- Retailers are increasingly relying on data-driven methodologies to identify profitable infill locations in saturated markets like Manhattan.
- Site selection now factors in digital ordering trends, catchment overlap, and cannibalization risks—particularly as delivery and takeout represent up to 50% of F&B sales.
- Firms like RTL use demographic, behavioral, and market-specific data to optimize top-line growth while mitigating risk at the bottom line.
A New Era In Retail Expansion
For brands like Chipotle, with 50+ Manhattan locations, the challenge isn’t entry—it’s optimizing within a saturated market. Kenneth Hochhauser, EVP at RTL, says every new site must be backed by rigorous data analysis to justify its value, reports GlobeSt. This is especially true in dense urban environments.
Beyond The Corner Store
“The days of grabbing the next available corner are over,” says Hochhauser. As delivery and digital ordering grow—now making up 10% to 50% of food and beverage sales—retailers face new challenges. They must now consider more than just foot traffic. Infill sites require deep analysis to avoid cannibalizing nearby stores while maximizing market coverage.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
How The Data Works
RTL starts by examining brand-specific customer demographics to pinpoint high-propensity areas. Tools like wealth indexes and American Household Survey data provide granular insights. In Manhattan, residents are 2.5 times more likely to order takeout than the national average. These data sets reveal how factors like proximity to schools, parks, or entertainment venues can subtly influence spending behavior.
The Real ROI Test
Ultimately, RTL’s process focuses first on top-line revenue potential, followed by a careful risk-reward analysis of the bottom line. As Hochhauser puts it, “Each site must add new value, not just shift existing revenue.” That distinction is vital in deciding whether the long-term investment will pay off in dense and competitive retail landscapes.
What’s Next
Expect the use of advanced analytics in site selection to continue rising as retailers refine their market strategies. With consumer behaviors evolving and real estate costs rising, precision in location choice has never been more critical.
