Growth | January 2011 | By Daniel P. Smith

The Growth 40

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Yet for some brands, existing competition, particularly in smaller markets, is an advantage rather than a drawback.

Lyerly says CKE’s growth is not swayed by the presence of competitor brands. In fact, the CKE team will look at the existing presence of quick serves to examine the area’s potential receptiveness to their products.

“The performance of our competitors in a given area can often reveal how we might perform in that area,” Lyerly says, acknowledging that the same numbers can also show if a market is oversaturated.

Ultimately, Beery says, development teams should use the Growth 40 to drive on-the-ground site evaluation, where brands can examine visibility, accessibility, and parking, all elements that can have a significant impact on sales regardless of any Growth Index score or competitive landscape.

“The data provides an early mechanism for companies to compare markets with a level of science and apples-to-apples comparison that can … open the door to the future and where more rigorous analytics might be placed,” Beery says. Although further exploration is necessary, he says, “these places are poised for quick-service growth and show some real positives.”

Growth - Pitney Bowes Business Insight creates its Growth Index by factoring in unemployment, retail sales change, disposable income change, and house price change. In the map above, the markets marked in red denote those with high growth potential. Blue marks areas with below-median growth.

Competition Levels - Pitney Bowes Business Insight's Competition Index reflects the 2009 population per quick-service unit for chains with at least 25 units. While growth may be high in some markets, high competition rates might negate their potential as a hot market. In the map above, the markets marked in red have a low competitive environment for quick serves.

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