Service Location Strategy

Date: July 29, 2008
Time: 8 PM
Place: DeVry Lab

Within the past 5 years my friend opened a Quizno's franchise near 34th and 8th Ave in Manhattan.
Components of service location strategy were definitley taken into consideration.

1. Purchasing power: Customers who flocked the 34th St area buy subs that are priced a bit a higher that other Quizno locations in the US. They are willing and able to pay the premium price since it's common for things to be priced higher in Midtown Manhattan.

2. Service & Image Compat.: The target market for Quizno customers are young professionals. This matches the demographics of the area.

3. Competition in the Area: There are so many competitors in the area. Just about every major fast food chain is within 3 blocks. Yet this concentration of restaurants draws visitors.

4. Quality of the Competition: There is a wide range of quality of compeititors. I don't think this played a major role in choosing location.

5. Uniqueness of Location: Quizno has one advantage- it is the closest fast food shop to the movie theater and Hammerstein Ballroom. Other competitors are near unique attractions as well.

6. Physical qualities: Quizno's one issue is making itself visible. It doesn't have a marquee like other competitors and it's not on the corner, but mid block.

7. Operating policies of firm- the franchisor allows Quiznos to be located there. One concern is how close can another Quiznos franchise open. (Is there a territory?)

8. Quality of Management- there is a rich pool of management talent in NY.