Location Predictions and Justifications Who will normally eat at a fast food restaurant, specifically talking about economic class? 1. http://www.ucdmc.ucdavis.edu/medicalcenter/features/2011-2012/12/20111215_fast-food.html According to this website, it said that the majority of people that eat at fast food restaurants are the middle class people. Many other websites verified that middle class people tend to eat at fast food restaurants more often than any other class. The article also said that people that go to fast food restaurants tends to stop going as often if a family income is $60,000 or above. This is due to them wanting higher quality food. However, not many sub regions had a median income of more that $60,000. This didn’t help really help us narrow down the search for a Taco Bell location yet. But it helped us know what income families would actually eat at our Taco Bell. So, we wanted to then find out exactly what people the middle class consists of. Who is considered to be in the middle class, specifically looking at income? 2. http://work.chron.com/average-yearly-income-middle-class-family-16547.html 3. http://q1077.com/in-texas-middle-class-means-you-earn-almost-50k-per-year/ 4. http://money.msn.com/how-to-invest/9-ways-to-know-if-youre-middle-class Based on these three websites and the research, we came to the conclusion that the middle class income is somewhere around $30,000 – $75,000 and possibly higher. The sources varied some. The 2nd source says that the middle class can even go up to $200,000, but we chose a reasonable income that is not too high or too low for people that would have a chance of eating out at our Taco Bell locations. We mainly needed to find our how low the middle class went. We are going to choose to put our Taco Bell locations in a sub region that the income is close to $30,000 – $75,000. We put red boxes around any sub region that did not have a median income between $30,000 – $75,000. This helps us narrow down our search for Taco Bell locations greatly by putting red flags (boxes) where the location should probably not be. Next, we wanted to find out who normally eats at Taco Bell compared to other fast food restaurants. What are the demographics of who normally eat at Taco Bell compared to other fast food restaurants? 5. http://www.pewsocialtrends.org/2006/04/19/eating-more-enjoying-less/ 6. http://www.gallup.com/poll/163868/fast-food-major-part-diet.aspx 7. http://www.valassis.com/by-industry/food-service/consumer-demographics-by-qsr.aspx Based on the 5th website, we found out that men like to eat at fast food places more often, and it is better to have a fast food location in a place where there are people from the age of 18 – 49. We found that the older you get, the less likely you’ll eat at a fast food restaurant. Based on the 6th website, we found that men eat more fast food weekly than women. This website also showed that “Hispanics” eat at fast food restaurants 53% of the time at least weekly and “Blacks” 52% of the time at least weekly. “Non-Hispanic Whites” eat out 46% of the time at least weekly. So, we concluded it is good to have a population that has nearly an equal amount of all three races with “Non-Hispanic Whites” being a little less than Hispanics and Blacks as well as there needs to be more men than women. The 6th website is perhaps the most important facts of everything. The things that we should be looking for are the following: (bold is Taco Bell stuff) (Yellow = this is good) (Red = watch out for this) All Consumers Burger King McDonald's Subway Taco Bell Wendy's Total U.S. 100% 23% 46% 28% 21% 22% Gender Male 49% 111 101 105 103 105 Female 51% 90 99 96 97 95 Marital Status Married 55% 93 99 98 93 97 Never Married (Single) 27% 118 108 115 123 112 Widowed/Separated/Divorced 17% 94 89 82 85 90 Age Range 18-24 12% 123 119 128 146 121 25-34 18% 115 118 116 126 111 35-44 18% 107 114 112 110 112 45-54 19% 96 97 101 99 99 55-64 15% 90 84 86 77 87 65+ 17% 75 71 63 52 73 Ethnicity White 67% 92 95 98 98 101 African American/Black 11% 133 115 111 104 131 Asian 3% 88 97 105 93 72 Other-Non-Hispanic 3% 93 98 101 108 91 Hispanic 16% 115 110 101 104 83 Annual HHI Less than $25,000 15% 107 96 85 97 89 $25,000 to $34,999 13% 113 105 93 105 95 $35,000 to $49,999 19% 107 102 99 105 102 $50,000 to $74,999 17% 104 105 105 106 109 $75,000 to $99,999 14% 96 102 109 102 107 $150,000 or more 22% 81 93 106 88 97 This data further helped us choose a good location by choosing a sub region that is similar to this data. Is there much traffic where we predict our location should be? 8. http://www.txdot.gov/apps/statewide_mapping/StatewidePlanningMap.html The last thing we wanted to make sure was that my choices had plenty of traffic. We used the link to see if the traffic is good for the each of our Taco Bell locations. 75702 - Map with Proposed Taco Bell location Latitude: 32.345912 Longitude: -95.297330 75702 - Map with Proposed Taco Bell location Property Price & Address: For Sale = $75,000 421 South Oakland Avenue, Smith County, Tyler, TX, 75702 Justification: We found that the best location to build a Taco Bell would be near the sub regions of 9 & 11 or 14 & 16 for the 75702 zip code area. We looked all of the sub regions that were similar to all of the information stated above (pages 1-3) for what people actually eat fast food, specifically Taco Bell. The demographics were good. The sub regions that were in a two-mile radius were ideal. Also, there were plenty of competitors within the four-mile radius that would help attract more people to come near our Taco Bell. The Taco Bell is somewhat by itself, which will leave customers to choose us over having to drive further away to grab a bite to eat. The price of the property was very cheap that was a big priority and was located in the 18th sub region that is right next to the 16th sub region. Traffic Counts: The traffic count was considered to be one of the most predicted traffic flowing areas in Tyler. Traffic was not a major concern with this zip code. No other road had a better traffic prediction. Community Competitors: (Four-mile radius) KFC, Whataburger, Church’s Chicken (2), Subway (2), Wendy’s, McDonald’s Community Demographics: (Two-mile radius) (Red = not ideal) (Green = ideal) Population Sub ZipCode Region 75702 75702 75702 75702 75702 75702 75702 75702 75702 75702 75702 75702 75702 75702 75702 75702 75702 75702 75702 75702 75702 75702 75702 75702 75702 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 27 28 29 30 31 Total 788 610 1,169 925 1,141 1,106 2,644 775 1,733 781 2,626 1,385 1,291 1,251 975 1,151 1,290 636 938 860 1,547 1,006 1,638 647 1,613 White N 66 39 135 49 52 258 655 2,110 823 469 1,079 566 89 161 252 42 21 36 126 116 261 466 62 18 59 % 8.4% 6.4% 11.5% 5.3% 4.6% 23.4% 24.8% 27.2% 47.5% 60.1% 41.1% 40.9% 6.9% 12.9% 25.9% 3.7% 1.6% 5.7% 13.5% 13.5% 16.9% 46.4% 3.8% 2.8% 3.7% Black N 672 547 577 252 375 70 359 27 221 99 493 488 396 337 401 637 878 566 378 680 440 486 928 371 1,445 % 85.6% 90.0% 49.4% 27.3% 32.9% 6.3% 13.6% 3.5% 12.8% 12.7% 18.8% 35.3% 30.7% 27.0% 41.2% 55.4% 68.2% 89.1% 40.4% 79.2% 28.5% 48.4% 56.7% 57.5% 89.8% Asian N 10 - % 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Hispanic N 38 22 457 623 713 776 1,628 499 627 213 1,018 329 805 748 310 470 389 33 431 54 844 52 630 249 82 % 4.8% 3.6% 39.1% 67.4% 62.5% 70.3% 61.6% 64.7% 36.2% 27.3% 38.8% 23.8% 62.4% 59.9% 31.9% 40.9% 30.2% 5.2% 46.1% 6.3% 54.9% 5.2% 38.5% 38.6% 5.1% American Multirace Indian N % N % 0.0% 9 1.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 11 1.5% 24 3.1% 0.0% 60 3.5% 0.0% 0.0% 18 0.7% 15 0.6% 0.0% 1 0.1% 0.0% 0.0% 0.0% 3 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 9 1.0% 0.0% 0.0% 0.0% 0.0% 13 0.8% 3 0.2% 0.0% 7 1.1% 0.0% 24 1.5% The People Residents Median Other Unemployment Below Poverty Residnet Age N % % % 0.0% 17.8% 37.7% 49.1 0.0% 1.0% 33.8% 45.9 0.0% 9.1% 13.8% 29.3 0.0% 4.4% 38.5% 20.5 0.0% 1.1% 30.4% 30.0 0.0% 5.7% 36.8% 28.3 0.0% 6.2% 29.6% 24.9 0.0% 3.6% 8.8% 28.0 0.0% 3.5% 22.8% 31.3 0.0% 4.7% 24.1% 32.4 0.0% No Data 24.7% 34.5 0.0% 3.5% 24.3% 23.1 0.0% 2.5% 26.2% 28.7 0.0% 1.5% 16.4% 31.9 0.0% 1.8% 45.8% 28.0 0.0% 6.6% 26.6% 24.2 0.0% 6.0% 31.5% 45.8 0.0% 3.0% 21.3% 50.0 0.0% 1.3% 19.4% 34.2 0.0% 5.0% 50.2% 12.7 0.0% 11.0% 31.2% 22.3 0.0% 1.0% 27.4% 13.2 0.0% 5.9% 32.2% 26.6 0.0% 11.3% 33.8% 46.9 0.0% 5.6% 39.7% 30.0 Households Male Female 40.5% 47.0% 53.1% 46.7% 53.8% 61.5% 51.6% 41.4% 49.4% 49.3% 51.4% 53.8% 51.0% 58.5% 55.3% 49.7% 48.5% 54.9% 39.4% 45.9% 44.5% 48.5% 50.6% 44.4% 46.1% 59.5% 53.0% 46.9% 53.3% 46.2% 38.5% 48.4% 58.6% 50.6% 50.7% 48.6% 46.2% 49.0% 41.5% 44.7% 50.3% 51.5% 45.1% 60.6% 54.1% 55.5% 51.5% 49.4% 55.6% 53.9% Total N 370 343 386 273 283 411 845 264 754 265 813 367 484 296 547 354 558 320 380 217 422 343 528 343 633 Family N 206 209 276 217 217 276 589 183 479 184 458 207 291 177 170 193 204 212 279 181 378 191 342 167 364 % 55.7% 60.9% 71.5% 79.5% 76.7% 67.2% 69.7% 69.3% 63.5% 69.4% 56.3% 56.4% 60.1% 59.8% 31.1% 54.5% 36.6% 66.3% 73.4% 83.4% 89.6% 55.7% 64.8% 48.7% 57.5% Non Family N % 164 44.3% 134 39.1% 110 28.5% 56 20.5% 66 23.3% 135 32.8% 256 30.3% 81 3.1% 275 36.5% 81 30.6% 355 43.7% 160 43.6% 193 39.9% 119 40.2% 377 68.9% 161 45.5% 354 63.4% 108 33.8% 101 26.6% 36 16.6% 44 10.4% 152 44.3% 186 35.2% 176 51.3% 269 42.5% Median Income $ $ 36,477 $ 21,827 $ 22,041 $ 19,181 $ 46,738 $ 24,655 $ 34,931 $ 30,139 $ 25,143 $ 48,906 $ 28,217 $ 37,917 $ 21,111 $ 21,713 $ 17,870 $ 27,596 $ 19,700 $ 34,554 $ 43,846 $ 14,712 $ 34,239 $ 26,346 $ 29,671 $ 23,073 $ 25,909 75704 - Map with Proposed Taco Bell location Latitude: 32.341825 Longitude: -95.365660 75704 - Map with Proposed Taco Bell location Property Price & Address: For Sale = $259,618 5537 State Highway 31 West, Smith County, Tyler, TX, 75704 Justification: We found that the best location to build a Taco Bell would be near any sub region except for 4 and 7 for the 75704 zip code area. This was only because the median incomes of both sub regions were slightly below $30,000. That was not a major factor for our location choice. Sub region 5 was definitely good based on the demographics and was similar to the information stated above (pages 1-3). This location was good for the price because all other locations were much more expensive. We found a location that was very close to an RV Park and mobile home community. Both of those would attract customers. The location is good for travelers heading into Tyler from Toll Road/ Loop 49 and those leaving Tyler going to Toll Road/Loop 49. Traffic Counts: A major concern we had to look for with this zip code was the traffic. It was basically out in the country. We found that the best place to put it would be were travelers could see it going on Highway 31. Many people travel on this road. It is predicted as the one of the highest traffic levels for any road in the Tyler area. There should not be any lack of possible customers based on the traffic flow. Community Competitors: (Four-mile radius) Community Demographics: (Two-mile radius) (Red = not ideal) (Green = ideal) Population ZipCode 75704 75704 75704 75704 Sub Total Region 4 5 6 7 White N % 3,225 1,880 69.1% 2,255 712 31.6% 1,086 623 57.4% 2,010 1,234 61.5% Black N 767 678 433 416 % 23.8% 30.1% 39.9% 20.7% Asian N 25 - % 0.8% 0.0% 0.0% 0.0% Hispanic N 525 856 29 329 % 16.3% 38.0% 2.7% 16.4% American Indian N % - 0.0% - 0.0% - 0.0% - 0.0% Multirace N 12 6 - % 0.4% 0.3% 0.0% 0.0% The People Residents Median Other Unemployment Below Poverty Residnet Age N % % % 12 0.4% 6.0% 18.9% 29.6 - 0.0% 5.8% 13.4% 31.4 - 0.0% 4.9% 11.4% 39.0 28 1.4% 7.1% 13.5% 39.2 Households Male Female Total 47.1% 46.1% 38.9% 45.4% N 52.9% 1,280 53.9% 721 61.1% 434 54.6% 898 Family N 885 527 285 566 % 69.1% 73.1% 65.7% 63.0% Non Family N % 395 30.9% 194 26.9% 149 34.4% 332 37.0% Median Income $ $ 28,802 $ 35,078 $ 36,927 $ 28,849 75708 - Map with Proposed Taco Bell location Latitude: 32.439305 Longitude: -95.138257 75708 - Map with Proposed Taco Bell location Property Price & Address: For Sale = $275,000 16242 US Highway 271, Smith County, Tyler, TX, 75708 Justification: We found that the best location to build a Taco Bell would be near any sub region except for 6 for the 75708 zip code area. This was only because the median income was below $30,000. We looked at all of the sub regions that were similar to all of the information stated above (pages 1-3) for what people actually eat fast food, specifically Taco Bell. There were no major concerns with the demographics. There were no competitors within the four-mile radius that would help attract more people to come near our Taco Bell. So, we wanted to build a Taco Bell that had heavily traffic areas. The Taco Bell is basically by itself with a Texas Best Smokehouse III right across the road that will help attract possible customers. The price of the property was fairly cheap, and was located in the 2nd sub region, which is right next to the 3rd & 4th sub regions. Traffic Counts: The main thing we had to worry about with this zip code was the traffic. It was basically out in the country. We found that the best place to put it would be as close as possible to Interstate 20. Interstate 20 had a great traffic flow, but we couldn’t place it right next to it due to no property for sale. So, we put it on Highway 271. The Taco Bell was very close to the exit on Interstate 20. Also, the traffic flow was predicted to have as much on Highway 271 as it would on Interstate 20. So, there is predicted to be plenty of possible customers based on the traffic flow. Community Competitors: (Four-mile radius) None Community Demographics: (Two-mile radius) (Red = not ideal) Population Sub ZipCode Total Region 75708 75708 75708 2 3 4 1,868 1,942 1,176 White N % 1,572 84.2% 1,143 58.9% 365 31.1% Black Asian N % N % 153 8.2% 0.0% 295 15.2% 52 2.7% 719 61.2% 0.0% The People American Residents Median Hispanic Multirace Other Unemployment Indian Below Poverty Residnet Age N % N % N % N % % % 128 6.9% 13 0.7% 0.0% 0.0% 3.5% 11.2% 36.2 417 21.5% 0.0% 34 1.8% 0.0% 2.4% 15.9% 45.2 90 7.7% 0.0% 0.0% 0.0% 6.3% 21.1% 29.9 Households Male Female Total 51.5% 48.5% 45.7% 54.3% 41.5% 58.5% N 721 851 456 Non Family N % N % 497 68.9% 224 31.1% 553 65.0% 298 35.0% 306 67.1% 150 32.9% Family Median Income $ $ 62,159 $ 42,045 $ 31,480