A well vetted market plan should identify all potential non-traditional development opportunities within a target market for expansion. Some of these venues have high barriers to entry such as abnormal rent rates, enormous triple net fees (CAM – Property Taxes – Property Insurance), percentage rents, limited hours of operation, no exclusivity, profit sharing, specified ownership/management hierarchy’s, etc., etc., etc.…
Many of these type facilities are managed by a professional food service management company which limits your brand’s ability to lease space. Typical workarounds to these type of deals include JV partnerships with the food service management company or license/franchise your brand to the company. There are pluses and minuses or pro and cons to all of these alternatives.
Non-traditional development is an excellent way to span your brand across many venues with little risk while simultaneously marketing yourself to thousands of captive consumers with discretionary income. Unfortunately this type of market penetration requires some flexibility, which many only see as compromise. If executed properly thorough the right partnerships, non-traditional development can become a game changer for an emerging brand. Just ask any 20 year veteran at Starbucks Coffee how the company grew so fast with so little money and effort spent on marketing and advertising.
Our market plans not only identify non-traditional development opportunities, we show you how to properly evaluate them for consideration. These site opportunities should be vetted with extreme due diligence along with modified proformas and unique business model adjustments performed only by professionals with experience in these type venues.
For more information on our unique market planning methodologies, or to find out more about non-traditional development through comp analysis, please do not hesitate to call us direct anytime or shoot us an e-mail with your questions and we will be sure to promptly respond.