Western Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Western United States.
Issue link: https://westernrealestatebusiness.epubxp.com/i/566807
www.REBusinessOnline.com Western Real Estate Business • September 2015 • 31 self as the brand for people who choose a life that embraces relaxed and robust living," says Rob Goldberg, executive vice president of the retailer's res- taurants. "'Flavors of Aloha' inspires these same sentiments, stirring fanta- sies of an endless vacation and giving readers the opportunity to taste a bit of the good life." Branding "the good life" across its retail and restaurant platforms is probably a good idea, according to Moore. It widens Tommy Bahama's consumer base, giving diners access to the merchandise, and shoppers the ability to enjoy a good meal inside a store they already know they enjoy. "There are benefts from the 'cool factor' that may exist with the fashion brand, which could positively impact the on-site restaurant," he says. "The restaurant can increase visibility and access to potentially new customers. This can bring in additional trafc, which should lead to cross-sales. It also appeals to multiple shopping de- mographics." Cooking With Gas Though in-store dining has been successful for several retailers in Cali- fornia, Wong notes it's not easy for a traditional clothing store to simply in- tegrate a foreign component like food and beverage. At least not if they're trying to do it well. "Apparel retailers are not restaura- teurs and they must be cognizant of the fact that food is not their exper- tise," he says. "These retailers need to be certain that any food or bever- age element added to their retail store matches the quality of their brand." Other considerations to keep in mind is the additional parking re- quirements, permits, costs of build- out and operations, and the projected sales per square foot for the retail por- tion of the store, versus the restaurant portion. "We advise our retail partners that they need to determine if this food/ beverage service is going to be a rev- enue generator or simply an added service for their customers to enjoy," Wong says. "If the service's primary function is not to generate profts, then the retailer needs to be sure the extra sales it generates in the retail store are worth the money spent to supply the service." Skrbin also notes the utilities re- quired for a restaurant generally surpass what's needed for a strictly retail establishment. Grease inter- ceptors and hoods are also essential for most kitchens, which will require conversations between the landlord and tenant, including who will incur these costs. Other tenants can also be an issue. "A retailer restaurant creates a more relaxed atmosphere, which places shoppers in a more positive mood for spending," Moore says. "Of course, this can have an impact on exclu- sives and co-tenancy, which could make leasing more challenging due to the overlapping uses. The chal- lenge comes in selecting concepts that resonate with the target audience, that don't confict with existing tenants, and where the food and beverage op- erations don't negatively impact the shopping experience." When this is all done right, the full shopping and dining experience comes together. "Retailers who have incorporated the retail-restaurant model have seen a signifcant increase in their gross sales," Tomb says. "These concepts can allow retailers to beneft from profts lost to online sales. The main objective is to reinvent the shopping experience to keep attracting custom- ers to the bricks-and-mortar loca- tions." Wong, for one, wouldn't mind see- ing this trend continue. "While it can depend on the de- partment store and its location, over- all, tenants with a food and beverage component are very attractive to us," he says. "Simply put, these retail- ers often have strong sales and drive excellent foot trafc to the shopping mall or retail center itself. Retail- ers with food and beverage com- ponents can often be a destination for shoppers in and of themselves." We'll drink to that. n BBGRES.COM B B G I S B I G ( I N T O C U S T O M E R S E R V I C E ) Yes, we're growing. But as we expand from coast to coast, we add top performers to our team who continue to provide responsive service and expert appraisals. Clients can count on prompt, personal attention through a single point of contact and appraisal reports tailored to client-specific requirements. No matter our size, BBG remains committed as ever to client satisfaction. CALL BBG TODAY TO LEARN WHAT WE CAN DO FOR YOU. + 8 77-524-1 1 87 VALUATION + ADVISORY + ASSESSMENT