Market Research

Analysis
By: Kelly Struck, Samantha Schwab, Kristen Watts, Reyniel
Afuang , Alexia Ciarfella
 The target market for our restaurant includes people who appreciate and are interested in

technology (young educated individuals/ individuals who work in the surrounding businesses of

Twitter and Google offices and are of high class). Figure 1 indicates a demographic for our

restaurant. The median age in Chelsea, New York is 37 years old which matches our intent to

reach a young technology- obsessed crowd. Also it is important to indicate that the population of

Chelsea, New York is very large at 72,372 giving us a huge client base. There are many more

white collar workers than blue collar workers which correlates with our want to reach higher

income individuals and families. Figure 2 displays this fact. Also, since we are open late and are

wanting a young crowd, Figure 3 is helpful to our intent to be a late night restaurant/bar and have

a part in the nightlife scene in Chelsea. It indicates that Chelsea has more non-family households

than family households (meaning a lot of single individuals in Chelsea, New York). The average

household is less than 2 people (Figure 3) and the majority of people in Chelsea are not married

(Figure 5).

The statistics on degree holders in Chelsea, New York are also promising. Figure 4

illustrates that the people of Chelsea, New York are well educated people. Most individuals in

Chelsea have either a bachelor or master’s degree (Figure 4). The median income of the people

of Chelsea, New York is $94,586 for the ages of 25-44 (Figure 6). Furthermore, the average

household income in Chelsea, New York is $148,710 (Figure 7). Finally, the people of Chelsea,

New York spend more money on a variety of different areas of life including food,

entertainment, gifts, healthcare, education and more (Figure 8). These facts combined allude to a

market of people who generally have a higher income, have access to, and appreciate

technology. A lot of these individuals could be majors in technology or engineering fields that

would be interested in our unique futuristic 3D printers.

 Chelsea, New York also has a lot of individuals who visit the Joyce Theater, Rubin

Museum of Art, New York Live Arts, and the Atlantic Theater which means we have another

source of our consumers on the weekends and at night. This being said, there is a large weekend

scene in this area when the hotels and restaurants fill up with tourists and locals who attend

brunch and then go to galleries or open markets. Chelsea is home to Penn Station and it is

estimated that about 650,000 people go through Penn Station every day. This contributes to our

customer base. Subway stations are also available on almost every corner that contributes to easy

transportation to our restaurant. There is also a parking lot one avenue away from our restaurant

at 111 Eighth Avenue.

In addition, the area has a number of hotels for tourists and locals. Located a short

distance from BARCODE is the Chelsea Hotel, Gansevoort, Hotel Pennsylvania, and Courtyard

by Marriott. This is not including the number of hotels just outside of Chelsea which broadens

our customer base even more. Hotel Pennsylvania has 1,700 rooms, Cambria Hotel & Suites has

135 rooms, Chelsea Savoy Hotel 89 rooms, Chelsea Hotel has 250 rooms, The Gansevoort has

249 rooms, the Highline Hotel has 60 rooms, and the Courtyard by Marriott has 260 rooms.

There are also a number of attractions bringing potential customers to the area including Chelsea

Piers Sports and Entertainment Complex, the High Line, David Zwirner Gallery, Museum at

FIT, the Manhattan Mall, an AMC Loews to name a few. The area is also home to FIT, where

9,571 students attend. Companies in this district include Google, Twitter, Facebook, Airbnb,

WeWork and the Greenwich Village Chamber of Congress.

Looking at our competition, our three main competitors are TAO Downtown, Cafeteria,

and Sugar Factory. TAO Downtown boasts a menu of pan-asian cuisine and also a nightlife

lifestyle. They are a competitor due to offering a food style that is not offered on our menus,
making it an alternative to our restaurant. It also one of the few restaurants nearby that is also

open late (Sunday-Wednesday 5PM-12AM, Thursday-Saturday 5PM-2AM) being a clear

competitor in our pursuit of being a nightlife location.

The restaurant Cafeteria is open 24/7 and their target demographic are late night crowds,

specifically post-clubbing people. This is in competition with our goal of being a late night hot

spot. Our late night menus only include appetizers, while their menu is extensive. They also

serve alcohol. Sugar factory is one of our biggest competitors because they offer dessert, and

dessert alcoholic hybrid beverage options which is the main theme of our restaurant. They also

incorporate an interior that is classy and modern and has a minimalistic dessert theme. The

following pages condense our demographic research into charts and tables describing the

population of Chelsea, New York. Also included is a chart describing more of the competitors in

the area.

PART 1: DEMOGRAPHIC VISUALS & EXPLANATIONS

Figure 1

Total Population 72,372

Male Population 36,373
Female Population 35,999
Percent Change Since 2000 16.1 %
Percent Change Since 2010 -0.9 %
Median Age 37.32
Source: https://www.point2homes.com/US/Neighborhood/NY/New-York-
City/Manhattan/Chelsea-Demographics.html

Figure 2

White Collar 86,871

Blue Collar 35,404

Source: https://www.point2homes.com/US/Neighborhood/NY/New-York-
City/Manhattan/Chelsea-Demographics.html

Figure 3

Total Households 43,953

Family Households 11,195
Non-family Households 32,757
Households With Children 4,095
Households Without Children 39,860
Average People Per Household 1.58

Source: https://www.point2homes.com/US/Neighborhood/NY/New-York-
City/Manhattan/Chelsea-Demographics.html

Figure 4

No High School 2,683

Some High School 2,190
Some College 6,120
Associate Degree 1,887
Bachelors Degree 20,619
Graduate Degree 20,338

Source: https://www.point2homes.com/US/Neighborhood/NY/New-York-
City/Manhattan/Chelsea-Demographics.html

Figure 5

Never Married 35,372

Married 13,121
Separated 2,455
Widowed 808
Divorced 3,669
Source: https://www.point2homes.com/US/Neighborhood/NY/New-York-
City/Manhattan/Chelsea-Demographics.html

Figure 6

Median Income Under 25 $49,500

Median Income 25-44 $94,586
Median Income 45-64 $83,667
Median Income Over 65 $54,921

Source: https://www.point2homes.com/US/Neighborhood/NY/New-York-
City/Manhattan/Chelsea-Demographics.html

Figure 7

$148,71
Average Household Income
0
Median Household Income $83,239
Percent Increase/Decrease in Income Since 2000 58%
Percent Increase/Decrease in Income Since 2010 8%
$1,130,
Average Household Net Worth
233
$1,225,
Median Home Sale Price
657
Sales Tax Rate 8.875%
Average Household Total Expenditure $93,975

Source: https://www.point2homes.com/US/Neighborhood/NY/New-York-
City/Manhattan/Chelsea-Demographics.html

Figure 8
Consumer spending in Chelsea
National Average
Below Average Above Average

Total Household Expenditure

169
Contributions
208
Insurance
194
Clothing
174
Education
213
Entertainment
172
Food
161
Health Care
159
Household Furnishings
178
Shelter
174
Household Operations
188
Other
166
Personal Care
168
Reading
175
Tobacco
137
Transportation
155
Utilities
158
Gifts
199

Source: https://www.point2homes.com/US/Neighborhood/NY/New-York-
City/Manhattan/Chelsea-Demographics.html
Source: http://www.city-data.com/neighborhood/Chelsea-New-York-NY.html

This shows that most people in Chelsea, New York work a 9-5 job which matches our business
hours. Being near the businesses of Google and Twitter (Buzzfeed also being nearby), we want
these people to come into our restaurant and our hours allow these individuals to come after they
are done with work.

Source: http://www.city-data.com/neighborhood/Chelsea-New-York-NY.html

This graph helps us see that a lot of people use public transportation and modes other than
driving to get to our restaurant. It helps that there are subway stations right near our restaurant
and that people will already be in the area for both work and pleasure activites (theater etc.)
Source: http://www.city-data.com/neighborhood/Chelsea-New-York-NY.html

Percentage of males in computer and mathematical occupations: Here:5.7% City: 3.5%

Percentage of females in computer and mathematical occupations: Here: 2.0% City: 1.3%

Individuals in computer and mathematical occupations would likely be interested in the premise
of our restaurant and are therefore part of our target market. It is helpful to us that these
percentages of people are higher than in the rest of the city further reiterating our choice for
location.

Source: http://www.city-data.com/neighborhood/Chelsea-New-York-NY.html

COMPETITORS:

TAO Downtown - Located at 92 9th Ave, New York, NY 10011

Website:

https://taodowntown.com/

Cafeteria - Located at 119 7th Ave, New York, NY 10010

Website: http://cafeteriagroup.com/

Sugar Factory American Brasserie - Located at 835 Washington St, New York, NY 10014

Website:

https://sugarfactory.com/location/nyc-meatpacking-district/

Key features and other competitors are shown in the following table:

Restaurant Theme Price Range Location Hours of Operation Features

Name

TAO Asian $4 to $34 for 9th Ave, New Sunday-Wednesday Nightlife

Downtown Cuisine food York, NY 5PM-12AM &
$9 to $2250 for 10011 Thursday-Saturday Modern
liquor 5PM-2AM
(including
 bottles)

The Grey Dog Comfort $2.34 to $15.95 242 W 16th St, 7:30PM-10PM Cafe, bar,
food Liquor is at New York, NY Daily happy
market value 10011 hour

Old Steakhouse $6 to $105 56 9th Ave, Monday-Thursday Classic &

Homestead $7-$1930 New York, NY 12PM-10:30PM rustic
Steakhouse (including 10011 look
bottles) Friday
12PM-11:30PM

Saturday
1-11:30PM

Sunday
1-9:30PM

Sugar Factory Alcohol & $6 to $49 835 Monday-Thursday Nightlife,

American Dessert Washington St, 11AM-12AM dessert &
Brasserie New York, NY drinks
10014 Friday
11AM-2AM

Saturday
10AM-2AM

Sunday
10AM-12AM

Cafeteria Late Night $3 to $32 Open 24/7 Swanky

Eats $7 to $13 119 7th Ave, diner
New York, NY aimed at
10010 post-
clubbers