Choosing where a 20-outlet QSR brand should open its next four outlets
The brand wanted to open four new outlets and had to decide between more Tier-1 locations and a first Tier-2 city.
Growth case- A growing QSR brand with 20 outlets
- Client
- QSR
- Industry
- Market & GTM Strategy
- Solution
- 6 weeks
- Duration
Results
- Time to outlet break-even
- 14 → 9 mo
- New-outlet revenue vs. plan
- 112%
- Sales cannibalised from existing outlets
- <5%
The challenge
The brand had grown to 20 outlets across two Tier-1 cities, mostly by taking properties as they became available. Results from recent openings were mixed: one outlet was still below break-even after a year, and another had taken sales from a nearby existing outlet. With capital for only four new outlets, the founders wanted to choose between filling in more Tier-1 locations and entering a Tier-2 city for the first time.
Our approach
How we applied the GROW Framework — from data to decisions and measurable growth.
Linked the performance of all 20 outlets to their surrounding areas: population density, income, offices and colleges, footfall generators, competitor presence and delivery-app order density.
The best outlets depended more on student and office density and on delivery demand than on affluence. Two Tier-1 areas were already saturated, so new outlets there would mostly take sales from existing ones. One nearby Tier-2 city had delivery demand for the category that matched the brand's Tier-1 locations.
Scored 12 Tier-1 areas and 6 Tier-2 cities, and recommended three high-potential Tier-1 locations plus one Tier-2 pilot in a low-cost delivery-led format. Each location came with a sales forecast and a break-even target.
Handed over a simple site scorecard the founders now use for every new location, with monthly tracking of each new outlet against its forecast.
More for scaling & mid-market businesses