Would it be a good idea to set up a restaurant next to a L Brands store? That is the question posed to me last week by my friend, who runs a chain of restaurants in our city. Apparently, the building adjacent to the local L Brands store has fallen vacant, and he is considering leasing it and setting up a restaurant there.
In my view, setting up a restaurant next to a L Brands store is a brilliant idea, and I told him as much. I then proceeded to give him some 3 reasons as to why, in my view, it would be good for him go ahead and set up the restaurant next to the L Brands store.
Firstly, L Brands stores tend to be located in places where there is good flow of traffic. Some of the people coming to shop at L Brands may want to dine after shopping – and that could translate into a solid customer base.
Secondly, the people who frequent L Brands stores tend to be individuals who are financially well-heeled. So these are the sorts of individuals with the purchasing power necessary to keep a restaurant running. Like, for instance, if someone ventured into the L Brands store with a view to buy clothes worth $200, but ended up spending $170, they may not mind spending the $30 they’d have ‘saved’ in a restaurant — if they happen to ‘bump’ into one close by.
Thirdly, the L Brands stores tend to employ considerable numbers of people. Those are people who can be the restaurant’s customers. Like if the L Brands store happens to have 100 employees, and you manage to convert just half of them into regular customers, that would translate into 50 regular customers to start with. Some of them may admittedly be frugal spenders, based on the paychecks they get through the aces hr portal. Nonetheless, the little they spend on a regular basis can eventually add up to a considerable amount of money in the long run.