(Newswire.net — October 8, 2014) Salt Lake City, UT — It’s estimated that 60% of new restaurant concepts don’t survive for more than 3 years. And yet, some restaurants, like Costa Vida, aren’t just surviving, they’re thriving! So, how do they do it? What’s their secret ingredient? Tenant Representatives! Wait, tenant what?
Tenant representatives, like Logical Move in Salt Lake City, Utah, exclusively represent the interests of buyers or leasees (not sellers) in commercial real-estate transactions. Costa Vida has been using Tenant Reps since 2003. And they aren’t shy about saying these representatives have helped Costa Vida grow its operation to sixty-five fast-casual restaurants operating in the U.S. and Canada in about eleven years.
Terry Jennings, Director of Real Estate for Costa Vida says a good tenant representative is very often the “secret ingredient” in the success of a restaurant. Their expertise in site selection and lease negotiations is irreplaceable and the value they add can’t be overestimated.
“We have been very busy vetting and aligning Costa Vida with the strongest Tenant Reps. in all the markets we are in. The brokers we have selected all have over a decade of experience in their markets and come with the highest recommendations. They also represent other restaurant chains and are familiar with the nuances of putting a restaurant deal together.”
Jeff Jacobson, Chief Operating Officer of Costa Vida says ‘best practices’ regarding the procurement of new locations involves a steady hand and Tenant Representatives provide that guidance.
“We always ask ourselves, what do the numbers say? Don’t make emotional decisions or give in to the hype surrounding a particular development. Don’t get caught up on $1-2 PSF when something like the direction of rush hour traffic can make or break the store for you.”
Mr. Jacobson personally inspects every new Costa Vida location and has seen it all when it comes to the good, the bad, and the ugly. He believes the company is poised for another period of retail growth and having Tenant Reps in each market is essential to pulling it off.
“Over the last 18 months, we’ve seen a major uptick in the number of potential sites across the country that would be a good fit for the Costa Vida brand,” says Jacobson. “General economic growth in the U.S. has fueled opportunities in new demographics for us.”
In addition to using Tenant Representatives to secure the best locations and terms, Jacobsen says Costa Vida’s focus on data is another major ingredient in their overall success. From day one, the Spark Solutions Group has provided cutting-edge Point of Sale and Enterprise Sales systems for all their restaurants. Undoubtedly, Spark’s emphasis on effective decision through great systems has made a difference.
“We’ve really tried to stick to the fundamentals of our management group… our decisions are data driven and we follow ‘best practices’ that we’ve learned through data those on to our franchisees.”
Growth in any business requires a common goal, energetic team members and just the right ingredients. Costa Vida is succeeding because they’ve built winning combinations – not only in their food but also in how they operate the business.
About Costa Vida: Operates 65 locations in 12 U.S. states and Canada; plans for 500+ locations by 2018; current expansion focus is on Mid-western metropolitan areas; more about Costa Vida – Costa Vida
About Logical Move: Utah’s only broker specializing in Buyer and Tenant Representation for retail, office and industrial properties; 20+ years of experience; ITRA Global Member – For more about CRE Tenant Reps – Logical Move – ITRA Broker
About Spark Solutions Group: – Over 40 Years in Point of Sale experience; Restaurant Operation and Management Consultants – Spark Solutions
Mr. Tim Sleeper, Principal in Logical Move, will be discussing his conversations with Costa Vida executives, more details about Tenant Representation and how other businesses could benefit from this type of representation.