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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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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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.



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