Strategy question

Start a new coffee shop in Toronto, Canada.

Practice this question out loud. An AI interviewer asks it, follows up like a real interviewer would, and scores your answer. Type or speak.

What this question tests

Tests general business strategy reasoning applied outside tech: market sizing, competitive positioning, and a coherent go to market plan.

Define the target customer and neighborhood, for example young professionals in a specific Toronto district with high foot traffic.
Assess the competitive landscape: existing chains like Tim Hortons and Starbucks versus independent cafes.
Identify a differentiation angle, such as specialty single origin coffee or a community workspace focus, rather than competing head on.
Estimate rough unit economics: rent, staffing, and average ticket size needed to break even.
Propose a launch plan: soft opening, local partnerships, and a loyalty program to build repeat visits.
State the assumptions behind your numbers clearly, since exact figures are not something you would know precisely.

Picks a specific differentiation, for example a specialty coffee and workspace hybrid targeting remote workers in a district like King West, rather than a generic cafe.
Gives illustrative unit economics, for example an assumed average ticket of 6 dollars and a stated daily customer count needed to cover rent and staffing.
Proposes a go to market plan grounded in local tactics, partnerships with nearby offices and a referral loyalty program, not broad advertising.
Flags the key risk, high competition density from established chains, and proposes location selection as the main mitigation.

Skipping rough unit economics entirely and treating this as a pure branding exercise.
Ignoring the intense existing competition from Tim Hortons and Starbucks in most Toronto neighborhoods.

Chapters of the AI PM course that teach what this question tests.