Five Guys Burgers, GNC join Shoppes at Union Hill
Denville, N.J. Columbus, Ohio-based Stanbery Development announced that Five Guys Burgers and Fries has opened a 2,500-sq.-ft. restaurant at Stanbery’s Shoppes at Union Hill, in Denville, N.J., and General Nutrition Centers will open a 1,400-sq.-ft. store at the 92,000-sq.-ft. shopping center.
Five Guys is located next to Pier 1 Imports, with GNC’s store to be situated between Five Guys and Jos. A. Bank. When GNC opens in December, the project will be 100% leased and occupied.
Tenants at the center include Aerosoles; Banana Republic; Bensi Ristorante Italiano; Chico’s; The Children’s Place; Clarks Shoes; Gap, GapBody; J. Jill; Jos. A. Bank; Pier 1 Imports, Panera Bread; Starbucks; and Talbots.
McDonald’s to remodel 400 to 500 locations
New York City McDonald’s plans to remodel 400 to 500 McDonald’s locations across the country in 2010, Nation’s Restaurant News reported. The plan is to focus on higher-volume locations where the land is owned or the lease has significant time remaining.
At McDonald’s shareholder meeting last Thursday, chief executive Jim Skinner said the brand’s reimaging efforts would be a major initiative this year.
“Our restaurants are the heart of our business,” Skinner said. “We’re going to send a strong signal that McDonald’s is relevant. Our research tells us that reimaging benefits all [of] our brand attributes, from the quality of the food to the friendliness of the crew. We’re allocating nearly $1 billion [to the effort], and our owner-operators are contributing as well.”
The remodels are being done in partnership between corporate and franchise operators. The corporate office is contributing an estimated $150,000 to $200,000 and franchisees are covering the estimated difference of $250,000 to $500,000, depending on the design.
Franchisees have been given flexibility to customize their design within certain parameters to reflect the nuances of their communities, said Danya Proud, a McDonald’s spokeswoman.
Survey: 92% of retailers plan to increase openings
Los Angeles A survey of U.S. retailers conducted by Los Angeles-based CB Richard Ellis, the world’s biggest commercial property broker, showed that 92% are planning to increase store openings this year.
The report, “Shop Talk — A Retailer’s Perspective,” also finds that despite an improving economy, nearly all the retail executives surveyed believe that retailers will either fall or remain flat throughout the remainder of 2010.
“Our survey shows that retailers are increasingly more confident about their growth plans for 2010, and even more so for 2011,” said Anthony Buono, executive managing director of CBRE Retail Services in the Americas. “Although they remain cautious as to the overall impact of the global economy on the domestic market, most remain optimistic about their prospects for their own businesses, near- term as well as long-term.”
The findings in the report include:
- Ninety-two percent of respondents were planning to increase the number of new store openings anywhere from 5% to 200%. Of the retailers that had expansion plans, 66% of the requirements were for stores smaller than 10,000 sq. ft. Only 8% of respondents were planning on reducing the number of locations in 2010.
- Forty-eight percent of respondents think that rental rates will continue to fall in 2010, and 43% think that rental rates will remain flat. The respondents that expected rental rates to increase were mostly global or regional retailers with space requirements under 25,000 sq. ft.
- Seventy-three percent of retailers were able to negotiate tenant improvements with their landlords in the past year. Among that segment of survey responders, 65% stated that rent reductions were the most common incentive, followed by limited tenant improvements to space and the right to terminate early.
- While 70% of respondents are currently using social networks to increase branding and marketing of their products, only 38% felt that these efforts were adding value and 56% felt that it was too early to gauge the impact.
The report surveyed more than 100 retail executives across all business lines and was conducted between March and April of 2010. More than 60% of the retailers surveyed were either global or national in scope. Respondents included a cross-section of participants from various retail categories (including apparel & accessories, discount stores, restaurants, electronics & appliances and home furnishings) located in a wide range of retail property types (including regional centers, community centers and power centers).