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Report Capstone Week 4

The document analyzes neighborhoods in Manhattan, New York to determine the optimal location for a new sushi restaurant. K-means clustering was used to group neighborhoods based on their number of existing sushi bars. The results showed that Cluster 3 (Upper West Side) and Cluster 4 (Morningside Heights) had the fewest existing sushi bars and therefore represented the best opportunities. While the analysis was limited, it provided a framework and initial recommendations for where a new sushi restaurant could find success due to lower competition in those neighborhoods.

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51 views

Report Capstone Week 4

The document analyzes neighborhoods in Manhattan, New York to determine the optimal location for a new sushi restaurant. K-means clustering was used to group neighborhoods based on their number of existing sushi bars. The results showed that Cluster 3 (Upper West Side) and Cluster 4 (Morningside Heights) had the fewest existing sushi bars and therefore represented the best opportunities. While the analysis was limited, it provided a framework and initial recommendations for where a new sushi restaurant could find success due to lower competition in those neighborhoods.

Uploaded by

agash
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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The Battle of the Neighborhoods - Report

1. Introduction & Business Problem :


The City of New York, is the most populous city in the United States. It is diverse and
is the financial capital of USA. It is multicultural. It provides lot of business
oppourtunities and business friendly environment. It has attracted many different
players into the market. It is a global hub of business and commerce. The city is a major
center for banking and finance, retailing, world trade, transportation, tourism, real
estate, new media, traditional media, advertising, legal services, accountancy,
insurance, theater, fashion, and the arts in the United States. This also means that the
market is highly competitive. As it is highly developed city so cost of doing business is
also one of the highest. Thus, any new business venture or expansion needs to be
analysed carefully. The insights derived from analysis will give good understanding of
the business environment which help in strategically targeting the market. This will help
in reduction of risk. And the Return on Investment will be reasonable.

Business Problem
The City of New York is famous for its excelllent cuisine. It's food culture includes an
array of international cuisines influenced by the city's immigrant history. Sushi
restaurants have become so popular in the United States now it seems that there is one
on every corner, not only in major cities but also in smaller cities. Starting a sushi
restaurant can be a great business opportunity, but you need to distinguish yourself
from others to enjoy long-term success.

If you plan a real restaurant that can demand higher prices for fresh fish, delivered daily
from Japan, focus on neighborhoods and outlets that already attract a sophisticated
Japanese client. If you plan a cheap buffet restaurant, points to the masses looking for
affordable high-traffic locations with large shopping centers and other local points of
interest.

My client wants to open his business in Manhattan area, so I focus on that borough
during my analysis. We define potential neighborhood based on the number of sushi
bars which are operating right in each neighborhood. Manhattan has full potential but
also is a very challenging district to open a business because of high competition. New
sushi bar should be open in an area that inadequate neighborhood in this way the bar
can attract more customers. Therefore, this analysis necessary to ensure that we have
enough customers and that we are not so close to other sushi places.

2. Data
Data 1: Neighborhood has a total of 5 boroughs and 306 neighborhoods. In order to
segement the neighborhoods and explore them, we will essentially need a dataset that
contains the 5 boroughs and the neighborhoods that exist in each borough as well as the
the latitude and logitude coordinates of each neighborhood. This dataset exists for free
on the web. Link to the dataset is: https://geo.nyu.edu/catalog/nyu_2451_34572

Data2: Newyork city geographical coordinates data will be utilized as input for the
Foursquare API, that will be leveraged to provision venues information for each
neighborhood.We will use the Foursquare API to explore neighborhoods in New York
City. The below is image of the Foursquare API data.
In addition, Sushi category Id 4bf58dd8d48988d1d2941735 is used for retrieving data
from Foursquare API.

3. Methodology
In this project, I will use the basic methodology as taught in Week 3 lab.
Above, I have done convert addresses into their equivalent latitude and longitude
values. Then we will use the Foursquare API to explore neighborhoods in Manhattan,
New York. After that, explore function to get sushi restaurant categories in each
neighborhood.

Sushi bars in Manhattan


Then use this feature to group the neighborhoods into clusters K-means clustering
algorithm will be use to complete this task. And also, the Folium library to visualize
the neighborhoods in Manhattan and its emerging clusters.
4. Results
K-mean Cluster Using K-mean to clustering data area with less number of sushi bars

Cluster 0

Cluster 1

Cluster 2
Cluster 3

Cluster 4

Based on dataframe analysis above Cluster 3 (Upper West Side ) and Cluster 4
(Morningside Heights) areas are the best places to open a new sushi bar business.
5. Discussion
In this section, I would be discussing the observations I have noted and the
recommendation that I can make based on the results.

This analysis is performed on limited data. This may be right or may be wrong. But if
good amount of data is available there is scope to come up with better results.
• There is high competition in Midtown and Soho so it is very risky to open
business in these areas.
• Central Harlem has also potential where closes to Morningside Heights area.
• It can be done more detailed analysis by adding other factors such as
transportation, demographics of inhabitants.

Finally, FourSquare proved to be a good source of data but frustrating at times.


Despite having a Developer account I regularly exceeded my hourly limit locking me
out for the day.

6. Conclusion
Although all of the goals of this project were met there is definitely room for further
improvement and development as noted below. However, the goals of the project were
met and, with some more work, could easily be devleoped into a fully phledged
application that could support the opening a business idea in an unknown location.

As per the neighbourhood or restaurant type mentioned like Sushi restaurants analysis
can be checked. A venue with lowest risk and competition can be identified.

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