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Leveraging Places Data to Make Informed Investment Decisions

May 31, 2024
Elianne Marcus

The Challenge of Getting the Complete Picture

For data scientists conducting due diligence for deal sourcing teams, gaining a comprehensive view of a company's performance relative to its industry peers is incredibly challenging. This task is further complicated when evaluating businesses with a physical presence or those providing services to brick-and-mortar establishments. In these scenarios, up-to-date and accurate location data is crucial. However, obtaining this data can be difficult, as open source data often lacks precision, and web-crawling methods can be time consuming and unreliable if not done properly.

In this blog, we'll explore why using point of interest (POI) data is essential for accurate market analysis and illustrate how it was effectively leveraged by a private equity firm to assess a potential acquisition.

Why Use POI Data for Investment Diligence 

Before diving into our specific use of SafeGraph Places data, it's important to contextualize why POI data is invaluable for investment research and due diligence.

  • Coverage of POIs in specific categories and regions helps assess the saturation of brands and potential market share.
  • Competitive analysis examines the volume of key competitors in the vicinity, a crucial factor for any new location.
  • Accessibility of the location, including ease of entry and availability of parking, directly impacts customer footfall.

By leveraging accurate and up-to-date POI data, businesses can minimize risks and create educated hypotheses about a store’s potential for success.

Case Study: Dunkin’ and Starbucks in Broward County, Florida

In collaboration with a prominent private equity firm who was looking to acquire a coffee shop chain, SafeGraph provided Places data to perform an in-depth market map analysis of the quick-service restaurant (QSR) chains, Starbucks and Dunkin’ in Broward County, Florida. This data allowed the firm to assess total addressable market (TAM), evaluate market performance by chain, identify submarket gaps, understand opportunities for chain expansion, and cannibalization.

TAM, Saturation, and Competitive Analysis

Using SafeGraph Places data, the firm mapped out all Dunkin' and Starbucks locations within Broward County, Florida in Esri ArcGIS. They found that both chains had a significant presence, with multiple outlets scattered throughout the county. 

Dunkin' and Starbucks locations mapped in Esri ArcGIS


They analyzed the accessibility of these locations by considering factors such as ease of entry, parking availability, and proximity to major roads and commercial centers. Their findings indicated that both Starbucks and Dunkin’ generally had good accessibility due to their positioning near high traffic areas and shopping centers. However, this also suggests that future expansion could be more challenging due to higher barriers to entry in these prime locations.

Insights and Recommendations

By leveraging SafeGraph Places data, we provided the private equity firm with high quality data to generate actionable insights:

  • Market Expansion Opportunities: Identified specific areas in Broward County with gaps in coffee shop presence, highlighting potential locations for new outlets.
  • Competitive Positioning: Analyzed the locations of all major competitors to determine the most viable markets for expansion and competitive advantage.
  • Customer Engagement: Assessed site accessibility and provided recommendations for improving location convenience, aimed at increasing customer foot traffic and satisfaction.

By tapping into the granular and accurate data provided by SafeGraph Places, coupled with the powerful visualization capabilities of Esri, we offered the private equity firm a more holistic market picture for their market analysis. This approach not only supported strategic decision making for new investments but also enhanced the firm’s confidence in selecting an acquisition that was more likely to succeed.

For a limited time at no cost, download the Starbucks and Dunkin' POI dataset to see how SafeGraph Places data can help with informed investment decision making.

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