Foot traffic is not something you can estimate from a map. You have to go and count it. Here is a practical methodology for getting data you can actually build a financial model on.
Why manual counts still matter in the age of data
Data platforms give you proxies for foot traffic — daytime population, commuter density, retail spend indices. These are useful for shortlisting. But before committing to a lease, you need real counts at the times that matter for your specific business model. No dataset replaces standing on the street with a counter.
When to count: the critical time windows
For a café: 7–9am Tuesday (weekday morning peak). For a restaurant: 7–8:30pm Friday (dinner peak). For retail: 11am–1pm Saturday (weekend browsing peak). For takeaway: 12–1pm weekday (lunch peak) and 5:30–7pm (dinner rush). Conduct at least three counts at different windows before forming a conclusion.
The basic counting methodology
Stand outside the premises. Count every person who walks past in 10 minutes. Multiply by 6 for an hourly rate. Do this at your key trading windows on multiple days. Record the weather and general conditions. Average your counts to account for variation.
Traffic direction matters more than volume
Not all foot traffic past your door is equal. Traffic moving toward a train station at 8am is outbound and moving purposefully — they will not stop for 15 minutes. Traffic moving away from the station is inbound and more likely to make an impulse stop. Note the direction of travel during your counts — it changes the effective capture rate.
The direction, pace and purpose of foot traffic is as important as the volume count.
What to do with the counts
Apply a capture rate to your count. A well-run café on a typical morning commuter strip captures roughly 1.5–3% of passing foot traffic as transactions. A retail store with strong window display captures 0.5–2% of passing traffic as walk-ins. These rates vary significantly with business type, visibility and signage quality.
Step-by-step foot traffic analysis
- 1
Identify 3 time windows relevant to your business model
- 2
Conduct manual counts on a weekday and a weekend
- 3
Note direction, pace and apparent purpose of traffic
- 4
Apply a realistic capture rate for your business type
- 5
Build a daily transaction estimate and test against your financial model
- 6
Cross-check with a data analysis tool for supporting evidence
Using data tools to supplement manual counts
Tools like Locatalyze provide estimated daytime population, worker density and commuter flow data for any Australian address. These complement your manual counts — giving you context for whether your observed traffic is typical or atypical, and how the area compares to similar locations.
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