Let's face it, starting a new business can be frustrating. Moreover, if the business you want to establish has a lot of competitors, your job may be somewhat more difficult. This can be especially the case if you want to open your own cafe. But what you need to realize is that, you have made your mind to run your own cafe. Now, it's up to you to open your dream place and prepare your customers for the day with fresh coffee service, or to enable your customers enjoy a nice talk with their friends.
One of the key points in the success of your business is the choice of location.
At this point, it is up to us to find the best location that suits your needs and requirements.
In this blog post, we will examine the most suitable locations to open a cafe in Denver for demonstration purposes. Instead of examining the census block groups (CBGs) in detail, we will only examine them according to the income levels and investigate the density of other cafes in the vicinity. Finally, we will select regions where cafes are not densely located, and where people's incomes are relatively high. Thus, we will be one step closer to finding the best places to open a cafe in Denver. Let’s begin!
In the chart above, you can examine the average income values by each census block groups in Denver. You can check the average income value by hovering over the CBG you want on our interactive map. As it can be seen from the graph, citizens with a high average income are mainly located in the city center and south part of Denver. At the same time, we see that CBGs with similar average income values are clustered together, which is not surprising.
However, this map itself does not contain significant information about finding the best location to run a successful cafe. For this, we need to look out for the competitors in the vicinity, which are in this case, other cafes within the specified area.
For this purpose, we add all the nearby cafes to our map as pinpoints. In the graphic below, you can see the cafes in the area we examined with respect to the CBGs.
When we examine the distribution of cafes in the shaded area, we see that there are many cafes especially in the city center. Considering that there is a cafe in almost every corner today, this appearance is not surprising. On the other hand, when we consider the whole map, it seems possible to detect CBGs that do not have a low average income and do not have many cafes around! For this, let's examine our cafe density plot with respect to the CBGs.
If you have noticed, the graph you have seen below is colored differently from the two graphs above. While the graphs above are colored according to the average income of CBGs, the graph below is colored according to the density of cafes located close to CBGs.
When we divided the average income for each CBG by the number of nearby cafes, we got the graph below. Long story short, the higher the average income of a CBG and the fewer cafes there are in the vicinity, the darker green the CBG is.
To better understand our chart, remember the density of cafes around the city centre. If we examine the city center in the graphic below, you can see how red the area is, that is, unsuitable for opening a new cafe.
According to the statistical data we have created, green areas can be shown among the candidate regions suitable for opening a cafe! Then, let’s try to understand the results of the graph.
When we examine the graph, we see that there are CBGs in the peripheral region of the city center that are more likely to be candidate locations. We can conclude that there are areas suitable for opening a cafe, especially in West Denver!
In this blog post, we examined the best possible locations to open a cafe in Denver. Notice that we only used average income data in our analysis. For a more comprehensive study, various demographic characteristics such as population and mean age of CBGs should be used. If you want to choose the most suitable location for your business needs, feel free to contact us!