How did a leading coffee chain find its perfect location?

They opened many cafes in a white collar district, analyzed delivery orders after 3 to 4 weeks to find where target customers were, then closed cafes far from customers and opened new ones closer to them. They used delivery data as their testing tool.

What is Pop Mart's location testing strategy?

Pop Mart places toy machines in specific locations to test sales numbers first. Only when sales were good did they open a full store. They could open 10,000 outlets in one year but only opened 500 in 15 years because they test before they invest.

Stop Relying on Internet Traffic. Your Real Customers Are Within 2km

Stop Relying on Internet Traffic. Your Real Customers Are Within 2km

Published: 10th June 2026

Video

In this video, we answer:

What is the single most important factor for restaurant survival?
What does “business district” mean in F&B?
Why do repeat sales come from within a 1-2km radius?
Why is internet traffic unstable and expensive?
What type of customers drive 10km to a restaurant?
How much do delivery platforms charge?
What happens to a 55% gross margin after 30% delivery fees?
How did a leading coffee chain use delivery data to find its perfect location?
What harsh decision did the coffee chain make?
What is Pop Mart’s strategy for testing locations?
Why does Pop Mart open outlets slowly despite being able to open 10,000 per year?
What do successful brands agree on about location?
What is the final question every F&B owner should ask?

Key takeaways

The hook: Planning to open a restaurant? You need to hear this. The single most important factor that determines your restaurant’s survival is not your food. It is your business district.
The 2km rule: The customers who live or work within a 1 to 2 kilometer radius of your restaurant — that is, your business district. This is called localization. All your repeat sales will come from this radius.
The role of internet traffic: Let me be clear. We are not saying that internet traffic is not important. It is a key supplement to increase your business visibility. But it cannot be the key factor that your entire business relies on.
Why internet traffic alone fails: Internet traffic is unstable and can become obsolete. Customers who drive 10 kilometers to your restaurant usually need big discounts. Bargain hunters have no loyalty. The cost of using the internet traffic is very high, often adding up to more than your rent. Use it as a supplement. But build your foundation on location.
Food delivery is not the answer: A good location also means you do not need to rely on food delivery. Keep delivery sales below 30% of your total. Some platforms charge up to 30% of your sale. If your gross margin is 55%, after deducting 30%, there is nothing left to cover your rent and staff.
Case study – Leading coffee chain: A leading coffee chain opened many cafes in a white-collar district. After 3 to 4 weeks, they analyzed delivery orders to find where their target customers actually were. Then they made a harsh decision. They closed cafes far from customers and opened new ones closer to them. They used delivery data as their testing tool.
The Pop Mart strategy: Pop Mart could open 10,000 outlets in one year. But they only opened 500 in 15 years. Why? They placed toy machines at test locations first. Only when sales were good did they open a full store. Test before you invest.
The final message: For F&B businesses, trial and error is expensive. That is why you must choose a business district that matches your business. Want to know if your district suits your food type? Contact us. Stay smart. Stay local.

Full transcript

Voice specification: Male, deep, confident, American accent. Speak clearly, not rushed. Pause briefly at each [PAUSE].

[0:00-0:08] — Hook

Visual: Map showing a 2km radius around a restaurant with pins (customers). Text: “Your survival depends on THIS.”

Voice:
“Planning to open a restaurant? You need to hear this. The single most important factor that determines your restaurant’s survival is not your food. It is your business district. [PAUSE]”

[0:08-0:18] — The 2km Rule

Visual: Show a restaurant icon with a 1-2km radius circle. Inside the circle, show houses and office buildings.

Voice:
“What do I mean? The customers who live or work within a 1 to 2 kilometer radius of your restaurant — that is your business district. This is called localization. All your repeat sales will come from this radius. [PAUSE]”

[0:18-0:30] — The Role of Internet Traffic

Visual: Show a phone with social media icons, then a balanced scale – internet traffic on one side, location on the other.

Voice:
“Now, let me be clear. We are not saying internet traffic is not important. It is a key supplement to increase your business visibility. But here is the problem. It cannot be the key factor that your entire business relies on. [PAUSE]”

[0:30-0:42] — Why Internet Traffic Alone Fails

Visual: Show a car driving 10km, then a discount coupon, then a customer walking away. Text: “Internet traffic = Expensive & Unstable.”

Voice:
“Why? Because internet traffic is unstable and can become obsolete. Customers who drive 10 kilometers to your restaurant usually need big discounts. And bargain hunters have no loyalty. The cost of using internet traffic is very high — often adding up to more than your rent. Use it as a supplement. But build your foundation on location. [PAUSE]”

[0:42-0:55] — Food Delivery is Not the Answer

Visual: Show a delivery platform logo with 30% fee. Then show a pie chart: 55% gross margin minus 30% delivery fee.

Voice:
“A good location also means you do not need to rely on food delivery. Keep delivery sales below 30% of your total. Why? Some platforms charge up to 30% of your sale. If your gross margin is 55%, after deducting 30%, there is nothing left to cover your rent and staff. [PAUSE]”

[0:55-1:08] — Case Study: Leading Coffee Chain

Visual: Show a coffee shop map with multiple pins. Then show one pin closing and moving closer to customer clusters.

Voice:
“Let me share a real example. A leading coffee chain opened many cafes in a white collar district. After 3 to 4 weeks, they analyzed delivery orders to find where their target customers actually were. Then they made a harsh decision. They closed cafes far from customers and opened new ones closer to them. They used delivery data as their testing tool. [PAUSE]”

[1:08-1:18] — The Pop Mart Strategy

Visual: Show a toy vending machine, then a long queue outside a store. Text: “Test before you invest.”

Voice:
“This is similar to Pop Mart in China. They could open 10,000 outlets in one year. But they only opened 500 in 15 years. Why? They placed toy machines to test locations first. Only when sales were good did they open a full store. Test before you invest. [PAUSE]”

[1:18-1:22] — Closing

Visual: Host looks directly at camera. Text on screen: “Match your business district to your food type.”

Voice:
“For F&B businesses, trial and error is expensive. That is why you must choose a business district that matches your business. Want to know if your district suits your food type? Contact us. Stay smart. Stay local.”

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