You are the marketing analyst for Better Beans Coffee Company, which has nine stores nationwide. The company wants to build two additional stores. Your executive team has decided that rather than expand to new markets, they want Better Beans to begin opening additional stores in existing markets. While this will create cannibalization in the short term, it will create marketing and operating efficiencies as more stores are opened in each city. As a scrappy and growing startup, Better Beans does not yet have access to complex marketing analytics software. Fortunately, you are an expert at gathering market data from inside and outside the company and crunching accurate numbers with nothing more than an Excel spreadsheet.

You have been tasked with calculating the two best markets for opening an additional store. You have already calculated two things that allow you to estimate the net additional revenue in each market after adding a second store:

Revenue for a second store in each market
The revenue lost from estimated cannibalization at the first store.
Existing StoreRevenueSecond Store Revenue EstimateCannibalization EstimateRevenue Drop Due to CannibalizationNet Revenue Increase for Market (Second Store Revenue - Cannibalization)
Los Angeles $1,500,000 $1,150,000 20% $300,000 $850,000
Houston $2,800,000 $2,200,000 25% $700,000 $1,500,000
Orlando $2,050,000 $1,605,000 10% $205,000 $1,400,000
Atlanta $2,550,000 $1,797,500 45% $1,147,500 $650,000
Chicago $2,500,000 $1,700,000 30% $750,000 $950,000
San Diego $2,300,000 $1,820,000 40% $920,000 $900,000
Portland $3,100,000 $2,110,000 35% $1,085,000 $1,025,000
Dallas $2,000,000 $1,500,000 20% $400,000 $1,100,000
Boston $4,000,000 $3,025,000 10% $400,000 $2,625,000