Less competition or greater purchasing power? Attractiveness of São Paulo’s districts for restaurants

Rodolfo Ribeiro, Alexander Homenko Neto and Daniel Kusters

Quaestum, 2025, vol. 6

Abstract: The literature in the field of management widely recognizes the influence of the external environment on organizations, both in planning processes and in the results achieved. Variables such as demographics, economic conditions, and the degree of competition frequently comprise the set of factors analyzed in evaluating the attractiveness of a business environment, whether for ventures in the implementation phase or consolidated ones. This study aimed to analyze the attractiveness of districts in the municipality of São Paulo (SP) for the food retail sector. Two main dimensions were used: the purchasing power of the population and the intensity of competition. The survey of establishments was carried out through integration with the Google Maps platform. The intensity of competition was estimated by the ratio between the number of restaurants and the district population. Purchasing power was calculated based on the relationship between the average household income of the districts and the prices of the products offered, resulting in the identification and collection of prices from 3,086 establishments. Cluster analysis classified the districts according to the similarity of the variables considered. The resulting groups showed significant differences in price variation and the presence of establishment networks (companies with multiple units, such as franchises). Notably, the districts with higher purchasing power, although with relatively higher competition, concentrated more networks and greater price diversity, indicating a less hostile competitive environment. It is concluded that the results highlight relevant trade-offs for location strategies and contribute to the understanding of business decisions in the sector.

Keywords: Productivity; Analysis (search for similar items in EconPapers)
Date: 2025
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