Market Sizing: Coffee Shops in NYC
McKinseyTechnicalDifficulty: Easy
Share on
Ready to answer it out loud?
Run a mock interview on this exact question and get instant AI feedback.
Question Explain
Estimate the number of coffee shops in New York City.
Requirements:
- Structure your approach
- Show your calculations
- State your assumptions
- Consider market factors
Example framework: Population → Target Market → Consumption → Competition
Answer Example
Market Sizing Analysis:
- Framework:
interface MarketSizing {
population: number;
targetMarket: {
percentage: number;
frequency: number;
};
competition: {
marketShare: number;
averageRevenue: number;
};
}
class MarketAnalysis {
calculateMarketSize(): number {
const nyc = {
population: 8_400_000,
workingAge: 0.65,
coffeeConsumers: 0.70
};
return this.calculateTotalShops(nyc);
}
}
-
Calculations: a) Target Market
- NYC Population: 8.4M
- Working age (18-65): 65% = 5.46M
- Coffee drinkers: 70% = 3.82M
b) Consumption Pattern
- Average visits: 3x/week
- Annual visits: 156 visits/person
- Total visits: 596M visits/year
c) Shop Capacity
- Average daily customers: 200
- Operating days: 360
- Annual capacity: 72,000 customers
-
Result:
- Required shops = 596M / 72,000 ≈ 8,300 shops
-
Validation:
- Population density check
- Competition analysis
- Market saturation
- Geographic distribution
Company Context (McKinsey):
- Structured thinking
- Clear assumptions
- Data-driven approach
- Practical considerations
Related Interview Questions
Knowledge of storage architectures and types
AmazonMedium
Merge Two Sorted ArraysGoogleEasy
Basic String ManipulationAdobe
Investment Portfolio OptimizationGoldman SachsMedium
Can you share an example of using innovative problem-solving skills to overcome a major work challenge?GoogleHard
How would you implement a custom authentication mechanism for a new AEM feature while adhering to AEM's security best practices?PwCHard
What strategies help you solve complex technical problems under pressure?eBayHard
Cybersecurity SolutionsMetaHard