Metrics question

How would you decide where to establish a Pizza restaurant?

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What this question tests

Applying a location and market-sizing framework to a concrete site-selection decision.

How to approach it

  1. Clarify the business goal, maximizing foot traffic and sales versus minimizing rent cost, since these push toward different locations.
  2. Identify key demand signals, population density, foot traffic patterns, and proximity to complementary businesses like bars or offices.
  3. Identify supply signals, existing pizza competition density and average rent per square foot in candidate neighborhoods.
  4. Build a simple scoring framework, weighting foot traffic, competition density, and rent cost for each candidate location.
  5. Pick an illustrative example, e.g. a neighborhood with high foot traffic, moderate rent, and low direct pizza competition scores highest.
  6. Define success metrics post-launch, break-even timeline and sales per square foot versus the initial projection.

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