Hello,
I trying to nail down my location. I had looked at a property in a very robust shopping center. The center had several large anchors and is very diverse, I had pretty much settled on this location. I had an opportunity to look at another local about 1/2 mile down the street in a strip mall. It is about the same size but a 1/4 of the price. Along the main street this has full frontage the other local was located within the center (both are located off of the same main street). I am working with a friend who has operated several successful restaurants in the area. He really likes the 2nd location at the price and believes with the right marketing we can make it a go to spot ( provided it deliverers on what we are promoting)…He thinks with so much less in rent it will allow for more money for advertising. Any thoughts out there…
I have had locations in high traffic areas and low traffic areas and I am of the opinion the low traffic offers the best opportunity if you want to focus on delivery business…With the savings in rent you can buy lots of marketing…So I agree with your partner…But it sounds like the cheaper location is not really a low traffic location…Sounds more like the landlord is a little more anxious…Good luck…
Royster,
You are correct the demos are the same for both spots…they are in walking distance of each other. One happens to be in a large retail center the other a small retail center…I think the landlords are at opposite ends of the market…One is higher than anyone else and one is lower than anyone else…There may be some flexibility with the higher one…but not to cut from 4 times the price…Also being on the front of the busy street might add some extra value…
You need to run a proforma based on the assumptions for each location. If the mall location would bring you 300-400-500 per day in walk up slice sales that you will not get a block away, how does that change your business plan? What does the rent look like then?
Mall customers are not going to walk that block. You have to get them back in the car and then stopped again.
For pure delivery, go with low rent. For a mixed model you have to take a close look at the assumptions about existing foot traffic vs attracting traffic with marketing.
Good idea Thank you…how ever…I am not sure how I could get numbers that would give me reliable data…the center is not a mall just a larger retail shopping center…that has banks, drug stores, coffee houses…gyms…many fast food locations all within the same center but I think most would still drive from one to place to another…as they move around the center…its all most like strip malls within a very large parking lot…the lower priced center is a strip mall with 5 other busniess…I do think I could a small slice business there it would be centered around lunch in the same way the larger center would be…