic and consumer spending data is updated on an annual basis," he said.