Im in a strip mall right now that has 4 businesses left and we used to have about 10 in here in the front part of the strip. We are not that visible from the street as well so in the last 2 years business decreased of course because of the economy but more because of our location now I am not thinking about moving to the other side of town I just was thinking about moving down the road to a complex that is cheaper and more visible. My landlord just increased my lease $40 and he told us that he has to do it. I talked to another landlord down the road from us that has a brand new complex but alot smaller then ours and is about $1100 cheaper a month however I am not worried about the size because we do mostly delivery and take out anyways. We are only busy inside for lunch because of the businesses around us.
What do you guys think of this idea?
How much will it cost to move everything?
You need to weigh the expense of moving (i.e. TIs, permits, downtime or double-lease while your space is built out, etc.) to the cost savings of a lower lease. If it’s going to cost you $50K to move, it’s going to take you almost 4 years to realize any savings.
As for the location, I’m sorry to hear that you’re in a dying shopping center. That’s a tough one. If you’re thinking about staying, you may need to have a serious talk with the landlord. Times are tough. I would think it would be in his best interest to lower your lease; not raise it.
Lastly, if you move into this new space, it sounds like you may lose the dining room. Will your take-out/delivery be able to absorb the lost revenue that lunch brings in?
Moving locations can be very costly as far as fitting up the new premises…So you need to do a “business plan” will show all the calculations…It might take you several years to break even on the moving costs…How much will your business grow if you move?..
But on another, subject, how come you do not have a working web-site?..Many folks will “Google” you and if they get to a non working website they will simply move on to the next pizza place…That is very bad for business…
Yes I have a website tangopizzajax.com If i move i will have a nice dining room half size of mine which would be fine for me. Its only 1/2 a mile down the road so the delivery are will be the same and its next to publix and wallgreens which will make a change because of the traffic. I thought it would not cost much because I could move everything myself. I have people that would do it with me thats what I mean. I did not mention there was a restaurant before but it failed so the spot is empty and probably $1200 less then my lease right now. As far as my landlord goes this guys sucks he doesnt want to lower it or anything and he doesnt care if i move. Im just stuck here advertising the right way but lunch business is terrible compared what it used to be.
Get while the getting is good. It is better to have the cheapest condo of the nicest building than to have the penthouse in a cheap place. This is from PC Magazines article last week:
10 Things You Won’t See After the Recession
Half of All Retail Stores
Many retail stores are obsolete and will be replaced by online competitors. Entire malls will become ghost towns. By this time next year, most video game stores, book stores and toy stores – as well as many other categories – will simply vanish. Amazon.com will grow and grow.
It might be a bit overzealous, but there is certainly a thread of truth here. If you mall is already 60% empty, it is only going to get worse.
That aside, what can you use of the existing infrastructure? Are the hoods still in place, and can you fit your ovens under them? How is the electrical and plumbing?
tango, i have gone thru it twice. the first place we were in wanted to sell the building we were in so wouldn’t renew our lease which forced us to move into a strip mall similar to the one you are in. businesses started going out of it and our rent kept going up. we began looking for a building to buy. when we found one, our mortgage was only $252 a month. of course we had to put a lot of money into the place to get it ready to be a pizza shop, but overall cost us way less per month.
each time we moved, there was no down time, so we didn’t lose sales from that. however, even though we moved about a mile away each time, there was a % of people that thought we went out of business. even though we still had the same phone #, and still delivered to the same areas. our last move was feb 2001. it was definitely worth the trouble of moving, and worth the extra work to get customers back that thought we were gone. if we would have stayed in the strip mall, we would hove been out of business long ago.