Weekly Perl: A Commercial Real Estate News Recap
Target to open 300 stores over next decade
Target Corp. reported fourth-quarter sales and earnings above Street expectations amid lower markdowns and improved in-stocks, but warned of sluggish sales for the current year. Separately, the retailer said it will launch a paid membership program, called Target Circle 360, in April. The program, announced at Target's investor day, will include unlimited free same-day delivery for orders over $35 in as little as one hour and two free-day shipping, along with other perks.
Regional Dutch Bros Coffee Chain Brews Up National Expansion
When Dutch Bros debuted its first coffee shop last month in California's Orange County, throngs of people were waiting. Some had arrived the night before, and others traveled from as far as Arizona for the grand opening that morning. The line to get served "stretched for more than a mile," Christine Barone, the chain's CEO, said during the company's call to discuss its fourth-quarter earnings.
Founders Table Forges Growth Plan for Collection of Premium Fast Casuals
Founders Table Restaurant Group comprises concepts created by operators who never let go of their curiosity. Chopt cofounders Tony Shure and Colin McCabe wondered why salad couldn’t be a side dish. Brothers Liam and Oliver Kremer wanted to know why they couldn’t find a decent mission-style burrito in New York, which led to Dos Toros. FIELDTRIP founder and James Beard Award-winning chef JJ Johnson had a vision to bring healthy rice bowls to Harlem when no one else did.
Foot Locker in Q4 loss; to unveil store of the future, revamp existing stores
Foot Locker ended its fiscal year on a slightly downbeat note, reporting a loss for the fourth quarter and issuing weak guidance. Despite the loss, the athletic shoe and apparel retailer still beat analysts’ expectations. But it warned that it would not meet the profitability goal — to reach an EBIT margin of 8.5% to 9% by 2028 — it disclosed at its March 2023 Investor Day on time
Ross Stores to open 90 new stores in 2024
Ross Stores easily topped expectations for its fourth quarter, but warned that housing, food and gasoline costs continue to put pressure on its customers. In a statement, CEO Barbara Rentler cited the “sustained” sales momentum that began in its second quarter and continued through the holiday season, but cautioned there remains “ongoing uncertainty in the macroeconomic and geopolitical environments.”
McAlister’s Cracks $1 Billion, but Best is Yet to Come
For the first time in company history, McAlister’s surpassed $1 billion in sales in 2023, fulfilling a prediction the chain tracked for a few years now. It’s a big number, but chief brand officer Mike Freeman says the accomplishment boils down to a handful of key pillars. The first is decision-making and leading with the guest experience. The second is legacy franchise ownership and brand leadership working harmoniously to drive the company forward.
Roots Chicken Shak Unveils a Unique Path to Expanding Beyond Food Halls
Tom Foley typically doesn’t eat fried food. Yet, during a menu tasting for chef Tiffany Derry’s duck-fat fried chicken concept Roots Chicken Shak, Foley took one bite of the Big Bird sandwich, “and I didn’t stop. I finished it,” he recalls. “And then Tiffany comes out with a Spicy Bird, the spicy version of it. I took a bite and finished it. At one point she looks at me, because we still have chicken wings and tenders to go through, and Tiffany goes, ‘you know this is a tasting, right?’ I’m not so sure if that’s how you’re supposed to have a tasting.”
Whole Foods to roll out small-format store concept — here’s what it will look like
Whole Foods Market is going small with a new concept for dense metro areas.The natural and organic foods grocer is launching a “quick-shop” store format that’s designed to provide customers in urban neighborhoods a quick and convenient shopping experience. Dubbed “Whole Foods Market Daily Shop,” the stores will range between 7,000 sq. ft. to 14,000 sq. ft., which is about a quarter to half the footprint of an average 40,000-sq.-ft. Whole Foods location.
Grocery Outlet to open 15 - 20 stores in 2024; 100 approved sites for 2025 and 2026
Grocery Outlet Holding Corp. is expanding its reach.The extreme discount grocer opened 13 new stores during its fourth quarter, including its first location in Ohio, for a total of 468 stores in nine states. It plans to open 15 to 20 new stores in 2024.
Ribs With Your Pancakes? Applebee’s and IHOP Placed Under One Roof As Eateries Test Formats
Dine Brands Global is looking to develop more dual-branded restaurants, blending some of its new Applebee’s and IHOP restaurants into one eatery under the same roof to save money on real estate and supplies while driving more sales. Competitors including Outback Steakhouse and the Cheesecake Factory are also looking for property efficiencies. They are planning expansions and remodeling restaurants to capitalize on steady restaurant spending of the past three years after dining room shutdowns of the COVID-19 pandemic’s early months.
Church’s Road Back Began with Finding Itself Again
This compass—“who we are”—has served as the central theme in the 72-year-old brand’s turnaround since Guith, a former GoTo Foods (then Focus Brands) executive, arrived in early August 2022. Church’s was founded in 1952 in San Antonio, Texas, by George W. Church. It was a walk-up stand located a block south of the Alamo that sold two pieces of chicken and a roll for 49 cents. It began as “Church’s Fried Chicken-To-Go.”
Dutch Bros to open 150 to 165 shops in 2024; moving some corporate jobs to Phoenix
Dutch Bros ended the year on an upbeat note as it continues to drive new store growth. The fast-growing drive-thru coffee chain’s total revenue rose 25.9% to $254.1 million in the fourth quarter (ended Dec. 31). For the full year, total revenue grew 30.7% to $965.8 million.
