Local Density vs New-City Expansion

A short regional coffee chain decision problem. Use the supplied facts, commit to one action, then check your reasoning. Fictional practice; no leaderboard score is recorded.

Regional coffee chain · deepen versus expand

You have six stores in one metro. Same-store sales are growing 9% a year and all six are profitable. You could open three stores in a new city 200 miles away, or three more in your existing metro.

Given fact	Scenario data
Current stores	6 in one metro; all profitable
Same-store sales growth	9% per year
Expansion choice	3 stores in either location
New city distance	200 miles

Which is the lower-risk path to the same growth?

Choose an action, then lock it in to reveal the reasoning. This is untimed practice.

The new city, to avoid competing with your own storesThe existing metro, where brand, supply and management already workSplit them, opening in bothNeither; grow only through existing stores

Read the framework

How to Decide Whether to Expand to a New Location or Market

Local Density vs New-City Expansion

Read the framework

Try another case