The combination of demographic and geographic information can be applied to identifying locations for restaurant units. By analyzing restaurant-density patterns, an operator can determine the number and types of restaurants in a market area. Next, the operator can acquire computerized street-level maps showing business generators and traffic patterns for existing restaurants. Finally, the operator can identify potential locations for new restaurants. As an example, the analysis of a neighborhood in Boston shows a location that would likely support a new casual-theme restaurant.
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Muller et al. (1994) studied this question.
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