Monthly Archives: May 2012

Fast Food – What’s Most The Most Likely Visited Restaurant in a Zip Code?

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Updated 5/31/2012

As a follow-up to the blog Fast Food – Who Eat’s Where? many were curious as to the most popular fast food restaurant by zip code.  Although restaurants like McDonalds are very popular nationwide, they aren’t necessarily the most popular on a local level.  In fact, there are only a handful of zip codes in the United States where McDonalds is the most popular.  Rather, many local or regional chains are the more likely choice with consumers.

Taco Bell, Subway, Wendy’s, and KFC – though popular nationwide like McDonald’s are similarly less likely to be the restaurant of choice on a local level.  In fact, none of these chains are most likely to be visited at least once in the last six months in more than 10 zip codes, so they were not included in this map.  Rather, chains such as Hardees are more likely to be visited on a local level, as displayed above.  Captain D’s is very popular in the Midwest towards the east.  Panera is very popular on the eastern seaboard and Carl’s Jr is popular in California.

Part of what is interesting about this, is some chains are very popular in areas where they don’t have many restaurants – or maybe even any restaurants.  This can mean a couple of things.  First, people travel to other areas to frequent them – or always make sure they visit the restaurant when they are in nearby cities that have locations.  One example is Captain D’s in the Omaha, NE Core-Based Statistical Area (CBSA).  There are no Captain D’s in the CBSA, but there are in nearby Kansas City, MO and other towns relatively close by.  It may also mean that people who live in one area and are part of the same tapestry segment as another area are more likely to visit a given restaurant, if available.  Therefore, although the restaurant isn’t in their area – they are likely to visit it if they are in an area where it does exist.

Captain D’s Index by Zip Code in Omaha CBSA

As shown in the map above, there are many zip codes on the outer part of the Omaha CBSA where consumers are big fans of Captain D’s.  These areas have a minimum index of 150 for Captain D’s.  This means are 1.5 times more likely (or greater) to have visited a Captain D’s in the last 6 months than the average American.  This information informs the owners of Captain D’s that this may be an area of opportunity to expand their restaurant chain.  Further analysis of locations is required to determine an optimal location, but this analysis can give a first pass to find new potential locations.

More information about Esri’s data can be found at www.esri.com/data or to learn more about Esri in general, go to www.esri.com.

Fast Food – Who Eats Where?

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Fast food is a core part of the US culture. It’s easy. It’s cheap. It’s everywhere. McDonalds is the main restaurant of choice with over 18,000 locations in the US alone. Over 42% of Americans visited McDonalds at least once in the last 6 months. There is little diversity in the types of people that go to McDonalds as it appeals to all types. Other fast food chains, however, are not quite as popular – and target different types of people and locations. How do these vary? What type of consumer visits each of these chains? Does geography matter?

While there are a significant amount of fast food chains, this article will focus on just a few of them – the ones that are most visited in the last 6 months (after McDonalds of course). They are: Burger King, Taco Bell, Subway, Wendy’s, and KFC.

Burger King

With over 12,500 stores worldwide, Burger King is one of the most popular hamburger franchises in the world. Over half of their franchises are located in the US. The majority of these are located in the eastern part of the United States – but franchises are all over. Over 27% of the US population has visited a Burger King in the last 6 months. No one area of the country seems to dominate the visits, though consumers living in the mid-west and east tend to frequent the restaurant as a whole more than those in the west.

One method to classify consumers is through tapestry segmentation. Esri, a geographic information systems company which also does data analysis, developed a tapestry segmentation that classifies US residential neighborhoods into 65 unique market segments based on socioeconomic and demographic characteristics.

The tapestry segmentation groups that frequent Burger King the most are Metro City Edge and Dorms to Diplomas. 100% of the census block groups where these segments are dominant have an index of 125 or higher for likely visiting Burger King at least once in the last 6 months. This means that a consumer in these groups is at least 1.25 times more likely than the average American to have visited Burger King at least once in the last 6 months. These are the avid Burger King consumers. Who are they?

Metro City Edge residents live in older suburban neighborhoods of large metropolitan cities, primarily in the Midwest and South. Their median income is $29,269. About 72% of the residents are black. Dorms to Diplomas residents are college students. 90% of these consumers rent. Most of these communities are in urban locations or part of a major campus in a n urban cluster.

Taco Bell

Mexican food is a very popular fast food choice – and Taco Bell is the most popular Mexican fast food chain in the US. The company has over 5,800 restaurants throughout the country which almost 25% of the US population visited in the last 6 months.

The zip code with the highest index for visiting Taco Bell in the last 6 months is 06269, which is Storrs Mansfield, CT.  This is the zip code for the University of Connecticut.  In fact the top 5 zip codes all have colleges located there.  The top 5 zip codes are:

  • 06269 – Storrs Mansfield, CT (University of Connecticut)
  • 13244 – Syracuse, NY (Syracuse University)
  • 27411 – Greensboro, NC (Bennett College)
  • 27710 – Durham, NC (Duke University)
  • 29424 – Charleston, SC (College of Charleston)

Not surprisingly, the most avid visitors of Taco Bell are residents of the tapestry group Dorms to Diplomas.  As mentioned above, these are college students.  All of the census blocks where this segment is dominant have an index for visiting Taco Bell at least once in the last six months is 150 or higher meaning they are 1.5 times more likely than the average American to go to Taco Bell.

Other tapestry segments with residents that are frequent Taco Bell customers are Up and Coming Families and Aspiring Young Families.  Census block groups where these segments are dominant have an index of 125 or higher for visiting Taco Bell at least once in the last 6 months.

Subway

Known for submarine sandwiches, Subway is the largest sandwich restaurant in the United States.  It has approximately 20,000 locations in the US and over 35,000 worldwide.  This is even more than McDonald’s 33,000 worldwide locations.

With Subway being everywhere, this means their customers are everywhere too.  There are 36 zip codes that are tied for the highest index for visiting Subway at least once in the past 6 months.  They have an index of 158.  This means that someone in those zip codes is 1.58 times more likely than the average American to have visited Subway in the past 6 months.  To put this in perspective, about 24.1% of Americans have visited Subway in the past 6 months.

Like Taco Bell, the tapestry segment that visits Subway the most is Dorms to Diplomas.  Made up of primarily college students, this group is looking for quick, inexpensive food on the go.  All of the census block groups where Dorms to Diplomas is the dominant tapestry segment have an index of 125 or higher for having visited Subway at least once in the past 6 months.

Wendy’s

Known for its old-fashioned hamburgers, Wendy’s is the third largest hamburger chain the world with over 6,650 locations.  Its popularity is increasing.  With fewer locations than Burger King, it surpassed Burger King’s sales in 2011.  About 23.6% of Americans visited a Wendy’s in the last six months.

Wendy’s seems to be most popular in the south and east but also in some parts of the west.  The chain is less popular in the Midwest – at least people don’t frequent the restaurant too often there.

Residents from two tapestry groups frequent Wendy’s the most: Family Foundations and Great Expectations.  100% of the census block groups where these two segments are dominant have an index of 125 or higher for visiting Wendy’s at least once in the last 6 months.  This means that residents in these groups are 1.25 times more likely to have visited Wendy’s.

Family Foundations neighborhoods are small urban communities are located in large metro­politan areas, primarily in the South and Midwest. They have a median household income is $38,460.  Young singles who live alone and married-couple families dominate the Great Expectations neighborhoods.  Their median household income is $35,406.

Kentucky Fried Chicken

Founded by Colonel Sanders in 1952, KFC is the most popular fast food chicken restaurant in the United States.  The company has over 15,000 stores in 105 countries worldwide.  In the US, almost 21% of the population visited KFC in the last 6 months.  The restaurant is particularly popular in the south.

Several tapestry segments are composed of residents who frequent KFC.  They are Family Foundations, Heartland Communities, Southern Satellites, City Strivers, Urban Rows, Rural Bypasses, and Rooted Rural.  100% of the census block groups where each of these are dominant have an index of 125 or higher for visiting KFC at least once in the last 6 months.  The majority of these tapestry segments are part of the Urbanization segment Rural II.  Urbanization summary groups share a locale, from the urban canyons of the largest cities to the rural lanes of villages or farms.

Over 80% of the Rural II neighborhoods have an index of 125 or higher for KFC.  Most of this population lives in rural farm areas; the rest live in the country or in small villages.

Each of these restaurants is popular to a different type of segment of the population.  Consumers have preferences based on food selection, taste, price, convenience, and many other factors.  It is important to understand which types of consumers frequent a restaurant to best target new customers and to understand the best opportunity for expansion.

More information about Esri’s data can be found at www.esri.com/data or to learn more about Esri in general, go to www.esri.com.

Atlanta – How Does it Compare to “Typical” America?

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Home to companies like The Coca-Cola company, Turner Broadcasting, The Home Depot, IPS, and Delta Airlines, the city is a major business city for both the US and the world.   But what are people like in Atlanta?  How do they compare to the “average” American?  How does each neighborhood differ throughout the area?

According to the 2010 Census, there are 5,611,180 people living in the Atlanta, GA Core Based Statistical Area (CBSA). What do we know about the people living there?  How do they vary?

As a whole, the Atlanta CBSA population is 49.4% male and 50.6% female.  57.3% of the population identifies themselves as White only.  31.4% of the population identifies themselves as Black (compared with 12.4% of the US population).  10.6% of the population identifies themselves as Hispanic. The median income in 2010 was  $68,106, which is over 25% higher than the US median income of $54,442.

People in Atlanta are “average” Americans in some ways, but also index high or low in many parts of the city depending on the demographics.  A high index means they spend more than the average America  on a product and service or a higher percentage of households participate in an activity the average US household. Here are some key statistics for selected variables for the overall Atlanta CBSA:

Activity Index Average Spend per HH per Year
Watch baseball on TV

103

N/A
Watch American Idol

105

N/A
Own a DVR

118

N/A
Coffee at Home

104

$67.30
Health Insurance

102

$1,916.56

All neighborhoods in Atlanta are not the same.  Just like the rest of the US, there is diversity in the area.  Retailers, marketers, distributors, and others who do business with direct consumers need to know where their customers live – or where the opportunity may lie.  Understanding what activities consumers are engaging in or what they are purchasing is critical to knowing where customers and opportunities lie.

Baseball is one of the key all-American sports.  Home to the Atlanta Braves, baseball is as popular in Atlanta as anywhere.   Much of Atlanta is relatively average when it comes to watching baseball on TV.  There are a few areas on the outskirts of the CBSA and right in the middle of the CBSA that are below average.

Baseball TV Viewing Index by Zip Code

The zip code that indexes the highest when it comes to watching baseball is 30290, which is Tyrone, GA. Its index is 127 meaning that someone in a household in this zip code is 1.27 times more likely than the average American household to watch baseball.  The dominant tapestry segment of this zip code is Green Acres.  Seventy-one percent of the households in Green Acres neighborhoods are married couples with and without children. Many families are blue-collar Baby Boomers, many with children aged 6–17 years.  This segment is not ethnically diverse; 92 percent of the residents are white. More about tapestry segments and segmentation can be found at www.esri.com/tapestry.

American Idol is one of the most popular television shows today with a wide range in its viewing audience from age to demographics.  While it isn’t as popular as it once was, millions are still tuning in to watch and vote every week.  On May 3, 2012, 15.05 million households tuned in to view the show, according to Nielsen (prior seasons have had 20-30 million viewers per show).  That’s more than 13% of all households in the US.  Residents of Atlanta are typically American when it comes to American Idol with an index of 105.

American Idol Viewing Index by Zip Code

There is little variation for American Idol viewing among neighborhoods in Atlanta – most fall within the “average” index range of 75-125.  The zip codes with the highest indices are 30336 and 30332 – both with an index of 131.  These zip codes have different dominant tapestry groups.  They are Sophisticated Squires and Family Foundations, respectively.  It isn’t surprising that this varies as the American Idol viewer is very diverse.  The zip code with the lowest index for watching American Idol in the Atlanta CBSA was 30326 with an index of 59.  This means that a household in that zip code is 40% less likely to watch American Idol as the average American household.  The dominant tapestry segment in that neighborhood is Metro Renters.  Residents of this segment are young, educated singles, who are just beginning their professional careers in some of the largest US cities.

DVRs have changed the way many consumers watch television.  Enabling consumers to shift their television viewing from appointment viewing to on-demand has greatly affected how media companies market and distribute their content.  Many think that everyone has a DVR since it’s so prevalent it places like Los Angeles and New York where many in the media market live.  It’s not quite true – it’s somewhere around 50% of US households.  While this isn’t something to ignore, knowing that half the country still watches much of their TV live is important and can affect what type of content is developed and how it is distributed.  How does Atlanta compare to the rest of the nation?

Overall, Atlanta has a higher adoption of DVRs than the average American.  Its index is 118.   Not all areas of Atlanta are the same though.

DVR Ownership Index by Zip Code

While overall the city falls in the average range for DVR ownership, it is on the higher end of the average scale as it has an index of 118 meaning residents of the Atlanta CBSA are 1.18 times more likely to have a DVR than the average American household.  The city, itself, though, is quite diverse in DVR ownership.  There are several zip codes with indices of above 150 for DVR ownership meaning they are 1.5 times more likely to have a DVR than the average American household.  The zip code with the highest index of 196 is 30097.  The three zip codes with the next highest zip codes are 30024, 30022, and 30005.  All 4 of these zip codes have Boomburbs as their dominant tapestry segment.  Residents of this segment busy, affluent young families with the highest concentrations of young families with children. There is little ethnic diversity in the population; most of the residents are white.

With an index of 47, the zip code 30734 has the lowest index in the Atlanta CBSA.  Households in this zip code are less than half as likely to have a DVR than the average American household.  The dominant tapestry segment is Southern Satellites.

Knowing what consumers spend their money on and how much is key to understanding their preferences and what they may or may not buy in the future.  This information can help retailers, marketers, and distributors decide on what products to offer and where to offer them.

Coffee is a key part of many people’s day – especially in the morning.  While many go to a coffeehouse to consume their favorite caffeinated beverage – or they get it at work, many also brew it at home and consume it there or on their way to work.  The average American household spends about $64.20 on coffee each year.  The average household in the Atlanta CBSA spends just a bit more than that – $67.30. Atlanta, overall, is just average in terms of spending on coffee – but neighborhoods differ.

Average HH Annual Coffee Spend for Home Consumption by Zip Code

There are a few zip codes in the Atlanta CBSA where the average household spends over $100 per year on coffee.  Interestingly, there are multiple tapestry groups that are dominant for each of these zip codes: Top Rung, Social Security Set, Boomburbs, Suburban Splendor, and Metro Renters.  The average household in zip code 30313 spends just $30.96 per year on coffee, which is the lowest in the Atlanta CBSA.

Health insurance is a concern of most Americans and has been on the agenda of politicians for many years.  It is one of the foremost topics for the 2012 presidential election.  The average American household pays about $1,865 annually for it.  Many factors go into how much an individual or family pays including family size, age, health condition, and much more.  It can also vary based on where you live – from the state, city, and even neighborhood.  The average household in Atlanta pays $1,916.56 which is just above the amount of the average American household.

Average HH Health Insurance Spend by Zip Code

There are many reasons that are hard to pinpoint as to why one area has higher health insurance costs than other.  The formulas are very complex.  While much of the city falls within the “average” of the American household, there are a few areas that are either above or below average.  There are three zip codes where the average household spends over $3,000 per month.  Each of these has median incomes over $120,000.  Households in zip code 30327 on average spend the most – $3,163.01.  The dominant tapestry group for this zip code is Top Rung.  Information about health insurance costs can help health industry professionals determine what services or clinics may be needed in an area.

What does this all mean in terms of Atlanta? 

In the criteria analyzed here, its indices are just slightly higher than the typical American household – but it’s really pretty much average as a whole.  There are some differences throughout the city.  This is due to the varying demographics in the city showing that there is a spectrum of consumers throughout.  Companies wanting to target the Atlanta area should fully understand who their market is then use segmentation to find the neighborhoods that match their consumers.

This blog is part of a series about various local markets around the country.

More information about Esri’s data can be found at www.esri.com/data  or to learn more about Esri in general, go to www.esri.com.

Boston – How Does it Compare to “Typical” America?

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Settled in 1630 and incorporated in 1822, Boston is one of the oldest cities in the US. It is home to many major league sports teams including the Boston Red Sox, Boston Celtics, Boston Bruins and the New England Patriots. It is also home to more than 100 colleges and universities, which bring in more than 250,000 students from around the world.

What are people like in Boston? How do they compare to the “average” American? How does each neighborhood differ?

According to the 2010 Census, there are 4,391,344 people living in the Boston, MA Core Based Statistical Area (CBSA). What do we know about them? How do they vary?

As a whole, the Boston CBSA population is 48.5% male and 51.5% female. 79% of the population identifies themselves as White only. 8.9% of the population identifies themselves as Hispanic. The median income in 2010 was $74,931, which is over 35% higher than the US median income of $54,442.

People in Boston are “average” Americans in some ways, but also index high in many parts of the city. This means they spend more than average on many products and services and a higher percentage of consumers participate in an activity the average US household.

Here are some key statistics for selected variables for the overall Boston CBSA:

Activity Index Average Spend per HH per Year
Watch baseball

114

N/A
Watch American Idol

100

N/A
Own a DVR

117

N/A
Coffee at Home

133

$85.58
Health Insurance

124

$2,315.78

All neighborhoods in Boston are not the same. Just like the rest of the US, there is diversity in the area. Retailers, marketers, distributors, and others who do business with direct consumers need to know where their customers live – or where the opportunity may lie. Understanding what activities consumers are engaging in or what they are purchasing is critical to knowing where customers and opportunities lie.

Baseball is one of the key all-American sports. As noted above, Boston is home to the Boston Red Sox, which plays out of America’s oldest ballpark – Fenway Park. The question is – with this rich history in baseball – does that then translate to people watching baseball on TV?

Baseball TV Viewing Index by Zip Code

 

Much of Boston is relatively average when it comes to watching baseball on TV, though there are many areas that are above average.  The zip code that indexes the highest when it comes to watching baseball is 01731.  This zip code belongs to Hanscom AFB.  Its index is 138 meaning that someone in a household in this zip code is 1.38 times more likely than the average American household to watch baseball.  The dominant tapestry segment of this zip code is Military Proximity.  Residents of Military Proximity are young, married, and beginning parenthood.  More than three-fourths of the labor force in this segment are on active duty or have civilian jobs on military bases.  More about tapestry segments and segmentation can be found at www.esri.com/tapestry.

American Idol is one of the most popular television shows with a wide range in its viewing audience from age to demographics.  While it isn’t as popular as it once was, millions are still tuning in to watch and vote every week.  On April 25, 2012, 15.66 million households tuned in to view the show, according to Nielsen (prior seasons have had 20-30 million viewers per show).  That’s more than 13% of all households in the US.  Residents of Boston are typically American when it comes to American Idol with an index of 100.

American Idol Viewing Index by Zip Code

 

Interestingly, there is little variation for American Idol viewing among neighborhoods in Boston. Most neighborhoods fall within the “average” index range of 75-125. The zip code with the highest index is 01731 just like in baseball viewing. The zip code with the lowest index for watching American Idol was 02110 with an index of 53. This means that a resident in that zip code is ½ as likely to watch American Idol as the average American. The dominant tapestry segment in that neighborhood is Laptops and Lattes. This segment is very affluent and young. They enjoy life in the big city.

DVRs have changed the way many consumers watch television. Enabling consumers to shift their television viewing from appointment viewing to on-demand has greatly affected how media companies market and distribute their product. I live in Los Angeles where media is one of the main industries and almost everyone is connected to the “industry,” so there is a skew in the adoption of DVRs – many think that everyone has one. It’s not quite true – it’s somewhere around 50% of US households. While this isn’t something to ignore, knowing that half the country still watches much of their TV live is important and can affect what type of content is developed and how it is distributed. How does Boston stack up?

Overall, Boston has a higher adoption of DVRs than the average American. Its index is 117. Not all areas of Boston are the same though.

DVR Ownership Index by Zip Code

While overall the city is average in terms of DVR ownership, there are distinct differences in areas around the city. The zip codes with an index of 150 (considered well above average as they are 1.5 times more likely than the average American household to have a DVR) or above all have high median incomes – over $80,000. All of these zip codes are located in or very close to the actual city of Boston versus areas around the outskirts of the CBSA. The zip codes with the highest index in the CBSA are 02030 and 01741. Their indices are 195. Both zip codes have a dominant tapestry group of Top Rung. With an index of 56, the zip code 01841 has the lowest index in the Boston CBSA. Households in this zip code are approximately half as likely to have aDVR than the average American household. The dominant tapestry segment is International Marketplace, which is a very diverse segment.

Knowing what consumers spend their money on and how much is key to understanding their preferences and what they may or may not buy in the future. This information can help retailers, marketers, and distributors decide on what products to offer and where to offer them.

Coffee is a key part of many people’s day. While many go to their favorite coffeehouse to consume their favorite caffeinated beverage – or they get it at work, many also brew it at home and consume it there. The average American household spends about $64.20 on coffee each year. The average household in the Boston CBSA spends over 25 % more – $85.58. This higher than average spending on coffee could be due to factors such as higher cost of living as well as the cold Boston winters.

Average HH Annual Coffee Spend for Home Consumption by Zip Code

 

The zip codes around the center of Boston spend much more than the average American on coffee.    All of the zip codes that spend $100 per year on coffee to drink at home have median incomes of $80,000 or more.  The 5 zip codes with the highest average household spending on coffee were 02493, 02030, 02481, 01770, and 02468.  Each of these zip codes had an average of $158.10 spent per household on coffee.  The dominant tapestry segment for all of these zip codes is Top Rung.  Residents of Top Rung neighborhoods are mature, married, highly educated, and wealthy.

Health insurance is a concern of most Americans and has been on the agenda of politicians for many years.  It is one of the foremost topics for the 2012 presidential election.  The average American household pays about $1,865 annually for it.  Many factors go into how much one pays including family size, age, health condition, and much more.  It can also vary based on where you live – from the state, city, and even neighborhood.  The average household in Boston pays $2,272.75 which is about 20% more than the average American household.

Average HH Health Insurance Spend by Zip Code

While it’s difficult to say why one area has higher health insurance than another as there is so many complex factors, we can determine that overall in Boston, the range that a household pays is “typical”. That said, there are areas that pay significantly more than average. The top five are all have a dominant tapestry segment of Top Rung. They are 02493, 02030, 02481, 01770, and 02468. Their indices are 233 or higher meaning they pay, on average, 2.33 times more than the average American household. Each of these zip codes have median incomes of $169,297 or higher. These higher incomes may result in the households purchasing more comprehensive health insurance. Information about health insurance can help health industry professionals determine what services or clinics may be needed in an area.

What does this all mean in terms of Boston?

Well, in these criteria, its indices are slightly higher than the typical American. The higher spending on coffee and health insurance may be due to the higher incomes as well as the higher cost of living. I am sure there are other criteria where it is much different due to interests and available of products. It’s important for companies to understand each individual market – and even neighborhood – as there are distinct differences among them.

This is the part of a series about various local markets around the country.

More information about Esri’s data can be found at www.esri.com/data or to learn more about Esri in general, go to www.esri.com.