How many coffee shops are there in San Francisco?

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How many coffee shops are there in San Francisco?

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nickmsls · Answer 1 · 2021-12-19T20:34:40+0000

To find the # of coffee shops, need to compute 1&2 and then divide 1 (demand) by 2 (supply).

1. How many people buy coffee from a coffee shop in SF every day?

2. How many cup of coffees made/prepared by single coffee shop in SF every day?

Estimate 1: Assume 900.000 people live in SF. Only 60% of them like to drink coffee, 900k*0.6=540k. Half of that population prefer buying from shop while the rest prepares coffee at home, 270k.

Estimate 2: 1 coffee prepared in 4 mins, 2 people preparing coffee -> 2 min/coffee. Store open for 12 hours/day on average. Total # of coffees prepared/day= 12*60 mins/2mins=360

#of coffe shops = 1/2=270k/360=750

hjc · Answer 2 · 2020-09-01T06:05:44+0000

Clarifications:

* Coffee shops are the shops who mostly serve coffee, such as Stuckbucks, but not including restaurants who also provides coffee? [Yes]

Top down approach:

* In Palo Alto, about 60K residence, about 20 coffee shops

* San Franciso has about 800K residence, so # of coffee shops are roughly 800K/60K*20=260

Bottom Up approach:

* Avg 2 min to make a cup of coffee, 12 hours a day, so about 360 cups per maker

* avg 2 makers per shop, so 720 cups of coffee sold per day per shop

* 10% of the population will order 1 cup of coffee a day, so totally about 80k cups

* so # of coffee shops in SF is about 80k/720=110

This matches the top down approach on the order of magnitude.

If I have to make some adjustment, I would assume the coffee shop won't be always busy, and will sell for about 500cups a day or less, so there should be about 160~260 coffee shops in SF.