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Running a Restaurant/2 Restaurants 1 Mall: Good Idea?

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Question
So I am trying to open a Pizzeria in a strip-mall where another restaurant exists. The owner of the other restaurant, which is a small sandwich shop that ins't thriving alone, believes that I would take away from his already slowing business. From my experience, having multiple restaurants in the same mall can actually be helpful.  

I already own a Pizzeria in a different part of town and I have 3 other restaurants in the same mall. Granted none of the restaurants are the same as mine. One is a Chinese restaurant, one is a bakery and the other is a breakfast restaurant. But the mall has become a place widely known to go to for food.

I was asked to provide some articles or evidence that multiple restaurants can be beneficial to all parties. But after combing the web, I can't find any! So am I just in a strange reality or am I right?

To sum it up, is it true or false that multiple restaurants can actually help drive in customers.

Answer
Hello Eric, Thanks for the question.

My answer might not be what you looking for – because the answer is - it depends. There are many examples of brands who “co-branded” in the belief that they would drive traffic by appealing to a broader slice of the marketplace and found that the results underwhelmed their expectations. There are many “malls” that brought in a new restaurant tenant with the expectation that they would drive traffic to the mall and were not satisfied by the results. And, of course, the opposite of the above has also been the case. Demographics, timing, location, value, crave’oliciousness, operational excellence and luck – are all factors that will/can influence results.

In a situation like you describe – I’d most certainly want to decide if my concept was (to the best of my estimation) the “shark” or the “pilot fish” – a shark finds food to survive no matter what (a concept that drives traffic - rain or shine) or a pilot fish who lives off the shark & feeds off the left-overs (the mall, movie theater, concert hall, town center, sports arena, tourist attraction, etc.) I’m not sure that two sharks or two pilot fish will coexist in a fashion profitable enough to justify the effort.

You are there & I am here – it will be up to you to decide all the mitigating factors.

Best of luck – C

This might be of help - http://amozn.to/guebkx

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Chase LeBlanc

Expertise

I am the author of the new book, HIGH IMPACT HOSPITALITY: Upgrade Your Purpose, Performance and Profits!http://amzn.to/guebkx I am also the founder and CEO of Leadagers LLC http://leadagers.com/ (leaders who manage, managers who lead, "leed/i/jers") a hospitality industry consultancy. Our primary focus is in upgrading the purpose, performance and profits of restaurants, bars, food & beverage outlets and/or nightclubs. We have expertise in operations, start-ups, training, in-house leadership development and positive customer service experiences. 720.269.9537

Experience

My 30+ year hospitality career started as owner/operator of a nightclub development and management company. After successfully selling that business, I led within a variety of national and global operations as General Manager and multi-unit Regional Manager and I have also served corporations as Vice President and President. My extremely broad range of experiences includes leading training stores, entertainment complexes, fine dining establishments, high-volume theme restaurants, quick-service restaurants, dance/night clubs, comedy clubs, college taverns, dueling piano bars, pizzerias, high-volume sport’s bars, live music showrooms, retail stores and gift shops, fast-food concessions, catering/banquet facilities and high-volume arcades.

Publications
"Staffing Doctor" columnist for Hotel F&B Magazine http://www.hotelfandb.com/blog/?p=819#more-819 Top 10 - FastCasual.com http://www.fastcasual.com/article/140233/Top-10-ways-to-motivate-your-managers Core Hospitality - Quick Serve Leader - http://quickserveleader.com/article/making-hospitality-core-your-restaurant-brand-expert-corner Wise Words - Inside F&B http://insidefandb.com/2012/01/wise-words/ And have been a featured blogger for FohBoh.com In addition to my new book High Impact Hospitality,http://amzn.to/guebkx I have been a contributing writer for and/or my properties have been featured in Cheers, F&B, Food Service News, Hot Spots America, Military Club & Hospitality, Nation’s Restaurant News, Night Club & Bar and Top Shelf.

Education/Credentials
Attended the University of Colorado for three years and left to open my first nightclub at the age of 21.

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