POI data means data related to a point of interest. A point of interest is a place that is an attraction for visitors. It may be a hotel, a coffee shop, a bus station, a nightclub, a movie theatre, or even a gym. POI data includes geographical coordinates (latitudes and longitudes), street addresses, and business categories: (restaurants, hospitals, coffee shops, hotels, entertainment parks, movie theatres, shopping malls, etc). For instance, Google Maps (Places API) has over 90+ categories for businesses ranging from accounting firms to Zoos. These places are visited frequently and therefore generate foot traffic data (a subset of POI data).
POI data can be used to assess the business viability for a given place and business category. In this article, we are focused on understanding how POI data for coffee shops can be utilized smartly to find the perfect location for opening a coffee shop.
Why POI Data is Critical to Assess the Location for Opening a New Coffee Shop?
The success of coffee shops or cafe outlets depends on foot traffic. An area that has demographics like semi-urban or urban population, middle to upper-class income levels, modern lifestyle preferences, and well-connected roads and parking facilities is more conducive for opening a coffee shop. Generally, malls, shopping centers, business hubs, leisure places, areas near entertainment parks, popular tourist attractions, etc. have higher foot traffic and therefore are suitable areas for opening coffee shops.
POI Data Can help in evaluating key factors related to coffee shop location selection:
| Identifying High-Traffic Areas | Analyze Competitor Presence | Demographic Insights |
|---|---|---|
| POI data can help in identifying areas that have high foot traffic which is critical for a coffee shop. POI data will show areas like shopping centers, business centers, transportation hubs, entertainment parks, tourist attraction places, etc. | Demographic data is an important POI data set for coffee shop location selection. The data presents the local population’s age, income levels, lifestyle preferences, etc. The analysis can help in the final decision.. | Demographic data is an important POI data set for coffee shop location selection. The data presents the local population’s age, income levels, lifestyle preferences, etc. The analysis can help in the final decision.. |
| Accessibility and Convenience | Proximity to Complementary Businesses | Evaluate Local Amenities |
| Coffee shops that have proper parking facilities or lanes that are easy to reach by foot, car, or even public transport have a higher success rate. POI data presents these facilities on the map. | Coffee businesses don’t run in isolation. A nearby university, office, book store, library, hospital, etc, improves the chances of more customers coming to your coffee shop. Get POI data for other complimentary business locations too. | Coffee culture is primarily mixed with business culture too. People often visit cafes to discuss business also. Amenities like Wi-Fi hotspots are conducive for coffee shops. |
POI Data Types and Sources for Coffee Shop Location Analysis
POI data types that you can evaluate for analyzing the viability of a new coffee shop location:
● Foot Traffic Data: Pedestrian counts, Peak hours and patterns
● Demographic Data: Age distribution, Income levels, Occupation types
● Competitor Information: Locations of other coffee shops, Types of coffee shops (chains vs. independent)
● Complementary Businesses: Nearby Office buildings, Universities and schools, Shopping centers, Sports Clubs, Museums, Coworking spaces, etc.
● Transportation Hubs: Bus stops, Train stations, Parking facilities
● Local Amenities: Parks and recreational areas, Wi-Fi hotspots
Now, that you know which data types you can use for evaluating coffee shop locations, you must also know where to fetch this data from.
Easy-to-find POI data sources for coffee shop location analysis are listed below:
● Google Maps: Google Maps Platform, Places API, Geocoding API
● Social Media Platforms: Facebook Places, Instagram location data
● Local Business Directories: Yelp, Yellow Pages
● POI Data Providers: LocationsCloud (Get ready-made location-wise POI data)
How to Do POI Data Analysis for Coffee Shop Locations?
Once you get the POI data from any of (or a combination of ) the above-mentioned data sources, the next step is to analyze the POI data to uncover insights for coffee shop locations. Below are the key factors that you need to take care of for a perfect analysis.
Use Advanced POI Data Analytics Techniques
When using POI data to select coffee shop locations smart analytics derived from AI and machine learning modeling can give us better insights. As we are going to anticipate a location’s performance for a coffee shop, using predictive modeling is the best way to go. This can be done by analyzing the POI data such as foot traffic patterns, demographic data, proximity to complementary businesses, and competition (other coffee shops) with predictive models that can anticipate the success probability of a new coffee shop location.
Advanced time series and predictive models can further predict shifts in foot traffic, changes in who lives where, and new business areas popping up. These predictions help coffee shop chains plan where to open in the long run, so they can get ready for market changes and grab good spots in growing cities.
Geofencing and POI Definition
Properly defining and geofencing coffee shop POIs is crucial for accurate analysis. Geofencing creates precise polygons representing a coffee shop’s perimeter to capture relevant foot traffic data. This precision in boundary definition helps obtain accurate insights into customer behavior and location performance. A multi-level POI analysis provides a comprehensive view by defining POIs at different levels – from individual shops to broader retail corridors. This helps owners understand their location’s context and potential.
Integrating POI Data with Other Business Metrics
To make smart choices, coffee shop owners should mix POI data with other key business info. This means linking foot traffic numbers to actual sales at current shops, which helps fine-tune how they pick new spots. Also, looking at customer reviews and what people say on social media gives useful insights into how customers feel about specific locations. We would suggest sentiment analysis for this step. Operational cost consideration is another crucial aspect of this integration. By factoring in location-specific costs such as rent, utilities, and labor, coffee shop owners can assess the overall viability of potential sites more accurately.
Seasonal and Event-Based POI Data Analysis
Local events, seasons, and trends also impact Coffee shop sales. A place hosting multiple cultural events or festivities is more likely to see an influx of outsiders along with the locals. This means more sales. Also, seasonal data analysis is important. A place staying more than four months in bad weather can be a big no. People will stay away from such places.
Legal and Ethical Considerations in Using POI Data
When using POI data, addressing legal and ethical concerns is essential. This requires compliance with privacy regulations like GDPR and CCPA through anonymized data usage and proper consent collection. These practices ensure legal compliance while building stakeholder trust. Ethical location data usage requires avoiding discriminatory practices and maintaining transparency. This ensures positive community relationships while respecting local business ecosystems.
Wrapping Up
Having POI data is a strategic advantage for the decision-making process for coffee shop location selection. From pinpointing high-traffic areas with precision to understanding the competitor’s status, its multifaceted nature goes beyond mere geographical coordinates and demographic profiles. It powers decision-making with location intelligence that is accurate and actionable.
Moreover, the integration of POI data with advanced analytics, and AI-powered machine learning models opens up the way for advanced insights. Strategic use of POI data will be a key differentiator between thriving establishments and those that struggle to find their footing.
Whether you’re a startup looking for your first location or an established chain planning expansion, LocationsCloud provides ready-made, location-specific POI data for coffee shops that give you the edge over your competitors.
Want to brew up the perfect place for a coffee shop? Visit LocationsCloud today to explore our POI data sets.
