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Identifying the right location to deploy a store is very important. While there are many components to profitability that your company controls (food costs, for example), there are other contributors to the bottom line that are dependent on the location.

Variables that contribute to success

All of the following location-specific characteristics can contribute to the overall margin performance of a location:

  • Number of people with access to the store
  • Proximity of other food options
  • Subsidy sponsored by the location 
  • Days of the week the location is open (ex: a workplace is typically open 5 days per week whereas a hospital benefits from sales 7 days a week)
  • Available delivery windows (ex: ability to deliver at night or very early morning versus in a defined time window)
  • Charging a subscription for the service you’re providing

The most important variable is sales volume, which means you need to be intentional with where you place yours stores. Here are a few minimum recommendations we’ve found helpful in determining what locations will be successful:

  • Location types:
    • Workplaces
    • Hospitals
    • Universities or community colleges
    • Large apartment buildings
  • Number of employees:
    • Suburban workplaces with less food options: require 100+ employees with no subsidy or 30+ employees with a subsidy of 40%+
    • Urban locations with more food options in close proximity: 200+ employees
  • Poor alternatives: Avoid working with locations where other food options are free or subsidized, and your food will not be.

Roles target in your sales efforts

Once you have your list of locations you wish to target, who should you reach out to? Depending on the company size and type, there are a few titles you’ll want to look for:

  • Facilities 
  • Office administrator
  • HR (wellness or benefits manager)
  • Executive or C-Suite

Here is a phone pitch and sales deck that may help in these conversations.

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