How can a restaurant choose the perfect location for its next opening before signing the lease? How can an F&B brand identify the most profitable markets for international expansion? The answer lies in turning raw location data—such as points of interest and customer experience insights—into actionable strategies that drive real sales results.
Understanding opportunities in the on-premise channel
The HORECA sector is increasingly complex. Beverage brands, in particular, face immense opportunities, but also significant risks. Every decision to enter a new market, form a partnership, or expand carries financial weight. Historically, these decisions were based on intuition, anecdotal evidence, and limited research, relying on sales managers’ personal observations or outdated demographic reports. While experience remains valuable, the global marketplace is far more dynamic, and traditional methods simply can’t keep up.
Today, location intelligence is transforming the way brands evaluate expansion opportunities. By combining geospatial data with consumer insights and market trends, businesses can now make expansion decisions rooted in real-time, data-driven understanding rather than relying on guesswork.
Why data matters—and what drives results
“Big data” is a buzzword, but not all data is created equal. For HORECA brands seeking global expansion, three types of data are particularly critical:
- Quantitative metrics such as venue locations, foot traffic patterns, sales volumes, and operational details form the foundational layer of location intelligence. These numbers reveal the basic facts of a market or venue.
- However, qualitative insights—gathered from customer sentiment, review analysis, and social media discussions—offer vital context that raw numbers can’t provide. These insights help explain why a venue may be busy yet fail to convert foot traffic into customers. For example, customer reviews might praise a venue’s ambiance but consistently criticise its menu.
- Competitive intelligence is also essential. Understanding where competitors are located, the products they offer, and their pricing strategies completes the market picture. With this data, brands can avoid overcrowded markets and identify areas where their offerings might stand out.
By integrating these three types of data, brands can gain a complete understanding of a location’s potential. A venue with high foot traffic but poor customer sentiment might be less valuable than a quieter venue with strong, positive reviews.
Location data as the foundation: POI, sentiment, and popularity
POI (Points of Interest) data is at the core of location intelligence. A POI refers to any location that is relevant to consumers or businesses, such as restaurants, hotels, bars, or event venues. Each POI offers granular information, including its name, category, geographic coordinates, opening hours, and even user-generated content like reviews and photos.
Modern POI datasets go beyond basic listings, incorporating factors such as sentiment analysis derived from customer reviews, social media posts, and online discussions. This sentiment data provides deeper insights into how customers perceive a venue. For instance, a venue might have a high number of visitors, but if sentiment is predominantly negative due to poor service or product offerings, the venue’s long-term success could be in jeopardy.
Popularity and footfall metrics also help track a venue’s performance over time, identifying emerging hotspots before they hit their peak and flagging venues that may be on the decline. A bar that’s trending on social media or a café becoming a local institution can be identified early, while an establishment losing relevance might be caught before it becomes a financial liability.
In addition to popularity trends, demographic data reveals who visits each location, when, and what they spend. For beverage brands, this can answer crucial questions such as which venues attract the right target demographic, where competitors are already entrenched, and where gaps in demand might exist.
Transforming data into expansion strategy
The true value of location data emerges when it is analysed and transformed into actionable strategies. Expansion decisions can now be based on quantifiable factors such as consumption patterns, competitor saturation, and venue performance, rather than subjective assumptions.
Rather than evaluating entire cities based on population size alone, brands can look at real-time metrics such as venue density, customer demographics, and market growth potential. This allows for more precise market prioritisation. For example, an emerging neighbourhood in a city might present better growth prospects compared to more mature and competitive areas, like the city centre.
Venue selection also shifts from relationship-driven decisions to data-optimised strategies. Sales teams can use data to identify locations with the highest likelihood of success, enabling them to focus on the most promising venues rather than wasting resources on less viable ones.
Market fit becomes easier to assess, as location intelligence reveals local consumption trends, product preferences, and potential gaps in the market. Brands can then tailor their offerings to align with local tastes rather than making assumptions based on broader, regional trends.
Timing optimisation is another key benefit. Location intelligence can identify when new venues typically launch, track competitor activities, and highlight seasonal patterns. This allows brands to time their market entry when conditions are most favourable—whether that means capitalising on emerging venues or avoiding saturated markets.
For example, a beverage brand considering European expansion might find that while London is a competitive market, secondary cities like Lisbon, Porto, and Copenhagen show emerging trends with stronger growth potential and less competition. This data-driven insight can guide resource allocation and prioritise markets with the highest chance of success.
Reliable, integrable datasets: selection criteria
The quality of location intelligence depends on the data sources used. Brands should ensure they evaluate potential datasets based on several factors:
- Global coverage with local depth is critical. A dataset must span multiple international markets and provide detailed insights at the neighbourhood level, as surface-level national data offers little value for location-specific decisions.
- Data update frequency matters as well. Real-time data is essential to track emerging trends and shifts in market dynamics. Stale data can lead to missed opportunities or misinformed decisions.
- System integration is crucial. For location intelligence to be effective, it must seamlessly integrate with existing business workflows, such as CRM systems and sales planning tools. This ensures that insights are accessible and actionable when needed.
- Customisable metrics allow brands to tailor their analysis to specific priorities. Whether a brand is focused on high foot traffic, local loyalty, or premium product appeal, the data provider should accommodate these differing needs.
- Data verification and accuracy are also essential. It’s important to understand the methodology behind the data collection and ensure it can be verified against real-world observations to maintain accuracy and reliability.
Concrete advantages: why location intelligence delivers results
Brands that embrace location intelligence typically see a range of benefits:
- Accelerated decision-making: The speed at which brands can now make decisions is far quicker than traditional methods, helping them capitalise on market opportunities before competitors.
- Resource optimisation: By focusing on high-probability prospects, sales teams can significantly increase conversion rates and avoid wasted effort on low-potential venues.
- Risk mitigation: Data-driven decisions help reduce costly mistakes, such as entering overly competitive markets or partnering with venues that don’t meet customer expectations.
- Competitive advantage: Brands that implement location intelligence gain a first-mover advantage and optimise their market positioning, which ultimately compounds over time.
- Revenue growth: By identifying and prioritising the most profitable opportunities, brands can accelerate revenue while maintaining or improving margins.
The future of HORECA: data-driven decisions
Integrating location intelligence is crucial for HORECA brands looking to expand globally. Data on POIs, sentiment analysis, and popularity metrics provide visibility into market opportunities, enabling fast and informed decision-making.
Data Appeal’s solutions, such as data packages and customisable APIs, offer detailed insights into location performance, consumer trends, and sentiment across different regions. This supports the selection of the best locations and optimal resource allocation. Brands that know how to strategically apply these insights can reduce risks and accelerate growth in an increasingly competitive HORECA market, ensuring sustainable and targeted expansion.
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