Identifying a good business location using prescriptive analytics: Restaurant location recommendation based on spatial data mining

Abstract

This study proposes a new prescriptive analytics method that aims to provide decision-makers with a systematic and objective approach to identify suitable locations, considering the spatial distribution of different types of restaurants. The method comprises of two main components: spatial co-location pattern mining and locationGCN, where locationGCN is based on graph convolutional network (GCN). The spatial co-location pattern mining is utilized to capture the spatial correlation of specific restaurant to determine the candidate location selection range. The locationGCN is designed to further screen out final suitable location ranges for the specific restaurant type. A case study using restaurant data from Xiamen Island collected from Dianping.com is conducted. The empirical results demonstrate that the algorithm achieves an accuracy of 74.88%, precision of 63.59%, and recall of 77.48%. Results indicate that the proposed approach can provide suitable location recommendations for specific types of restaurants based on existing restaurant distribution information.