QADG Consulting
Proposal to Athletic Gym of NYC and Eclectic Food Carts of NYC
Who We Are
QADG Consulting is a company of four data science professionals whose primary goal is to help retail businesses expand into growing residential and commercial areas. We use advanced data science techniques to analyze this growth and predict what geographic areas will be best suited for the client to be “first-in” for their business. We tend to focus on up-and-coming areas close to but separate from major metropolitan areas. Not only does QADG identify these high-value growth areas, we take the client through every step of the new-business process.
Current Clients, Project, and Goals
Athletic Gym of NYC is a successful chain of boutique health and fitness centers in New York City. As their model of small, cutting-edge studios is starting to gain traction in the city and with the projected net revenue increase of $400k per gym in a first-in area, it is time for AG-NYC to start looking at the surrounding areas of Manhattan for growth. We have identified three areas in Brooklyn and Queens that have seen a significant increase in foot traffic over the past two years. That data highlights the growth of those residential and commercial areas and makes them perfect locations for AG-NYC to add a studio.
Eclectic Food Carts of NYC is an up-and-coming small business that owns multiple food trucks and carts dispersed throughout New York City. Their business is unique in that they send multiple trucks and carts to each location, offering a wide variety of food throughout the day, making locations that are growing both residentially and commercially extremely high value. Of the three locations we have found in this project, we feel two in particular are ideally suited for the expansion of EFC-NYC’s business with a projected annual net-revenue increase of $500k per new food truck.
Proposed Target Locations
After analyzing turnstile data for New York City Subway stations over the past two years, QADG proposes the following three areas for high-value growth potential and business expansion:
- Court Square-Queensboro neighborhood in Queens
- West Midwood neighborhood of Brooklyn between the H and J subway lines
- Corona, Queens between the 111 St and 103-Corona St subway lines
Court-Square/Queensboro - Queens
The Court Square-Queensboro area of Queens has seen a 10% foot traffic increase over the past two years. The area has also seen a large real-estate boom over the last three years with prices increasing over 30% (source, NY Daily News), a trend that is expected to continue through 2018. As one resident said, “It’s definitely become the new ‘it’ neighborhood for Queens. Artists and families know they get more for their dollar than Brooklyn and Manhattan. It’s still gritty and cool with great value” (**source, NY Daily News). The triangular area between the Queens Plaza, Queensboro, and Court Square subway stations would thus be an ideal location for both a new Athletic Gym of NYC studio and a series of Eclectic Food Trucks targeting both the residential parts of the neighborhood and the commercial area, that has also seen growth over the last two years.
West Midwood – Brooklyn
The West Midwood neighborhood of Brooklyn is a planned community located between Flatbush and Coney Island in the central part of the borough. Foot traffic in the area has increased by 13% over the past two years according to MTA Turnstile data, confirming the neighborhood’s growth and in line with the growth of Brooklyn as a whole, which has seen a 21% increase in businesses between 2003-2015 (highest in NYC) and a 28% growth in employment over that same time period (source, Economic Snapshot of Brooklyn, Brooklyn Comptroller). West Midwood’s ideal location, just South of the Brooklyn Business District and near Brooklyn College, has made it ideal for the residential growth that we are seeing through the increased foot traffic through the subway system. A new Athletic Gym facility would be ideal between the two stations as would food trucks during the morning and afternoon commutes.
Corona/Flushing – Queens
The Corona neighborhood in Queens, bordering Flushing and close to the USTA Tennis Center and Citi Field, has also seen a significant increase in foot traffic. The area between the 103 St and 111 St stations has seen an increase of 11% over the last two years according to MTA turnstile data. Housing data also supports this trend with median sales price and number of sales in the neighborhood almost doubling over the past 5 years (source, Trulia. The Queens economy has continued to flourish while NYC has slowed a bit with some predicting that Queens will become the next Brooklyn. Against this backdrop, the Corona area is ideal for the expansion of an Athletic Gym studio, and could even be a diamond in the rough for this community. It remains to be seen whether this location will be good for Food Truck expansion given that it’s more residential and further away from business activity.
Conclusions/Next Steps
The areas highlighted in Brooklyn and Queens have seen above average economic growth over the last few years and an ensuing increase in foot traffic as supported by our MTA turnstile data. As location and foot traffic is a primary business driver for both Athletic Gyms and Eclectic Food Trucks, these areas are ideal for the expansion of your businesses. With an agreement, QADG will continue its data analysis, focusing specifically on demographic and population data, city zoning and permit data, market-specific predictions, market entry strategies, and other possible growth locations such as 116th St/Columbia and the Zerega Ave neighborhood in the Bronx. to help get your new businesses off the ground.