With the advancement of generative AI, it's tempting to ask questions such as:

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“What is the best neighborhood in Curitiba to open a coffee shop?”

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Your AI answers something like:

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“Neighborhoods like Batel and Água Verde are excellent for coffee shops. They combine high purchasing power, the presence of young professionals and a vibrant gastronomic scene, perfect for businesses like yours.”

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Sounds good, doesn't it?

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But there's one problem:

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That kind of response It is generic and does not consider your business model, nor the actual data of the street where you intend to open.

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Let's see other examples of common generative AI errors in expansion:

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“What are the best neighborhoods in São Paulo to open an affordable women's clothing store?”

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AI response:

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“Neighborhoods like Jardins, Moema and Itaim Bibi have a demanding audience, with a strong interest in fashion and consumption. They are good options for women's clothing stores.”

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Because it seems smart:

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He talks about upscale neighborhoods, mentions consumer audiences and fashion consumption.

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What's wrong:

• These neighborhoods are expensive for rentals and saturated with brands
• The public can search there Luxury fashion, not “accessible”
• THE IA Did you confuse social class with fit in brand positioning
• It did not consider real data such as competition, pedestrian flow, and compatible income by category

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“I want to open a gym franchise. What is the ideal city in the interior of São Paulo?”

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AI response:

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“Cities like Campinas, São José dos Campos and Ribeirão Preto have a large population, good quality of life and concern for health, are great for gyms.”

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What's wrong:

• Any Wikipedia answers that
• There is no data on local competition (sometimes there are already 20 different network academies)
• There is no analysis of population density by neighborhood
• And no estimate of How many units can fit in the city without cannibalizing or saturating the market

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“Simulate a plan to expand a vegan food franchise to southern Brazil.”

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AI response:

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“The Southern region has increased interest in healthy eating, especially in cities such as Curitiba, Florianópolis and Porto Alegre. It is recommended to open units in neighborhoods with university students and young professionals.”

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What's wrong:

• It doesn't mention the number of people with vegan food in each city
• Ignore seasonality (in Floripa, many neighborhoods 'turn off' outside of summer)
• And you don't know if Affordable vegan buying power does it really exist in the suggested areas

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How to do it the right way?

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Generative AI is great for generating hypotheses, drafting reports, writing briefings, and even preparing presentations for investors.

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She can tell you what feels good, while only Geomarketing will show you what is feasible.

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At Mapfry you analyze:

• Population density within 500 m
• Daily pedestrian flow
• Competition by category (coffee shops, gourmet bakeries)
• Average income by census sector
• Consumption potential in food outside the home
• And it compares your monthly billing based on similar stores.

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