Starbucks Market Analysis
in Riverside, CA

Market & Catchment Area Research Using Network Analysis, Applied GIS, UALR, April 23, 2020

Client: Starbucks

Project Scope: Conduct a GIS-based market analysis for Starbucks stores in Riverside, California to propose a potential location for closure.

Summary

For this analysis, I determined the service areas that were within a 3-minute drive time of each Starbucks location in Riverside, California. I also conducted an analysis of the Starbucks target market using Census data. 49% of yearly revenue comes from customers that are between the ages of 25-40, and 40% of yearly revenue comes from young adults between the ages of 18-24. The Starbucks locations in Riverside are generally located in areas where the average age of the Census block groups is within this target bracket. However, there are 2 locations that could be considered for potential closure where the average age of the block group is between the ages of 18-24 and not the ideal age group of 25-40. Those two stores are store #10666 and store #5370 which are located within a 1-minute drive of each other. It is my opinion that store #10666 should be closed. The service area of store #10666 has a significant amount of overlap with store #5370 and it also overlaps with the service area of store #10889. Although the population of the service area of store #10666 is greater than store #5370, since this location falls between two overlapping service areas, it is my opinion that this store could be closed without losing too much coverage in the Riverside area.

Maps

• Map 1 shows the Starbucks service areas within a 3-mile drive time as well as age demographics of the area.

• Map 2 shows only the service area demographics.

• Map 3 shows the average population of each service area.

• Map 4 shows the overlapping service areas of store #10666 and store #5370.

• Map 5 shows only the demographics of the service area for store #10666.

• Map 6 shows routes to the other Starbucks locations along with drive times.