Monday, August 19, 2019

The Rise of Virtual Restaurants?

Restaurateurs are adding "virtual" restaurants to expand their delivery options - and most of us have no idea we're ordering from restaurants that don't actually exist! 

An August 14, 2019 New York Times article by Mike Isaac & David Yaffe-Bellany looked at the ways in which the new delivery apps like Uber Eats are changing the face of retail dining.























SAN FRANCISCO - At 9:30 on most weeknights, Ricky Lopez, the head chef and owner of Top Round Roast Beef in San Francisco, stacks up dozens of hot beef sandwiches and sides of curly fries to serve hungry diners. He also breads chicken cutlets for another of his restaurants, Red Ribbon Fried Chicken. He flips beef patties on the grill for a third, TR Burgers and Wings. And he mixes frozen custard for a dessert shop he runs, Ice Cream Custard.

Of Mr. Lopez’s four operations, three are “virtual restaurants” with no physical storefronts, tables or chairs. They exist only inside a mobile app, Uber Eats, the on-demand meal delivery service owned by Uber.

“Delivery used to be maybe a quarter of my business,” Mr. Lopez, 26, said from behind Top Round’s counter, as his staff assembled roast beef and chicken sandwiches and placed them in white paper bags for Uber Eats drivers to deliver. “Now it’s about 75 percent of it.”

Food delivery apps like Uber Eats, DoorDash and Grubhub are starting to reshape the $863 billion American restaurant industry. As more people order food to eat at home, and as delivery becomes faster and more convenient, the apps are changing the very essence of what it means to operate a restaurant.

No longer must restaurateurs rent space for a dining room. All they need is a kitchen — or even just part of one. Then they can hang a shingle inside a meal-delivery app and market their food to the app’s customers, without the hassle and expense of hiring waiters or paying for furniture and tablecloths. Diners who order from the apps may have no idea that the restaurant doesn’t physically exist.

To read the complete article, click here...

Friday, August 2, 2019

Which way NOW?

Future Detours Ahead For Retail Customer Journeys

Forbes.com
Nikki Baird


























This Forbes article discusses the trends, behaviors and even disruptive technologies that can impact what the shopper seeks from her customer journey.  It reports on those things that customers expect from the retailers with whom they engage, how much things have already changed with regard to customer expectations and just how hard it has sometimes been for retailers to keep up with those expectations.

So what’s next for those customer journeys and the expectations that retailers may have to match? The article goes on to discuss the three big disruptions that appear to loom on the horizon.


Consumer-Driven Disruption: Time   


Consumers have less time to shop. This is a global phenomenon, driven by three main time pressures. One, there are more women in the workforce, which generally means they have less time available to handle “domestic” tasks like grocery or family clothes shopping. No matter how much it would be great if households had an equitable distribution of tasks, the reality is, when women work, there isn’t really a commensurate increase in other household members’ time spent shopping, at least according to US consumer time studies.

Click here to read more....

Tuesday, July 2, 2019

The Next Frontier Of Wellness: Your Pets



Forbes.com, June 18 2019
Serena Oppenheim, Contributor

With a fast-growing awareness about nutrition and our own health, it is not surprising that the next wave of wellness companies are not focused on humans, but on pets.

In terms of money spent on pets, the U.S. is by far the world leader with the U.K. a distant second. According to a recent Mintel Report, 95% of US pet owners consider their animals to be part of their family and nearly half of pet "parents" are as concerned about the health and wellbeing of their pet as they are a member of their human family (backed up by the fact that 44% of millennials see pets as their "starter children").

However, similar to the obesity epidemic among humans, 56% of dogs are estimated to be overweight or obese in the U.S. There has been a 911% increase in diabetes in cats and dogs since 2011. In addition, cancer is the leading cause of death in dogs - 1 in 3 dogs will develop cancer, which is the same incidence of cancer among men.

The pet industry in the U.S. as a whole is estimated to be worth $72 billion and 2018 figures suggest that $29.88 billion of that comes directly from pet food. Unlike with human food, however, the pet food industry is highly unregulated. Every year sees dozens of recalls. To date in 2019 there have been seven public pet food recalls and in 2018 there were nearly 50. Reasons have ranged from salmonella to euthanasia drugs being found even in some major pet food brands. In addition, many people don’t realize that some brands of pet food can actually be made up of animals who are diseased, dying, disabled, or dead.

To read more about this topic, click here....

Thursday, May 30, 2019

The Fastest-Growing Job Sector?

Cannabis, Marijuana, Weed, Pot? Just Call It a Job Machine




The New York Times, Conor Dougherty
April 25, 2019

While cannabis may still be illegal on the federal level, 33 states now allow its sale for medical purposes at a minimum. Ten of those states, including California, have legalized recreational use. And as new markets open and capital continues to flood in, the cannabis industry has become, by some measures, one of the country’s fastest-growing job sectors.

A few years ago, navigating the marijuana industry felt like a journey to the fringes of legitimacy. Now cannabis dispensaries occupy brightly lit spaces on prime retail strips, with $80 pot lotions and $20 bars of pot soap. Six months ago, Canada became the first major world economy to legalize recreational marijuana use, and several dozen cannabis stocks — many for companies that are American in all but name but unable to list in the United States — now trade on the Canadian Securities Exchange.  For investors, it’s a two-pronged thesis. The first is that many people like recreational use. The second is that as cannabis becomes more widely used, it is increasingly a therapeutic remedy that people substitute for pain pills, sleep aids and other pharmaceuticals.

ZipRecruiter's data suggests that cannabis-related jobs nationwide currently stands at 200,000 to 300,000. While many of those jobs are on the lower end of the pay scale (consisting of rote agricultural work), there has also been a expansion in the demand for better-paid positions like chemists, software engineers, and nurses who consult with patients about using cannabis for anxiety and other medical conditions.

Meanwhile, the pioneers who brought the industry out of the shadows are being joined by professional managers and executives — “talent,” in corporate speak — who have had careers in other industries. For upper-level managers and executives, companies say they prefer candidates with a background in highly regulated industries like alcohol or pharmaceuticals.

To read more, click here...

Friday, May 10, 2019

The Retail Brokers Network

What is the Retail Brokers Network (RBN) and why did Equity Retail Brokers join?


The RBN is a national networking group founded in 1992 whose members are like us - successful independent brokerage firms that specialize in retail real estate. Upon joining in 2001, we wanted the ability to refer business nationally, while taking advantage of the shared booths at regional and national ICSC events. However, the greatest benefit has been the personal friendships we have formed and the positive affect they have had - and continue to have - on us as individuals and the company as a whole.


What value does Equity Retail Brokers get from membership in the RBN? 

Having brokers across the country that we "Know, Like and Trust" (that's the RBN motto!) gives us the ability to help our clients with their real estate needs locally and nationally. We get valuable market knowledge and expertise through relationships, regional and national RBN meetings, and monthly RBN calls on a variety of relevant real estate topics. The referrals we get from (and give to) RBN firms is a great value as well, of course.

What value do our clients get from our membership in the RBN? 

We use the information we gain from our involvement in the network to help our clients get deals done locally and nationally. Through access to people and information, the RBN provides us with expertise we otherwise wouldn't have, and allows us to make referrals to RBN firms in other markets, when needed. The end result is more problems solved and deals for our clients.

What do you like best about the RBN? 

I am in regular contact with like-minded real estate professionals around the country who I know, like and trust. We talk about real estate, our families and everything in between. I don't think I can count the quality friendships I enjoy as a result of the RBN. Oh, and we often make money together. How great is that?


Click here to learn more about the RBN, or stop by booth C-111 Union Street at ICSC RECon!

Friday, April 26, 2019

Best Retail Sales Since 2017

The Best Retail Sales Since 2017 Brighten US Growth Outlook

With first-quarter gross domestic product figures due April 26, the surprisingly strong retail report spurred economists to further increase projections.

www.Globest.com   
By Reade Pickert | April 19, 2019

Photo by Bloomberg

(Bloomberg) Retail sales in the U.S. jumped by the most since September 2017 and first-time filings for unemployment benefits dropped to a fresh 49-year low, as a strong labor market gives American consumers the wherewithal to keep the economy chugging along.

The value of overall sales in March rose 1.6 percent, boosted by gains in motor vehicles and gasoline stations, after an unrevised 0.2 percent decrease the prior month, according to Commerce Department figures released Thursday. That exceeded all forecasts in Bloomberg’s survey calling for a 1 percent gain.

A Labor Department report released at the same time showed initial jobless claims fell last week to 192,000, the lowest since September 1969. Economists had projected an increase.

“The labor market is alive and well,” said Stephen Stanley, chief economist at Amherst Pierpont Securities LLC. Income gains support consumer spending and “as long as the labor market is doing well there is good reason to expect consumer spending should do fine.”

With first-quarter gross domestic product figures due April 26, the surprisingly strong retail report spurred economists to further increase projections. Analysts raised economic growth forecasts for the period Wednesday after a report showing the trade deficit unexpectedly narrowed in February. The economy had showed signs of slowing heading into 2019, before the U.S. central bank put rate hikes on indefinite hold and a government shutdown clouded the outlook.

(To read the rest of the article, go to www.globest.com:  Link to Full Article )

Thursday, April 11, 2019

The Outlandish Story Of Ollie’s

A $5 Billion Retail Empire That Sells Nothing Online (But Is Beating Amazon)


Abram Brown, Forbes Magazine                                                                                                            Photo by Harry Fellows
April 1, 2019

Ollie’s is very possibly the only company in America whose brick-and-mortar stores are not just surviving but thriving. It focuses exclusively on traditional retailing, selling not a thing online. Read that again: nothing sold online.

Nonetheless, Ollie’s sales have doubled in four years. It moves more than $1 billion a year of low-priced goods from its large (30,000 square feet or so), no-frills stores like the one in Sterling. Profits are at a high, nearly $130 million.

Abram Brown's article in this month's Forbes Magazine retails the success story that is Ollie's, in an era when retailers are retrenching and retooling their market strategies. Retail companies announced 3,400 store closures last year, with plans to shutter a record 155 million square feet of shops. Those numbers will skyrocket in 2019: Retailers announced 4,300 store closures in just the first nine weeks of the year.

As Abram's points out, Ollie’s is the exception to the rule. Not only is it opening new locations, shares in Ollie’s have quintupled since its IPO in 2015. And every Ollie’s store has been profitable within a year of opening.

To read more about how Ollie's is thriving in today's competitive marketplace, click here to read the full article...





Tuesday, March 5, 2019

Outdoor Communal Retail Spaces Are Getting Smaller

Communal and outdoor living spaces at retail centers are transitioning from big and flashy to a series of scaled-down living rooms.

GlobeSt.com, By Kelsi Maree Borland | February 26, 2019 at 04:00 AM

Outdoor communal spaces at retail centers are getting smaller. Open gathering spaces have become a standard at retail centers, but they started as large, flashy spaces with programming. Now, retail owners are opting to create a series of smaller living rooms with amenities like WIFI. Most importantly, these living room-style spaces are well designed and could be a key component to attracting locals, increasing foot traffic and competing with online outlets.

“Everything we hear is about brick and mortar competing with online sales. With this in mind, a key component, a key differentiator from an online commodity driven retail experience, is simply treating the guest experience as the anchor,” Greg Lyon owner, principal and design director at Nadel Architects, tells GlobeSt.com. “In other words, the environment that a development provides for its guests and shoppers is the anchor. People will always gravitate towards a well amenitized ‘outdoor living room’ where they can hang out and socialize, and that is what will always set brick and mortar apart from the online experience.”


The Year of the Fry

French Fries Get A Makeover As Restaurant Competition Heats Up

Forbes.com, Alicia Kelso

























Is it too early to declare this the Year of the Fry?


Think about it. McDonald’s just launched limited-time cheesy bacon fries, no doubt targeting Wendy’s Baconator Fries (which, to be fair, have been around for nearly four years). Wendy’s responded to the launch by putting its version in the promotional spotlight – free Baconator Fries to anyone who ordered through the brand’s mobile app – inciting a bacon fry battle of sorts to start the New Year.

French fries have long been a quick-service staple, as well as the subject of intense debate over which brand does them best. However, a case can be made that recent launches have been different. Sexier.

Consider Taco Bell’s Nacho Fries, for example. First introduced in January 2018, the Nacho Fries quickly became the brand’s most successful product launch ever – more than 53 million orders were sold in the product’s first three months alone. The fries made up more than 30% of all Taco Bell orders, yielding both check and transaction increases.

So successful was this product launch, Taco Bell has already brought it back twice as a limited-time offer. Nacho Fries were inarguably a major factor in the chain’s strong 2018 performance.

Friday, February 8, 2019

Retail Going to the Dogs?

I have the pleasure of working with two Mars affiliated companies, Blue Pearl Animal Hospital and Banfied Pet Hospital. This article mentions yet another affiliated company, Camp Bow Wow and I thought it was of real interest. These businesses are helping to change the face of retail real estate.

Two Pet Daycare Franchises Battle for Market Dominance - Who Will be Top Dog?


JANUARY 16, 2019 | RICHARD LAWSON


Finding a location can sometimes be...ruff.                                      Photo credit: Dogtopia

Competition in the pet daycare and boarding business is turning into a real dog fight as the leading franchises race to drive expansion.

Dogtopia, based in Phoenix, announced plans to open 50 locations this year to build on the more than 90 it has in the U.S. and Canada. That’s double the number that opened last year. The company said it sold 100 spots last year and more than 30 units so far this month. In all, Dogtopia has more than 200 locations in development and has aggressive plans to grow to more than 400 stores.

“There really aren’t areas we aren’t looking, but a few current hot spots are Seattle, Connecticut, Atlanta, and our backyard, Phoenix,” said Jesse Stiles, Dogtopia’s vice president of real estate. “I have active franchisees looking in 30 plus states.”

Meanwhile, its biggest competitor and market leader, Camp Bow Wow based in Westminster, Colorado, has its own expansion plans for the year. It added 20 locations last year to finish with 165. “The pipeline is enough to achieve 20 this year,” said Jay, Mihulka, Camp Bow Wow’s vice president of real estate.

Each has firepower behind them. Dogtopia, founded in 2002, initially partnered with Phoenix investment firm Thomas Franchising Solutions in 2012 to fuel expansion. But Peter Thomas, who started the firm and once owned all of the Century 21 Real Estate franchises in Canada, later bought all of Dogtopia to put the franchise on a faster growth track.

Camp Bow Wow opened its first store in 2000 and was acquired in 2014 by VCA Inc., a company that has 750 animal hospitals around the U.S. and Canada. Mars Inc., home of M&Ms and Snickers as well as major pet food brands, bought VCA three years later.

Who has the competitive edge? Based on Entrepreneur magazine’s annual Franchise 500 for 2019, Camp  Bow Wow has slight lead, ranked No. 193 to Dogtopia’s No. 204. The ranking considers brand strength, costs, size, growth and support for franchisees and franchisor financials. But in 2017, Franchise Times chose Dogtopia for its Zor Awards, recognizing top franchises to own, over finalists that included Camp Bow Wow.

Both franchises offer similar services -- grooming, daycare, boarding and indoor and outdoor exercise. Both allow dog owners to view their furry children via webcams. But they differ on décor. Camp Bow Wow has more of a rustic look in its stores with lots of wood. Dogtopia leans toward contemporary and bright colors. Its locations, which average 4,000-6,000 square feet, tend be smaller than Camp Bow Wow. At a result, total investment to open a Dogtopia is lower, $606,545-$1,321,245 compared to Camp Bow Wow’s stated estimate of $783,500-$1,485,000.

On the real estate side, though, the playing field is basically level. Local zoning requirements have tended to preclude these franchises from locating in shopping centers or urban areas. They end up at the city edges, often in light industrial areas amid small manufacturing spaces or warehouse users.

That’s changing some. “With the changing retail landscape and the demand lessening for soft goods tenants, service-related businesses that take up larger spaces are more attractive to landlords than they’ve ever been,” he said. “We’ve shown that with our aesthetics, smell and sound attenuation, and clean branding, that we can not only compliment a high-end tenant mix, but even improve a second-generation retail center and be a feature tenant.”

Both concepts typically need “special-use” or “conditional-use” permits through local zoning organizations in order to open. Stiles said that’s “mainly because most zoning codes are slightly antiquated and give a blanket classification of any business like ours as a kennel.”

To help franchisees with their pitch to local governments, Dogtopia shows off a location in a shopping center anchored by a Sprouts Farmers Market in Oro Valley, Arizona, a suburb north of Tucson. Camp Bow Wow has opened in retail centers in Las Vegas and Plano, Texas. “Retail works for us if we can get into them,” Mihulka said. “It’s an education and sales process” generally to show landlords the steps taken to sound proof the space and keep impact to neighbors to a minimum.

Mihulka said one of the challenges has been finding available space anywhere because vacancy in buildings has dropped so much. “Inventory is extremely low,” he said. Some Camp Bow Wow franchisees have changed course by buying a parcel to build a freestanding location, which adds to construction costs and lengthens the time it takes to open a location. But for the franchisee, owning the real estate provides a long-term real estate investment along with the business.

Monday, January 7, 2019

The Winners in Retail, 2018

Walmart isn't the only retailer already winning...

By Lauren Thomas, CNBC

In any competition, there are winners and losers. And among retailers competing for customers, the winners of 2018 beat their rivals by providing faster delivery, better online and mobile shopping options, and the trendiest products.

Those who failed or were slow to adapt? Bon-Ton, Sears, Mattress Firm and David's Bridal were among the slew of retailers that filed for bankruptcy in 2018. Toys R Us also closed all of its stores after filing for bankruptcy near the end of 2017.

But that doesn't mean consumers weren't whipping out their wallets and filling their shopping carts ahead of the new year. Many headed in throngs to off-price retailers like T.J. Maxx and big-box chains like Walmart. Here's a better look at some of the winners in retail to round out 2018.

To read the article in full, click here...