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Choosing a location for a sandwich shop — 6-mark explain

GCSE · Business Studies · Edexcel · 1.4.2 — Business location: factors influencing the location of a business (proximity to market, labour, materials, competitors; rent and rates; transport links); influence of the Internet on location decisions

Question

Edexcel 1BS0 Paper 1 style

Sara is opening "Bite-Size", a takeaway sandwich shop. She is choosing between (A) a unit on a busy high street near a hospital and university (rent £1,800/month) and (B) a unit on an industrial estate (rent £600/month) with parking but little passing trade.

Explain two factors Sara should consider when choosing between location A and location B.

[6 marks]

Mark scheme (AO1 + AO2 + AO3):

AO1 (up to 2 marks):

  • Proximity to market matters because takeaway sandwich shops depend on lunchtime footfall (B1).
  • Rent is a fixed cost that affects break-even and profitability (B1).

AO2 (up to 2 marks):

  • Location A offers daily footfall from a hospital and university — high lunch demand (B1).
  • Location B saves £14,400/year in rent vs A but the industrial estate has limited customer flow (B1).

AO3 (up to 2 marks):

  • For a takeaway food business, revenue is footfall-driven; Location A's higher rent is justified by significantly higher daily transactions (B1).
  • Location B might suit a different format (catering supplier serving local businesses), but for walk-in sandwiches it is high-risk; A is the stronger choice despite higher rent (B1).

Total: 6 marks.

6 marks · take your time before peeking.

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Generated by TopMyGrade AI · cross-check official sources before relying on the mark-scheme phrasing.