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Consider your favorite fast food restaurant chain (IN-N-OUT) . What components (facilities, suppliers, stores, warehouses, etc.) comprise it's network? When this restaurant chain considers adding

Consider your favorite fast food restaurant chain (IN-N-OUT). What components (facilities, suppliers, stores, warehouses, etc.) comprise it's network? When this restaurant chain considers adding a new store, how should it go about selecting the best location for this facility? What factors are important in the decision?

ANSWER SHOULD BE SIMILAR TO THE EXAMPLE BELOW:

\Part 1

  • Warehouses: Chick-fil-A's main warehouses are in Douglasville, GA and Atlanta, GA. Chick-fil-A also has a distribution center in Miami, FL.
  • Restaurants: Chick-fil-A restaurants are typically found in suburban areas and are open from 6:30am to 10:00pm. Chick-fil-A offers a drive-thru service and also has a "First 100" event in which the first 100 customers in line receive a free meal each year.
  • Suppliers: Chick-fil-A's main suppliers are dairy and chicken farmers. Chick-fil-A works with about 2,000 suppliers and contracts with about 500 of them.
  • Stores: Chick-fil-A stores are typically open from 6:30am to 10:00pm. Chick-fil-A offers a drive-thru service and also has a "First 100" event in which the first 100 customers in line receive a free meal each year.
  • Warehouses: Chick-fil-A's main warehouses are in Douglasville, GA and Atlanta, GA. Chick-fil-A also has a distribution center in Miami, FL.

Part 2

  • The demographics of an area can give a business a good idea of what type of customer it will attract. Chick-fil-A would want to look for an area with a population that is dense enough to support a new store, but also has a high income level to ensure that the store is profitable. The competition is also important to consider. Chick-fil-A would want to make sure that there is not already a Chick-fil-A in the area, as that would cannibalize sales from the new store. Finally, the potential customer base is important to look at. Chick-fil-A would want to find an area with a large population that is within a reasonable driving distance for customers

Part 3

  • Location is important for a Chick-fil-A for a few reasons. First, Chick-fil-A is a quick-service restaurant, so it needs a lot of traffic and visibility to be successful. Second, the restaurant is closed on Sundays, so it needs to be in a location where people are likely to be out and about on other days of the week. Finally, Chick-fil-A is a family-friendly restaurant, so it wants to be in a location with plenty of nearby amenities like schools, churches, and shopping

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