A Trade Area Analysis for a Hamilton Restaurant Based on Delivery Records

Abstract

This study examined the trade area of a Hamilton restaurant in an attempt to determine the relevance of theoretical models in predicting trade areas based on delivery records. Through the use of four trade area models, a comparative study was devise for 'Chicago Style Pizza' restaurant. The findings were based on delivery records. Since delivery records were used, the distance factor that is used in most models is eliminated. The models that were used were a population demand, Market Penetration Model, Intervening Opportunity Model and a Spatial Interaction Model. The use of a Geographical Information System was used to predict surface demands for the Market Penetration Model and the Spatial Interaction Model. It was determined that classical models of trade area analysis had only a slight relevance in delimitating the trade areas of the store in question when compared to the actual trade area of 'Chicago Style' based on delivery records.