HDYR Retail Market Rollout

How Do You Roll (HDYR) is a hip and growing  “fast fresh casual” sushi concept.  Started in Austin Texas, the founders approached GeoStrategies for assistance in their market rollout to identify  the best areas for new franchise locations.

Engagement Goals

The purpose of GeoStrategies’ engagement was to first, determine the identity of target “Fast Fresh Sushi” customers, and to learn where the highest density of  those target customers lived, worked and shopped.  Second, we sought to “back-engineer” a respected Asian food restaurant’s rollout strategy to assist HDYR to best understand how many locations a market could support, and the distances between franchise locations

Who are They?

people2.jpgThe first thing we do to support a roll out strategy, is to gain a clear understanding of the primary customer – their age, income, family size, education – and then we want to find out where the greatest densities of those target customers live, work, and shop.

GeoStrategies did not have a data file of HDYR customers to profile and therefore utilized Experian’s Mosaic System to look for likely sushi customers.  After an analysis of the data, we identified 8 targeted, very specific household segments that were highly likely to consume sushi.

It is important to remember that all retail traffic originates from five different sources – from home; work; shopping; school; non-commute travel.   It is not simply enough to know where target customers live to produce a successful market rollout. Understanding the traffic source volumes is a very important part of the success equation.

Competitive Analysis

peiweiThe initial big questions that a retail concept has to answer correctly are these:

How many potential customers are required to support a location?
What should I expect as a trade area, based on customer commute?
How far apart should locations be to minimize cannibalization?
How many locations can any given metropolitan market support?

To help answer these questions, we recommend that our clients identify another retail concept in the same space, and we’ll “back-engineer’ their rollout strategy in one of their saturated, mature markets.  HDYR did not feel that there was a great example of a true competitor in their space, but suggested we back-engineer Pei Wei, a restaurant concept in the “hip Asian” space.  While not a perfect match, Pei Wei still provided us with enough information to advise HDYR on a strategy.  Pei Wei began its rollout in the Phoenix area, and so we decided to model the Pei Wei rollout in that market.  Below is the map of all Phoenix Pei Wei locations at the time of the project.


The result of the analysis allowed to understand clearly, how much market potential Pei Wei allows its locations to exclusively cover, how far apart they space locations to minimize cannibalization, trade area coverage estimates, and more.  HDYR had the ability take into consideration this competitive intelligence, and to adopt it, or augment it, or to strategize against it.


Where are They? Go To Market Strategy

GeoStrategies first provides a market rollout strategy that identifies all of the micro areas of interest that meet the minimal threshold to support a site at the specified trade area radius with minimal distance between sister locations.  A rollout can be performed at the metro, regional, or national level.  Within these areas of interest, our clients have the leeway to look for locations.

San Jose

We also score the quality of every  area with a 3-digit score.  Each of the three digits identifies the level of potential traffic to the locations, with 9 being highest and 0 being the lowest.    A target area that scores a 999 would indicate a top-scoring location in all three traffic sources compared with all of the other proposed target areas in the study.  This provides our clients with the ability to prioritize their roll out and take higher quality areas into consideration.


Final Results

HDYR has placed 13 locations in its first 3 years, and with its successful presentation on the hit show, “Shark Tank”, HDYR is on its way to becoming a nationally known brand. In September of 2013, they inked several deals that will open 70 new locations over the next ten years.


For more information this case study, or on how we can help your company with its retail rollout go-to-market strategy, contact GeoStrategies at (800) 738-4GEO