Have you ever seen a McDonald’s turned into a liquor store? How about a Pizza Hut transformed into a China Hut?
Not Fooling Anybody, highlights how these new businesses utilize a former businesses Branded building for their own. In most instances, it may just look plain old funny to the consumer but it could be a goldmine for the business.
Reasons:
1. Location. Location. Location.
Chances are that this previous Brand name business was situated in a high traffic area which will help your foot traffic.
2. Curiosity
Locals will wonder what new business has occupied their former favorite Dunkin Donut’s location and will come to check it out.
3. Tourist Attraction?
If the building is considered a landmark of sorts, you may use it to your advantage and promote it as a tourist attraction.
Apple turned this classic Post Office into it’s NYC downtown flagship store which has turned out to be a huge success.
Being a little creative & daring when looking for a location for your business could pay huge dividends for you so explore your options before you settle for that generic space.
Hmm, hate to tell you but the Station A Post Office had closed a few years prior (late ’90’s), to become a Restoration Hardware store; 2 or 3 years later Restoration moved out (much to the chagrin of the neighborhood - we needed that kind of store); don’t know if they turned it back to the landlord or sublet to Apple
Fatbear,
Thanks for the inside scoop!
Curious to know why Restoration Hardware moved - Slow Business, High Rent?
I checked the Times’ morgue - sales failed to develop, and they were able to get out of the lease - 4/2001 (in article announcing 40% off sale on all merchandise in store.
[Note: it is a big store, and Restoration was great for the people living here, but it’s not a tourist destination store - and SoHo is nothing if not tourist destination stores now - we just lost a long-time food retailer, local-type restaurants are losing leases, and we’re all having to go to LES, Little Italy, the Village or Union Square for essentials.]
Apple assumed the last 13 years of the lease - 5/2001 - in story about Apple getting into the retail biz
Correction: Restoration says Apple has the space, but does not comment on length or other details. - ran a few days later
Fatbear,
Outstanding follow up!
Restoration is a great store but this “Location”, which is obviously a prime tourist area, did not suit them. I guess it’s sort of like having a Ski Shop on the strip in South Beach - just doesn’t fit. That’s where market research comes in. Before anyone signs a lease for a space they must do their homework. They need to understand what the foot traffic is, whether there is a need for their type of business in this particular neighborhood, what’s the competition etc…
Another comparison is what happened on west 57th street with Planet Hollywood. At first it was successful but in time, they were lacking the”Tourist” traffic which Times Square was steadilly receiving due the the areas revitalization efforts. So they had to go where their customer were.
I will follow this up with a post on the subject of How to Choose a Prime Retail Location.
Thanks again Bear for taking the time to read and comment on our real estate blog.
p.s. If you ever want to send us a hot or cool, :), story or picture about anything real estate related, we’d be happy to post it and give you credit for it.