Data_Storytelling_Project

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e-mail: dannygarcia193@gmail.com

Date completed: June, 2020

Project Name:

Market Research Of Establishments in LA: Restaurants Offer the Best Opportunity to Succeed

Project description:

Hello this is my submission for the Data  Storytelling Project from Practicum by Yandex's Data Analyst program. You can find more about the Data Analyst program by clicking here. Their description is the following:

You’ve decided to open a small robot-run cafe in Los Angeles. The project is promising but expensive, so you and your partners decide to try to attract investors. They’re interested in the current market conditions—will you be able to maintain your success when the novelty of robot waiters wears off?

You’re an analytics guru, so your partners have asked you to prepare some market research. You have open-source data on restaurants in LA.

Summary of LA Establishment Market Research:

LA Establishments:

• Total restaurant count: 9,651
• 62% are non-chains and 38% are chains
• Chain establishments - number of seats form two categories:
  1. Few Seats (< 50) and Many seats (>61)

Café:

• Roughly 4.5% of the market share
• More likely to be a chain (61.1%)
  • According to market research, this trend is set to continue increasing
• Chain establishments
  • lowest share of many seats (>61) relative to other establishments type
    • characterizes them as small venues
  • Average number of seats = 25

Restaurant:

• Large share of establishments in LA: Restaurants make up roughly 75% of the establishments in LA -- make it relatively easier to compete and thrive given the service it will provide
• More likely to be non-chains (68.4%)
• Chains:
  1. 1/5 or 20% have many seats (> 60)
  2. Have on average 48 seats
  3. 68% of streets contain 1 restaurant whilst 32% contain more than 1; top 10 streets contain between 110 and 230 restaurants.
• Streets with more than 10 restaurants
  1. Have a median of 32 seats
  2. Distribution of seats can be split into two groups and does not differ amongst chains and non-chain restaurant establishments.

Conclusion

• Restaurants more likely to be non-chains (68.4%)

• Large share of establishments in LA: Restaurants make up roughly 75% of the establishments in LA -- make it relatively easier to compete and thrive given the service it will provide

When thinking about establishing in LA, given: (1) chosen establishment (small Cafe), (2) the novelty of the service provided (robot waiters), (3) the current market conditions, (4) cost of the project, and  (5) long-term goal to maintain a successful establishment,  the following conclusion is given:

The company should pivot towards establishing a restaurant as there is less big players in that market relative to Cafes; small cafes are being outcompeted by Cafe chains. In addition, the company should consider starting off as a non-chain with 48 and (avg. for a restaurant chain) and depending on its strategy, establish itself in a street with many restaurants and/or one restaurant. It can then aggressively grow and establish a chain thereafter given the novelty of service provided.

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