advice on a proposal from my landlord regarding my supplement/juice bar

Discussion in 'Growing and Managing a Business' started by colione98, Oct 3, 2011.

  1. colione98

    colione98
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    hey guys

    I have been running a juice bar inside of a gym located in the entrance area. I originally paid $10k for it. I currently sell sports performance supplements as well as protein/energy shakes, gatorade, water, etc. I only pay $750 per month for rent which includes cable, water, electricity, etc...

    The gym is a private facility located inside of a plaza with decent traffic from gym members as well as those that frequent the other bays in the plaza such as the dentist office, child care, restaurant, few offices, and hair salon. Business is not too shabby but as you know, a gym juice bar essentially caters to the gym members and i have reached a peak. I can't do too much marketing because there is a stand alone sports nutrition store down the street in a plaza right next to an LA Fitness.

    The gym owners however want to liven up the juice bar and realize that since 70% of the paying/class taking clients are females, he wants to add food and turn it into a cafe style juice bar which he knows im not the guy for that move. I, on the other hand have plans to start selling sports performance apparel and footwear.

    They recently acquired another section in the plaza which they will turn into a crossfit facility. They proposed paying me out $5k for my current location and relocate me to the new bay which i will have the entrance area and be able to sell my current products, apparel, footwear, keep drink fridges, etc.. They will also provide the display units and shelving for the supplements, and gear. I will also be given 1 year worth of free rent.

    I will actually be located closer to the other offices and be able to market my apparel and footwear in which i could not market before.

    The catch is that with crossfit- it is only for certain hours and I will be alone in the bay without continuous traffic from gym members but traffic from the other offices.

    so please give me some thoughts on whether you think it is something that i can actually build on and is the move worth it.

    Thanks.
     
  2. Fergal

    Fergal
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    As you will know location is of key importance in any retail business, in fact location is very possibly the single most important factor in your success. You will have to balance what you will lose in terms of business from your current location, against what the landlord is offering you as a reward for moving. Do you know what the foot fall is like at the proposed location? Are the people passing by there, in your target market?
     
  3. colione98

    colione98
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    thanks for reply

    the foot traffic is within less than 100 feet from the main gym. traffic will mostly be from the restaurant, dentist office, salon, etc.. as for target market, members from the gym that shop at the clothing store subleasing inside the gym- has its own entrance door)

    I also have the high school 1 block away and LA fitness 3 blocks away. The nearest performance apparel or athletic footwear store like sports authority, finishline, and the mall is about 6 miles west of me.

    Since I am independent and not binded by coporate contracts, I will be able carry a mixture of exclusive urban, performance wear from all the major athletic brands- for that option, folks have to travel up to 15 miles to the closest shop.

    So there is definitely opportunity- so i suppose i just need guidance since im getting into a new area with apparel retail.
     
  4. Gary Barzel

    Gary Barzel
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    Is there a possibility for you to advertise your products in the area you are currently in? That way you can notify and send the traffic you are currently getting to your new location. If you can work out a deal with them that will include this it may be beneficial for you to have accessibility to and from both areas.
     

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