Question

You have commissioned a local survey to see what consumers are most interested in.

Survey Data

78% of survey participants desire a store that offers custom outdoor sports equipment.
9% of participants think an additional coffee shop is needed.
26% of participants say that they purchase coffee on a daily basis.
Based on the survey data, which business will most likely see higher consumer demand?

Based on the survey data, what may occur if an additional coffee shop is opened?

Answer 1

Which business will most likely see higher consumer demand?
- The custom outdoor sports equipment store. 78% of respondents expressed desire for that store, far higher than the 9% who explicitly said an additional coffee shop is needed.

What may occur if an additional coffee shop is opened?
- Limited expressed unmet demand: only 9% said an additional coffee shop is needed, so the market for a new general coffee entrant looks small relative to the demand for custom equipment.
- Existing demand for coffee is nontrivial: 26% buy coffee daily, so there is a steady base of buyers — a new shop could capture some of that traffic, especially if it offers convenience, better quality, price, or a distinct niche.
- Likely outcomes:
- Some customer capture from existing coffee shops (cannibalization) rather than growth of total market.
- Increased competition may put pressure on prices/margins and could force differentiation or promotions.
- If well located or differentiated, the new shop could succeed by attracting a share of the 26% daily buyers; if not, it risks underperformance because only a small share (9%) indicated an unmet need.
- Recommended next steps before opening a coffee shop: map current coffee-provision points, learn where daily buyers currently go and what they want, test concepts (menu, pricing, location), and consider combining coffee with another draw (e.g., gear shop, co-working, specialty niche) to improve viability.