I have a caribbean chicken rest.tanant. A cajun chicken rest wants to come in.

They would be on opposite sides of a corner property. Legally I can do it, but wonder if two types of chicken is a conflict. The menus are extremely different except for 1 item. They both serve soft drinks also.
Thank you for any ideas.
In Leasing Property - Asked by doug s. - Oct 11, 2010
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Answer(s)

Kevin M.
Broker/Agent
Springfield, NJ

I see a lot of similiar restaraunts/stores that are in extreme close proximity and they both seem to strive. If they are both strong enough they could both do well. Keep it mind that restauraunts are a very tough business and most do fail within a year regardless of competition.

Oct 12, 2010
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Frank N.
Broker/Agent
Phoenix, AZ

Seem to me that the concepts are substantially different that there would not be a conflict.

Oct 12, 2010
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Russell N.
Property/Asset Manager
South Yarmouth, MA

I think if their menu's are different it wouldn't take anything away from the other tenant. I had the same issue with cell phone providers, they didn't have an exclusive clause, but I asked the existing tenant how the felt about it, and said they welcome the competition.

Oct 14, 2010
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Marty H.
Broker/Agent
Lenexa, KS

First take a look at your existing lease to make sure you didn't agree to any sort of exclusive.
Next consider how the existing business is doing financially and what the potential is for restaurant sales in the area. In other words, if this is a small trade area there may not be sufficient volume available to support two chicken restaurants. The end result could be that you end up with two closed chicken restaurants.
Which tenant is stronger....from both a financial and concept standpoint? In other words, if you had to choose just one of them, which would it be? Issues like: how long existing tenant's lease is; rents generated; strength of lease guarantee; etc. come into play.
Once you have details on the new restaurant, sit down with existing operator and find out if the addition of another chicken operation is going to be a problem....my guess is that he will initially object so you will need to explain about the menu differences, etc.
In the end, if you are confident that they new chicken place will be a good, long term tenant capable of sustained success and is a tenant that you would pick over your existing restaurant go ahead and make the deal.....particularly if the existing restaurant doesn't have much time remaining on their lease.

Oct 22, 2010
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