New Business Locations: Predicting the Future of Coffee Shops in New York City
Anastasia Dolgorukova, student of the Master’s programme ‘Prototyping future cities’, did Big Data analysis of NYC neighborhoods to reveal best locations for new coffee shops. Considering this, it was possible to find a total number of coffee shops – 5332 using with YELP API*. You can hardly ever find another city with such high density of places that sell coffee.
NYC Coffe Shops
The map below displays all 5332 coffee shops in NYC. Each point on the map represents business location and price level for each coffee shop (from Lvl 1 - lowest prices to Lvl 4 - highest prices). We can already see that one borough in NYC is more popular than others (Manhattan).
Using open data resources and tools of some disciplines including statistics, programming, machine learning and spatial analysis it was possible to formulate a rating based model. It showed the most perspective areas with low competition level for building a new coffee shop for each price level. The results show that it is economically more promising to open a coffee business in the Bronx and Queens than in Manhattan. This knowledge will reduce costs and help entrepreneurs in deciding on pricing and location of the business. In addition, land owners will be able to better understand their potential tenants.
Based on this research and KISS principle** in making UI (user interface), it is possible to create an application prototype that is comprehensible and easy in use. Navigating through the web-based application will help entrepreneurs to understand the current competition level in NYC and decide where to locate their coffee shop business.
We can use any available data that can be transferred to almost every sphere of contemporary urban living. It can help to segment audience. Through Big Data and visualization we have an ability to predict how future city landscapes can be changed and transformed, and affect spatial economics.
* YELP – web-site with User Reviews and Recommendations of best restaurants, shopping, nightlife, food, entertainment, things to do, services and more. API – application program interface.
** KISS principle (“keep it simple, stupid”) states that most systems work best if they are kept simple rather than made complicated