Market Sizing: "How many restaurants operate in Switzerland?"

Market sizing
Recent activity on Apr 26, 2019
2 Answers
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Anonymous A asked on Aug 06, 2018

How would the structure and reasonable estimations look like? What do you think?

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joe
Skilled
replied on Aug 06, 2018

The way I would do it is:

Start by total population then segment it into high income, medium income and low income. Following that assume a frequency of restaurant visits per income level. Then you need to look at the capacity per restaurant. I am guessing you could do that by estimating an average of maximum guests per hour that can fit then split the working hours into peak and off peak. Then assume a utilization % in eachc ase. Example:80% peak and 40% off peak. Now you have the total capacity per restaurant per day.

Divide demand by capacity you get the total number.

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Serhat
Expert
replied on Apr 26, 2019
BCG | Kellogg MBA |82% Success rate| 450+ case interview| 5+ year consulting | 30+ projects in ~10 countries

Joe's approach is pretty consistent. Maybe considering also tourist factor can be useful as they are less in the number but high in the eating at restaurant ratio.

Cheers

Serhat

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